IRIDIUM COMMUNICATIONS INC (IRDM) Stock Fundamental Analysis
USA - NASDAQ:IRDM - US46269C1027 - Common Stock
19.01 USD
+0.21 (+1.12%)
Overall IRDM gets a fundamental rating of 6 out of 10. We evaluated IRDM against 36 industry peers in the Diversified Telecommunication Services industry. While IRDM has a great profitability rating, there are some minor concerns on its financial health. IRDM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year IRDM was profitable.
IRDM had a positive operating cash flow in the past year.
In multiple years IRDM reported negative net income over the last 5 years.
Each year in the past 5 years IRDM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.41%, IRDM belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
The Return On Equity of IRDM (23.89%) is better than 97.22% of its industry peers.
The Return On Invested Capital of IRDM (7.86%) is better than 86.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IRDM is in line with the industry average of 5.86%.
The 3 year average ROIC (4.17%) for IRDM is below the current ROIC(7.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 23.89% | ||
| ROIC | 7.86% |
ROA(3y)1.7%
ROA(5y)0.63%
ROE(3y)7.35%
ROE(5y)3.48%
ROIC(3y)4.17%
ROIC(5y)2.96%
1.3 Margins
IRDM has a Profit Margin of 13.20%. This is amongst the best in the industry. IRDM outperforms 86.11% of its industry peers.
IRDM's Operating Margin of 25.46% is amongst the best of the industry. IRDM outperforms 88.89% of its industry peers.
IRDM's Operating Margin has improved in the last couple of years.
The Gross Margin of IRDM (71.62%) is better than 88.89% of its industry peers.
In the last couple of years the Gross Margin of IRDM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.46% | ||
| PM (TTM) | 13.2% | ||
| GM | 71.62% |
OM growth 3Y48.14%
OM growth 5Y68.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.47%
GM growth 5Y-0.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IRDM is still creating some value.
Compared to 1 year ago, IRDM has less shares outstanding
The number of shares outstanding for IRDM has been reduced compared to 5 years ago.
The debt/assets ratio for IRDM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that IRDM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.01, IRDM is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
IRDM has a debt to FCF ratio of 5.55. This is a neutral value as IRDM would need 5.55 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 5.55, IRDM belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 3.82 is on the high side and indicates that IRDM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.82, IRDM is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.82 | ||
| Debt/FCF | 5.55 | ||
| Altman-Z | 1.01 |
ROIC/WACC1.11
WACC7.1%
2.3 Liquidity
IRDM has a Current Ratio of 2.51. This indicates that IRDM is financially healthy and has no problem in meeting its short term obligations.
IRDM has a better Current ratio (2.51) than 88.89% of its industry peers.
IRDM has a Quick Ratio of 1.75. This is a normal value and indicates that IRDM is financially healthy and should not expect problems in meeting its short term obligations.
IRDM's Quick ratio of 1.75 is amongst the best of the industry. IRDM outperforms 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
IRDM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.27%, which is quite impressive.
The Revenue has been growing slightly by 7.56% in the past year.
The Revenue has been growing by 8.19% on average over the past years. This is quite good.
EPS 1Y (TTM)41.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-24.81%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%7.88%
3.2 Future
IRDM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.81% yearly.
Based on estimates for the next years, IRDM will show a small growth in Revenue. The Revenue will grow by 5.65% on average per year.
EPS Next Y5.93%
EPS Next 2Y12.8%
EPS Next 3Y17.38%
EPS Next 5Y27.81%
Revenue Next Year6.37%
Revenue Next 2Y4.74%
Revenue Next 3Y4.51%
Revenue Next 5Y5.65%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
IRDM is valuated rather expensively with a Price/Earnings ratio of 19.01.
63.89% of the companies in the same industry are more expensive than IRDM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IRDM to the average of the S&P500 Index (27.34), we can say IRDM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.56, the valuation of IRDM can be described as correct.
IRDM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IRDM is cheaper than 69.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, IRDM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
IRDM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, IRDM is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.19 | ||
| EV/EBITDA | 8.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
IRDM has an outstanding profitability rating, which may justify a higher PE ratio.
IRDM's earnings are expected to grow with 17.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.21
PEG (5Y)N/A
EPS Next 2Y12.8%
EPS Next 3Y17.38%
5. Dividend
5.1 Amount
IRDM has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of IRDM has falen by -41.40%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
IRDM's Dividend Yield is a higher than the industry average which is at 5.11.
IRDM's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
On average, the dividend of IRDM grows each year by 69.07%, which is quite nice.
IRDM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)69.07%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
55.46% of the earnings are spent on dividend by IRDM. This is a bit on the high side, but may be sustainable.
The dividend of IRDM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.46%
EPS Next 2Y12.8%
EPS Next 3Y17.38%
NASDAQ:IRDM (10/14/2025, 11:49:25 AM)
19.01
+0.21 (+1.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners95.02%
Inst Owner Change-0.35%
Ins Owners2.58%
Ins Owner Change-0.33%
Market Cap2.02B
Analysts80
Price Target33.21 (74.7%)
Short Float %13.78%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend0.56
Dividend Growth(5Y)69.07%
DP55.46%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.01%
Min EPS beat(2)-17.49%
Max EPS beat(2)17.47%
EPS beat(4)3
Avg EPS beat(4)24.62%
Min EPS beat(4)-17.49%
Max EPS beat(4)94.51%
EPS beat(8)6
Avg EPS beat(8)101.66%
EPS beat(12)8
Avg EPS beat(12)154.92%
EPS beat(16)11
Avg EPS beat(16)274.95%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)-0.39%
Revenue beat(4)2
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)2.26%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)5
Avg Revenue beat(12)0.8%
Revenue beat(16)9
Avg Revenue beat(16)1.34%
PT rev (1m)-6.98%
PT rev (3m)-15.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.41%
EPS NY rev (1m)-5.08%
EPS NY rev (3m)-7.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 15.56 | ||
| P/S | 2.35 | ||
| P/FCF | 6.19 | ||
| P/OCF | 4.87 | ||
| P/B | 4.26 | ||
| P/tB | 7.06 | ||
| EV/EBITDA | 8.76 |
EPS(TTM)1
EY5.26%
EPS(NY)1.22
Fwd EY6.43%
FCF(TTM)3.07
FCFY16.16%
OCF(TTM)3.9
OCFY20.53%
SpS8.08
BVpS4.46
TBVpS2.69
PEG (NY)3.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 23.89% | ||
| ROCE | 8.85% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.12% | ||
| ROICexgc | 8.82% | ||
| OM | 25.46% | ||
| PM (TTM) | 13.2% | ||
| GM | 71.62% | ||
| FCFM | 38.01% |
ROA(3y)1.7%
ROA(5y)0.63%
ROE(3y)7.35%
ROE(5y)3.48%
ROIC(3y)4.17%
ROIC(5y)2.96%
ROICexc(3y)4.34%
ROICexc(5y)3.12%
ROICexgc(3y)4.59%
ROICexgc(5y)3.27%
ROCE(3y)4.7%
ROCE(5y)3.34%
ROICexcg growth 3Y75.01%
ROICexcg growth 5Y96.64%
ROICexc growth 3Y71.22%
ROICexc growth 5Y94.01%
OM growth 3Y48.14%
OM growth 5Y68.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.47%
GM growth 5Y-0.51%
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.82 | ||
| Debt/FCF | 5.55 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 42.56% | ||
| Cap/Sales | 10.28% | ||
| Interest Coverage | 2.28 | ||
| Cash Conversion | 97.34% | ||
| Profit Quality | 288.04% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | 1.01 |
F-Score7
WACC7.1%
ROIC/WACC1.11
Cap/Depr(3y)26.95%
Cap/Depr(5y)21.48%
Cap/Sales(3y)9.2%
Cap/Sales(5y)8.22%
Profit Quality(3y)1660.03%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)41.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-24.81%
EPS Next Y5.93%
EPS Next 2Y12.8%
EPS Next 3Y17.38%
EPS Next 5Y27.81%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%7.88%
Revenue Next Year6.37%
Revenue Next 2Y4.74%
Revenue Next 3Y4.51%
Revenue Next 5Y5.65%
EBIT growth 1Y28.18%
EBIT growth 3Y63.8%
EBIT growth 5Y82.32%
EBIT Next Year135.94%
EBIT Next 3Y38.05%
EBIT Next 5Y28.07%
FCF growth 1Y30.65%
FCF growth 3Y5.48%
FCF growth 5Y30.68%
OCF growth 1Y23.58%
OCF growth 3Y7.47%
OCF growth 5Y13.67%