IRIDIUM COMMUNICATIONS INC (IRDM)
US46269C1027 - Common Stock
Taking everything into account, IRDM scores 5 out of 10 in our fundamental rating. IRDM was compared to 36 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of IRDM get a neutral evaluation. Nothing too spectacular is happening here. IRDM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IRDM was profitable.
In the past year IRDM had a positive cash flow from operations.
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
IRDM has a Return On Assets (0.58%) which is in line with its industry peers.
IRDM's Return On Equity of 1.75% is in line compared to the rest of the industry. IRDM outperforms 58.33% of its industry peers.
IRDM's Return On Invested Capital of 2.55% is in line compared to the rest of the industry. IRDM outperforms 50.00% of its industry peers.
IRDM had an Average Return On Invested Capital over the past 3 years of 1.96%. This is below the industry average of 5.84%.
The 3 year average ROIC (1.96%) for IRDM is below the current ROIC(2.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.75% | ||
| ROIC | 2.55% |
ROA(3y)0.19%
ROA(5y)-1.13%
ROE(3y)0.59%
ROE(5y)-2.71%
ROIC(3y)1.96%
ROIC(5y)1.4%
1.3 Margins
IRDM has a Profit Margin of 1.96%. This is comparable to the rest of the industry: IRDM outperforms 55.56% of its industry peers.
IRDM has a Operating Margin of 10.32%. This is in the better half of the industry: IRDM outperforms 61.11% of its industry peers.
IRDM's Operating Margin has improved in the last couple of years.
IRDM has a Gross Margin of 71.53%. This is amongst the best in the industry. IRDM outperforms 88.89% of its industry peers.
IRDM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.32% | ||
| PM (TTM) | 1.96% | ||
| GM | 71.53% |
OM growth 3Y19.27%
OM growth 5Y5.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.8%
GM growth 5Y-0.32%
2. Health
2.1 Basic Checks
IRDM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for IRDM has been reduced compared to 1 year ago.
Compared to 5 years ago, IRDM has more shares outstanding
IRDM has a worse debt/assets ratio than last year.
2.2 Solvency
IRDM has an Altman-Z score of 1.41. 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 1.41, IRDM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of IRDM is 6.14, which is on the high side as it means it would take IRDM, 6.14 years of fcf income to pay off all of its debts.
IRDM's Debt to FCF ratio of 6.14 is amongst the best of the industry. IRDM outperforms 83.33% of its industry peers.
IRDM has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IRDM (1.65) is worse than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.32
WACC7.85%
2.3 Liquidity
A Current Ratio of 2.06 indicates that IRDM has no problem at all paying its short term obligations.
IRDM has a better Current ratio (2.06) than 88.89% of its industry peers.
A Quick Ratio of 1.37 indicates that IRDM should not have too much problems paying its short term obligations.
IRDM's Quick ratio of 1.37 is fine compared to the rest of the industry. IRDM outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
IRDM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.43%, which is quite impressive.
Looking at the last year, IRDM shows a quite strong growth in Revenue. The Revenue has grown by 9.67% in the last year.
Measured over the past years, IRDM shows a quite strong growth in Revenue. The Revenue has been growing by 8.62% on average per year.
EPS 1Y (TTM)71.43%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q3000%
Revenue 1Y (TTM)9.67%
Revenue growth 3Y10.67%
Revenue growth 5Y8.62%
Revenue growth Q2Q0.49%
3.2 Future
The Earnings Per Share is expected to grow by 164.68% on average over the next years. This is a very strong growth
IRDM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.04% yearly.
EPS Next Y528.72%
EPS Next 2Y164.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.07%
Revenue Next 2Y1.34%
Revenue Next 3Y2.27%
Revenue Next 5Y4.04%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 217.17, which means the current valuation is very expensive for IRDM.
The rest of the industry has a similar Price/Earnings ratio as IRDM.
IRDM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.80.
With a Price/Forward Earnings ratio of 34.54, IRDM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRDM indicates a somewhat cheap valuation: IRDM is cheaper than 61.11% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of IRDM to the average of the S&P500 Index (21.27), we can say IRDM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 217.17 | ||
| Fwd PE | 34.54 |
4.2 Price Multiples
63.89% of the companies in the same industry are cheaper than IRDM, based on the Enterprise Value to EBITDA ratio.
IRDM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.14 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IRDM's earnings are expected to grow with 164.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y164.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, IRDM has a reasonable but not impressive dividend return.
The stock price of IRDM dropped by -30.06% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.90, IRDM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, IRDM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of IRDM grows each year by 26.43%, which is quite nice.
IRDM does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)26.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
IRDM pays out 417.28% of its income as dividend. This is not a sustainable payout ratio.
IRDM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP417.28%
EPS Next 2Y164.68%
EPS Next 3YN/A
IRIDIUM COMMUNICATIONS INC
NASDAQ:IRDM (4/18/2024, 7:01:33 PM)
After market: 26.44 +0.38 (+1.46%)26.06
+1.35 (+5.46%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 217.17 | ||
| Fwd PE | 34.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.32% | ||
| PM (TTM) | 1.96% | ||
| GM | 71.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)71.43%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y528.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.67%
Revenue growth 3Y10.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y