IRIDIUM COMMUNICATIONS INC (IRDM) Stock Fundamental Analysis
USA - NASDAQ:IRDM - US46269C1027 - Common Stock
16.69 USD
-0.16 (-0.95%)
16.5 USD
-0.19 (-1.14%)
Taking everything into account, IRDM scores 6 out of 10 in our fundamental rating. IRDM was compared to 36 industry peers in the Diversified Telecommunication Services industry. While IRDM belongs to the best of the industry regarding profitability, 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
In the past year IRDM was profitable.
In the past year IRDM had a positive cash flow from operations.
In multiple years IRDM reported negative net income over the last 5 years.
IRDM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IRDM has a better Return On Assets (4.93%) than 75.00% of its industry peers.
IRDM has a Return On Equity of 27.94%. This is amongst the best in the industry. IRDM outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.45%, IRDM belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
IRDM had an Average Return On Invested Capital over the past 3 years of 4.17%. This is below the industry average of 6.45%.
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
The Profit Margin of IRDM (14.44%) is better than 80.56% of its industry peers.
The Operating Margin of IRDM (26.75%) is better than 94.44% of its industry peers.
In the last couple of years the Operating Margin of IRDM has grown nicely.
With an excellent Gross Margin value of 71.30%, IRDM belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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 | 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
Compared to 5 years ago, IRDM has less shares outstanding
IRDM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that IRDM is in the distress zone and has some risk of bankruptcy.
IRDM has a better Altman-Z score (0.99) than 63.89% of its industry peers.
IRDM has a debt to FCF ratio of 5.93. This is a neutral value as IRDM would need 5.93 years to pay back of all of its debts.
IRDM's Debt to FCF ratio of 5.93 is amongst the best of the industry. IRDM outperforms 80.56% of its industry peers.
IRDM has a Debt/Equity ratio of 4.02. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of IRDM (4.02) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 0.99 |
ROIC/WACC1.21
WACC7.01%
2.3 Liquidity
A Current Ratio of 2.67 indicates that IRDM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.67, IRDM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
A Quick Ratio of 1.93 indicates that IRDM should not have too much problems paying its short term obligations.
IRDM's Quick ratio of 1.93 is amongst the best of 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
Based on estimates for the next years, IRDM will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.07% on average per year.
Based on estimates for the next years, IRDM will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
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
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
With a Price/Earnings ratio of 14.64, IRDM is valued correctly.
Based on the Price/Earnings ratio, IRDM is valued a bit cheaper than 69.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. IRDM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.05, the valuation of IRDM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRDM indicates a somewhat cheap valuation: IRDM is cheaper than 69.44% 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 (34.57), we can say IRDM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 15.05 |
4.2 Price Multiples
IRDM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IRDM is cheaper than 63.89% of the companies in the same industry.
IRDM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IRDM is cheaper than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.8 | ||
| EV/EBITDA | 7.94 |
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)1.26
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
IRDM has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of IRDM has falen by -33.27%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.44, IRDM pays a bit more dividend than its industry peers.
IRDM's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| 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
IRDM pays out 49.66% 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.
DP49.66%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
16.69
-0.16 (-0.95%)
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 Cap1.77B
Revenue(TTM)871.71M
Net Income(TTM)125.85M
Analysts80
Price Target29.35 (75.85%)
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 | 14.64 | ||
| Fwd PE | 15.05 | ||
| P/S | 2.03 | ||
| P/FCF | 5.8 | ||
| P/OCF | 4.47 | ||
| P/B | 3.93 | ||
| P/tB | 6.72 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)1.14
EY6.83%
EPS(NY)1.11
Fwd EY6.64%
FCF(TTM)2.88
FCFY17.23%
OCF(TTM)3.73
OCFY22.38%
SpS8.22
BVpS4.25
TBVpS2.48
PEG (NY)1.26
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
WACC7.01%
ROIC/WACC1.21
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 14.64 and the Price/Book (PB) ratio is 3.93.
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.