IRIDIUM COMMUNICATIONS INC (IRDM) Fundamental Analysis & Valuation

NASDAQ:IRDM • US46269C1027

Current stock price

34.81 USD
+0.19 (+0.55%)
Last:

This IRDM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. IRDM Profitability Analysis

1.1 Basic Checks

  • In the past year IRDM was profitable.
  • IRDM had a positive operating cash flow in the past year.
  • IRDM had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years IRDM had a positive operating cash flow.
IRDM Yearly Net Income VS EBIT VS OCF VS FCFIRDM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M 400M

1.2 Ratios

  • IRDM has a better Return On Assets (4.52%) than 72.97% of its industry peers.
  • IRDM has a Return On Equity of 24.72%. This is amongst the best in the industry. IRDM outperforms 91.89% of its industry peers.
  • IRDM's Return On Invested Capital of 8.28% is amongst the best of the industry. IRDM outperforms 89.19% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IRDM is in line with the industry average of 5.92%.
  • The 3 year average ROIC (5.97%) for IRDM is below the current ROIC(8.28%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.52%
ROE 24.72%
ROIC 8.28%
ROA(3y)3.11%
ROA(5y)1.86%
ROE(3y)15.34%
ROE(5y)9.21%
ROIC(3y)5.97%
ROIC(5y)4.3%
IRDM Yearly ROA, ROE, ROICIRDM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

  • The Profit Margin of IRDM (13.12%) is better than 78.38% of its industry peers.
  • IRDM's Profit Margin has improved in the last couple of years.
  • IRDM has a Operating Margin of 27.07%. This is amongst the best in the industry. IRDM outperforms 97.30% of its industry peers.
  • IRDM's Operating Margin has improved in the last couple of years.
  • IRDM has a Gross Margin of 71.55%. This is amongst the best in the industry. IRDM outperforms 86.49% 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 RankSector Rank
OM 27.07%
PM (TTM) 13.12%
GM 71.55%
OM growth 3Y36.53%
OM growth 5Y34.79%
PM growth 3Y121.55%
PM growth 5YN/A
GM growth 3Y-0.26%
GM growth 5Y-1.08%
IRDM Yearly Profit, Operating, Gross MarginsIRDM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. IRDM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IRDM is creating some value.
  • IRDM has less shares outstanding than it did 1 year ago.
  • 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.
IRDM Yearly Shares OutstandingIRDM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
IRDM Yearly Total Debt VS Total AssetsIRDM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • IRDM has an Altman-Z score of 1.55. This is a bad value and indicates that IRDM is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.55, IRDM is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
  • The Debt to FCF ratio of IRDM is 5.87, which is a neutral value as it means it would take IRDM, 5.87 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 5.87, IRDM belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
  • A Debt/Equity ratio of 3.80 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 3.80, IRDM is doing worse than 78.38% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 5.87
Altman-Z 1.55
ROIC/WACC1.11
WACC7.44%
IRDM Yearly LT Debt VS Equity VS FCFIRDM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 2.48 indicates that IRDM has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.48, IRDM belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
  • A Quick Ratio of 1.82 indicates that IRDM should not have too much problems paying its short term obligations.
  • IRDM has a better Quick ratio (1.82) than 75.68% of its industry peers.
Industry RankSector Rank
Current Ratio 2.48
Quick Ratio 1.82
IRDM Yearly Current Assets VS Current LiabilitesIRDM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. IRDM Growth Analysis

3.1 Past

  • IRDM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
  • IRDM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 147.63% yearly.
  • IRDM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.93%.
  • IRDM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.36% yearly.
EPS 1Y (TTM)10.73%
EPS 3Y147.64%
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)4.93%
Revenue growth 3Y6.53%
Revenue growth 5Y8.36%
Sales Q2Q%-0.02%

3.2 Future

  • The Earnings Per Share is expected to grow by 15.37% on average over the next years. This is quite good.
  • IRDM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.
EPS Next Y7.29%
EPS Next 2Y9.87%
EPS Next 3Y18.41%
EPS Next 5Y15.37%
Revenue Next Year0.56%
Revenue Next 2Y1.52%
Revenue Next 3Y2.03%
Revenue Next 5Y2.76%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
IRDM Yearly Revenue VS EstimatesIRDM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200M 400M 600M 800M 1B
IRDM Yearly EPS VS EstimatesIRDM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 -1 2

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3

4. IRDM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 32.84, which means the current valuation is very expensive for IRDM.
  • IRDM's Price/Earnings ratio is a bit cheaper when compared to the industry. IRDM is cheaper than 62.16% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, IRDM is valued a bit more expensive.
  • A Price/Forward Earnings ratio of 30.52 indicates a quite expensive valuation of IRDM.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of IRDM is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 23.69. IRDM is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 32.84
Fwd PE 30.52
IRDM Price Earnings VS Forward Price EarningsIRDM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • IRDM's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as IRDM.
Industry RankSector Rank
P/FCF 12.19
EV/EBITDA 11.87
IRDM Per share dataIRDM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IRDM does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of IRDM may justify a higher PE ratio.
  • IRDM's earnings are expected to grow with 18.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.5
PEG (5Y)N/A
EPS Next 2Y9.87%
EPS Next 3Y18.41%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. IRDM Dividend Analysis

5.1 Amount

  • IRDM has a Yearly Dividend Yield of 2.11%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.25, IRDM pays a bit more dividend than its industry peers.
  • IRDM's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.11%

5.2 History

  • The dividend of IRDM is nicely growing with an annual growth rate of 31.87%!
  • IRDM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)31.87%
Div Incr Years2
Div Non Decr Years2
IRDM Yearly Dividends per shareIRDM Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 2026 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • IRDM pays out 54.96% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • IRDM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.96%
EPS Next 2Y9.87%
EPS Next 3Y18.41%
IRDM Yearly Income VS Free CF VS DividendIRDM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M
IRDM Dividend Payout.IRDM Dividend Payout, showing the Payout Ratio.IRDM Dividend Payout.PayoutRetained Earnings

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IRDM Fundamentals: All Metrics, Ratios and Statistics

IRIDIUM COMMUNICATIONS INC

NASDAQ:IRDM (4/9/2026, 3:29:59 PM)

34.81

+0.19 (+0.55%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-12
Earnings (Next)04-23
Inst Owners92.61%
Inst Owner Change0%
Ins Owners2.68%
Ins Owner Change5.36%
Market Cap3.65B
Revenue(TTM)871.66M
Net Income(TTM)114.37M
Analysts78.75
Price Target28.67 (-17.64%)
Short Float %7.94%
Short Ratio3.11
Dividend
Industry RankSector Rank
Dividend Yield 2.11%
Yearly Dividend0.58
Dividend Growth(5Y)31.87%
DP54.96%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-16
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.93%
Min EPS beat(2)-0.67%
Max EPS beat(2)32.54%
EPS beat(4)2
Avg EPS beat(4)7.96%
Min EPS beat(4)-17.49%
Max EPS beat(4)32.54%
EPS beat(8)6
Avg EPS beat(8)23.26%
EPS beat(12)8
Avg EPS beat(12)194.65%
EPS beat(16)11
Avg EPS beat(16)275.75%
Revenue beat(2)1
Avg Revenue beat(2)-1.68%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)0.97%
Revenue beat(4)1
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)0.97%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.21%
Revenue beat(16)8
Avg Revenue beat(16)0.88%
PT rev (1m)0%
PT rev (3m)-2.32%
EPS NQ rev (1m)22.47%
EPS NQ rev (3m)37.93%
EPS NY rev (1m)0%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-1.53%
Valuation
Industry RankSector Rank
PE 32.84
Fwd PE 30.52
P/S 4.19
P/FCF 12.19
P/OCF 9.13
P/B 7.9
P/tB 13.2
EV/EBITDA 11.87
EPS(TTM)1.06
EY3.05%
EPS(NY)1.14
Fwd EY3.28%
FCF(TTM)2.86
FCFY8.21%
OCF(TTM)3.81
OCFY10.95%
SpS8.3
BVpS4.41
TBVpS2.64
PEG (NY)4.5
PEG (5Y)N/A
Graham Number10.25
Profitability
Industry RankSector Rank
ROA 4.52%
ROE 24.72%
ROCE 9.75%
ROIC 8.28%
ROICexc 8.62%
ROICexgc 9.37%
OM 27.07%
PM (TTM) 13.12%
GM 71.55%
FCFM 34.39%
ROA(3y)3.11%
ROA(5y)1.86%
ROE(3y)15.34%
ROE(5y)9.21%
ROIC(3y)5.97%
ROIC(5y)4.3%
ROICexc(3y)6.2%
ROICexc(5y)4.5%
ROICexgc(3y)6.67%
ROICexgc(5y)4.8%
ROCE(3y)7.04%
ROCE(5y)5.07%
ROICexgc growth 3Y55.29%
ROICexgc growth 5Y55.87%
ROICexc growth 3Y51.85%
ROICexc growth 5Y53.76%
OM growth 3Y36.53%
OM growth 5Y34.79%
PM growth 3Y121.55%
PM growth 5YN/A
GM growth 3Y-0.26%
GM growth 5Y-1.08%
F-Score7
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 5.87
Debt/EBITDA 3.94
Cap/Depr 47.71%
Cap/Sales 11.5%
Interest Coverage 2.62
Cash Conversion 89.66%
Profit Quality 262.12%
Current Ratio 2.48
Quick Ratio 1.82
Altman-Z 1.55
F-Score7
WACC7.44%
ROIC/WACC1.11
Cap/Depr(3y)35.03%
Cap/Depr(5y)28.47%
Cap/Sales(3y)9.74%
Cap/Sales(5y)9.19%
Profit Quality(3y)699.9%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.73%
EPS 3Y147.64%
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y7.29%
EPS Next 2Y9.87%
EPS Next 3Y18.41%
EPS Next 5Y15.37%
Revenue 1Y (TTM)4.93%
Revenue growth 3Y6.53%
Revenue growth 5Y8.36%
Sales Q2Q%-0.02%
Revenue Next Year0.56%
Revenue Next 2Y1.52%
Revenue Next 3Y2.03%
Revenue Next 5Y2.76%
EBIT growth 1Y15.95%
EBIT growth 3Y45.44%
EBIT growth 5Y46.06%
EBIT Next Year109.7%
EBIT Next 3Y30.99%
EBIT Next 5Y20.25%
FCF growth 1Y-2.05%
FCF growth 3Y3.12%
FCF growth 5Y7.27%
OCF growth 1Y6.42%
OCF growth 3Y5.09%
OCF growth 5Y9.88%

IRIDIUM COMMUNICATIONS INC / IRDM Fundamental Analysis FAQ

What is the fundamental rating for IRDM stock?

ChartMill assigns a fundamental rating of 6 / 10 to IRDM.


What is the valuation status for IRDM stock?

ChartMill assigns a valuation rating of 3 / 10 to IRIDIUM COMMUNICATIONS INC (IRDM). This can be considered as Overvalued.


How profitable is IRIDIUM COMMUNICATIONS INC (IRDM) stock?

IRIDIUM COMMUNICATIONS INC (IRDM) has a profitability rating of 8 / 10.


What are the PE and PB ratios of IRIDIUM COMMUNICATIONS INC (IRDM) stock?

The Price/Earnings (PE) ratio for IRIDIUM COMMUNICATIONS INC (IRDM) is 32.84 and the Price/Book (PB) ratio is 7.9.


How sustainable is the dividend of IRIDIUM COMMUNICATIONS INC (IRDM) stock?

The dividend rating of IRIDIUM COMMUNICATIONS INC (IRDM) is 4 / 10 and the dividend payout ratio is 54.96%.