21.19 USD
-0.01 (-0.05%)
21.19 USD
0 (0%)
IRDM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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
- IRDM's Return On Assets of 4.91% is fine compared to the rest of the industry. IRDM outperforms 69.44% of its industry peers.
- IRDM's Return On Equity of 27.86% is amongst the best of the industry. IRDM outperforms 94.44% of its industry peers.
- IRDM's Return On Invested Capital of 8.45% is amongst the best of the industry. IRDM outperforms 88.89% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for IRDM is below the industry average of 6.71%.
- 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 | 4.91% | ||
| ROE | 27.86% | ||
| 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 has a better Profit Margin (14.40%) than 72.22% of its industry peers.
- Looking at the Operating Margin, with a value of 26.73%, IRDM belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
- IRDM's Operating Margin has improved in the last couple of years.
- The Gross Margin of IRDM (71.30%) is better than 86.11% of its industry peers.
- IRDM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.73% | ||
| PM (TTM) | 14.4% | ||
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IRDM is still creating some value.
- The number of shares outstanding for IRDM has been reduced compared to 1 year ago.
- Compared to 5 years ago, IRDM has less shares outstanding
- Compared to 1 year ago, IRDM has a worse debt to assets ratio.
2.2 Solvency
- IRDM has an Altman-Z score of 1.11. 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 1.11, IRDM is doing good in the industry, outperforming 69.44% of the companies in the same industry.
- IRDM has a debt to FCF ratio of 5.92. This is a neutral value as IRDM would need 5.92 years to pay back of all of its debts.
- IRDM's Debt to FCF ratio of 5.92 is fine compared to the rest of the industry. IRDM outperforms 77.78% of its industry peers.
- A Debt/Equity ratio of 4.02 is on the high side and indicates that IRDM has dependencies on debt financing.
- The Debt to Equity ratio of IRDM (4.02) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 1.11 |
ROIC/WACC1.16
WACC7.31%
2.3 Liquidity
- A Current Ratio of 2.67 indicates that IRDM has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.67, IRDM belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- IRDM has a Quick Ratio of 1.93. This is a normal value and indicates that IRDM is financially healthy and should not expect problems in meeting its short term obligations.
- IRDM has a better Quick ratio (1.93) than 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%.
- IRDM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.19% yearly.
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.
- The Revenue is expected to grow by 4.46% on average over the next years.
EPS Next Y11.59%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
EPS Next 5Y17.07%
Revenue Next Year6.55%
Revenue Next 2Y4.2%
Revenue Next 3Y4.06%
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
- A Price/Earnings ratio of 18.59 indicates a rather expensive valuation of IRDM.
- Based on the Price/Earnings ratio, IRDM is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, IRDM is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 19.11, IRDM is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, IRDM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, IRDM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 19.11 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as IRDM.
- IRDM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IRDM is cheaper than 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
- IRDM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- IRDM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)N/A
EPS Next 2Y7.46%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
- IRDM has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.29, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
- On average, the dividend of IRDM grows each year by 69.07%, which is quite nice.
- IRDM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)69.07%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- IRDM pays out 50.09% 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.
DP50.09%
EPS Next 2Y7.46%
EPS Next 3Y8.01%
IRIDIUM COMMUNICATIONS INC / IRDM FAQ
What is the fundamental rating for IRDM stock?
ChartMill assigns a fundamental rating of 5 / 10 to IRDM.
What is the valuation status for IRDM stock?
ChartMill assigns a valuation rating of 5 / 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 is the valuation of IRIDIUM COMMUNICATIONS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for IRIDIUM COMMUNICATIONS INC (IRDM) is 18.59 and the Price/Book (PB) ratio is 4.93.
Can you provide the expected EPS growth for IRDM stock?
The Earnings per Share (EPS) of IRIDIUM COMMUNICATIONS INC (IRDM) is expected to grow by 11.59% in the next year.