IRIDIUM COMMUNICATIONS INC (IRDM) Stock Fundamental Analysis
USA - NASDAQ:IRDM - US46269C1027 - Common Stock
16.49 USD
-0.29 (-1.73%)
16.65 USD
+0.16 (+0.97%)
IRDM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 36 industry peers in the Diversified Telecommunication Services industry. IRDM scores excellent on profitability, but there are some minor concerns on its financial health. IRDM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
IRDM had positive earnings in the past year.
IRDM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: IRDM reported negative net income in multiple years.
Each year in the past 5 years IRDM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.93%, IRDM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With an excellent Return On Equity value of 27.94%, IRDM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
IRDM has a better Return On Invested Capital (8.45%) than 86.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IRDM is below the industry average of 6.52%.
The 3 year average ROIC (4.17%) for IRDM is below the current ROIC(8.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 27.94% | ||
| ROIC | 8.45% |
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's Profit Margin of 14.44% is amongst the best of the industry. IRDM outperforms 80.56% of its industry peers.
The Operating Margin of IRDM (26.75%) is better than 91.67% of its industry peers.
IRDM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 71.30%, IRDM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
IRDM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.75% | ||
| PM (TTM) | 14.44% | ||
| GM | 71.3% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IRDM is creating some value.
Compared to 1 year ago, IRDM has less shares outstanding
IRDM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IRDM is higher compared to a year ago.
2.2 Solvency
IRDM has an Altman-Z score of 0.99. This is a bad value and indicates that IRDM is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.99, IRDM is doing good in the industry, outperforming 63.89% of the companies in the same industry.
The Debt to FCF ratio of IRDM is 5.93, which is a neutral value as it means it would take IRDM, 5.93 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 5.93, IRDM belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 4.02 is on the high side and indicates that IRDM has dependencies on debt financing.
IRDM has a worse Debt to Equity ratio (4.02) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 0.99 |
ROIC/WACC1.2
WACC7.02%
2.3 Liquidity
IRDM has a Current Ratio of 2.67. This indicates that IRDM is financially healthy and has no problem in meeting its short term obligations.
IRDM has a Current ratio of 2.67. This is amongst the best in the industry. IRDM outperforms 88.89% of its industry peers.
A Quick Ratio of 1.93 indicates that IRDM should not have too much problems paying its short term obligations.
IRDM has a Quick ratio of 1.93. This is amongst the best in the industry. IRDM outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
IRDM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.90%, which is quite impressive.
IRDM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
The Revenue has been growing by 8.19% on average over the past years. This is quite good.
EPS 1Y (TTM)22.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%6.66%
3.2 Future
IRDM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.07% yearly.
IRDM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.46% yearly.
EPS Next Y11.59%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
EPS Next 5Y17.07%
Revenue Next Year6.52%
Revenue Next 2Y4.08%
Revenue Next 3Y3.99%
Revenue Next 5Y4.46%
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
The Price/Earnings ratio is 14.46, which indicates a correct valuation of IRDM.
Compared to the rest of the industry, the Price/Earnings ratio of IRDM indicates a somewhat cheap valuation: IRDM is cheaper than 72.22% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. IRDM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.87, IRDM is valued correctly.
Based on the Price/Forward Earnings ratio, IRDM is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
IRDM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 14.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRDM is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IRDM is valued cheaper than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.73 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
IRDM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of IRDM may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.37%, IRDM has a reasonable but not impressive dividend return.
In the last 3 months the price of IRDM has falen by -34.07%. 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 5.35.
Compared to an average S&P500 Dividend Yield of 2.36, IRDM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
The dividend of IRDM is nicely growing with an annual growth rate of 69.07%!
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
49.66% of the earnings are spent on dividend by IRDM. 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.
DP49.66%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
16.49
-0.29 (-1.73%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners95.02%
Inst Owner Change-1.43%
Ins Owners2.58%
Ins Owner Change-0.22%
Market Cap1.75B
Revenue(TTM)871.71M
Net Income(TTM)125.85M
Analysts80
Price Target29.35 (77.99%)
Short Float %10.59%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend0.56
Dividend Growth(5Y)69.07%
DP49.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.52%
Min EPS beat(2)-17.49%
Max EPS beat(2)32.54%
EPS beat(4)3
Avg EPS beat(4)31.76%
Min EPS beat(4)-17.49%
Max EPS beat(4)94.51%
EPS beat(8)7
Avg EPS beat(8)122.6%
EPS beat(12)8
Avg EPS beat(12)156.35%
EPS beat(16)11
Avg EPS beat(16)273.71%
Revenue beat(2)1
Avg Revenue beat(2)0.13%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)2.26%
Revenue beat(8)4
Avg Revenue beat(8)0.31%
Revenue beat(12)6
Avg Revenue beat(12)0.9%
Revenue beat(16)9
Avg Revenue beat(16)1.18%
PT rev (1m)-11.6%
PT rev (3m)-20.34%
EPS NQ rev (1m)-8.42%
EPS NQ rev (3m)-8.29%
EPS NY rev (1m)5.34%
EPS NY rev (3m)-2.48%
Revenue NQ rev (1m)-1.33%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 14.87 | ||
| P/S | 2.01 | ||
| P/FCF | 5.73 | ||
| P/OCF | 4.42 | ||
| P/B | 3.88 | ||
| P/tB | 6.64 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)1.14
EY6.91%
EPS(NY)1.11
Fwd EY6.72%
FCF(TTM)2.88
FCFY17.44%
OCF(TTM)3.73
OCFY22.65%
SpS8.22
BVpS4.25
TBVpS2.48
PEG (NY)1.25
PEG (5Y)N/A
Graham Number10.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 27.94% | ||
| ROCE | 9.51% | ||
| ROIC | 8.45% | ||
| ROICexc | 8.77% | ||
| ROICexgc | 9.52% | ||
| OM | 26.75% | ||
| PM (TTM) | 14.44% | ||
| GM | 71.3% | ||
| FCFM | 35.01% |
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%
ROICexgc growth 3Y75.01%
ROICexgc 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.93 | ||
| Debt/EBITDA | 4.09 | ||
| Cap/Depr | 43.58% | ||
| Cap/Sales | 10.45% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 89.64% | ||
| Profit Quality | 242.52% | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 0.99 |
F-Score7
WACC7.02%
ROIC/WACC1.2
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)22.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
EPS Next Y11.59%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
EPS Next 5Y17.07%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.57%
Revenue growth 5Y8.19%
Sales Q2Q%6.66%
Revenue Next Year6.52%
Revenue Next 2Y4.08%
Revenue Next 3Y3.99%
Revenue Next 5Y4.46%
EBIT growth 1Y18.13%
EBIT growth 3Y63.8%
EBIT growth 5Y82.32%
EBIT Next Year135.94%
EBIT Next 3Y38.05%
EBIT Next 5Y26.25%
FCF growth 1Y30.71%
FCF growth 3Y5.48%
FCF growth 5Y30.68%
OCF growth 1Y24.89%
OCF growth 3Y7.47%
OCF growth 5Y13.67%
IRIDIUM COMMUNICATIONS INC / IRDM FAQ
What is the fundamental rating for IRDM stock?
ChartMill assigns a fundamental rating of 6 / 10 to IRDM.
What is the valuation status of IRIDIUM COMMUNICATIONS INC (IRDM) stock?
ChartMill assigns a valuation rating of 6 / 10 to IRIDIUM COMMUNICATIONS INC (IRDM). This can be considered as Fairly Valued.
What is the profitability of IRDM stock?
IRIDIUM COMMUNICATIONS INC (IRDM) has a profitability rating of 7 / 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 14.46 and the Price/Book (PB) ratio is 3.88.
What is the earnings growth outlook for IRIDIUM COMMUNICATIONS INC?
The Earnings per Share (EPS) of IRIDIUM COMMUNICATIONS INC (IRDM) is expected to grow by 11.59% in the next year.