IRIDIUM COMMUNICATIONS INC (IRDM) Fundamental Analysis & Valuation

NASDAQ:IRDM • US46269C1027

24.24 USD
+0.23 (+0.96%)
At close: Mar 9, 2026
24.1518 USD
-0.09 (-0.36%)
After Hours: 3/9/2026, 8:13:21 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to IRDM. IRDM was compared to 37 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. IRDM Profitability Analysis

1.1 Basic Checks

  • IRDM had positive earnings in the past year.
  • 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's Return On Assets of 4.52% is fine compared to the rest of the industry. IRDM outperforms 67.57% of its industry peers.
  • Looking at the Return On Equity, with a value of 24.72%, IRDM belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
  • IRDM's Return On Invested Capital of 8.28% is amongst the best of the industry. IRDM outperforms 89.19% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for IRDM is in line with the industry average of 5.74%.
  • The last Return On Invested Capital (8.28%) for IRDM is above the 3 year average (5.97%), which is a sign of increasing profitability.
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

  • Looking at the Profit Margin, with a value of 13.12%, IRDM is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
  • IRDM's Profit Margin has improved in the last couple of years.
  • IRDM's Operating Margin of 27.07% is amongst the best of the industry. IRDM outperforms 97.30% of its industry peers.
  • IRDM's Operating Margin has improved in the last couple of years.
  • The Gross Margin of IRDM (71.55%) is better than 86.49% of its industry peers.
  • IRDM's Gross Margin has been stable in the last couple of years.
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

More info and screens

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.
  • Compared to 1 year ago, IRDM has less shares outstanding
  • Compared to 5 years ago, IRDM has less shares outstanding
  • Compared to 1 year ago, IRDM has a worse debt to assets ratio.
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 1.24. This is a bad value and indicates that IRDM is not financially healthy and even has some risk of bankruptcy.
  • IRDM has a better Altman-Z score (1.24) than 70.27% of its industry peers.
  • IRDM has a debt to FCF ratio of 5.87. This is a neutral value as IRDM would need 5.87 years to pay back of all of its debts.
  • IRDM's Debt to FCF ratio of 5.87 is amongst the best of the industry. IRDM outperforms 81.08% of its industry peers.
  • IRDM has a Debt/Equity ratio of 3.80. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of IRDM (3.80) is worse than 75.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 5.87
Altman-Z 1.24
ROIC/WACC1.19
WACC6.95%
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.
  • With an excellent Current ratio value of 2.48, IRDM belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
  • IRDM has a Quick Ratio of 1.82. This is a normal value and indicates that IRDM is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.82, IRDM is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
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

More info and screens

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

5

3. IRDM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.73% over the past year.
  • The Earnings Per Share has been growing by 147.63% on average over the past years. This is a very strong growth
  • The Revenue has been growing slightly by 4.93% in the past year.
  • Measured over the past years, IRDM shows a quite strong growth in Revenue. The Revenue has been growing by 8.36% on average per year.
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.
  • Based on estimates for the next years, IRDM will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y7.29%
EPS Next 2Y9.87%
EPS Next 3Y18.41%
EPS Next 5Y15.37%
Revenue Next Year0.87%
Revenue Next 2Y1.56%
Revenue Next 3Y2.03%
Revenue Next 5Y2.76%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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

More info and screens

Find the best growth stocksShow best growing peers

4

4. IRDM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.87, which indicates a rather expensive current valuation of IRDM.
  • 64.86% of the companies in the same industry are more expensive than IRDM, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.46, IRDM is valued at the same level.
  • A Price/Forward Earnings ratio of 21.25 indicates a rather expensive valuation of IRDM.
  • Based on the Price/Forward Earnings ratio, IRDM is valued a bit cheaper than 62.16% of the companies in the same industry.
  • IRDM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.65.
Industry RankSector Rank
PE 22.87
Fwd PE 21.25
IRDM Price Earnings VS Forward Price EarningsIRDM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • IRDM's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of IRDM indicates a somewhat cheap valuation: IRDM is cheaper than 78.38% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.49
EV/EBITDA 9.43
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 an expensive valuation of the company.
  • 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)3.14
PEG (5Y)N/A
EPS Next 2Y9.87%
EPS Next 3Y18.41%

More info and screens

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

4

5. IRDM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.42%, IRDM has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.13, IRDM pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, IRDM pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.42%

5.2 History

  • On average, the dividend of IRDM grows each year by 31.87%, 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)31.87%
Div Incr Years1
Div Non Decr Years1
IRDM Yearly Dividends per shareIRDM Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 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

More info and screens

Find the best dividend stocksShow peers with best dividend

IRDM Fundamentals: All Metrics, Ratios and Statistics

IRIDIUM COMMUNICATIONS INC

NASDAQ:IRDM (3/9/2026, 8:13:21 PM)

After market: 24.1518 -0.09 (-0.36%)

24.24

+0.23 (+0.96%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-12
Earnings (Next)04-20
Inst Owners92.61%
Inst Owner Change-8.76%
Ins Owners2.68%
Ins Owner Change5.4%
Market Cap2.54B
Revenue(TTM)871.66M
Net Income(TTM)114.37M
Analysts78.75
Price Target28.67 (18.28%)
Short Float %9.65%
Short Ratio3.52
Dividend
Industry RankSector Rank
Dividend Yield 2.42%
Yearly Dividend0.58
Dividend Growth(5Y)31.87%
DP54.96%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)9.17%
PT rev (3m)-2.32%
EPS NQ rev (1m)12.63%
EPS NQ rev (3m)12.63%
EPS NY rev (1m)2.88%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-0.78%
Valuation
Industry RankSector Rank
PE 22.87
Fwd PE 21.25
P/S 2.92
P/FCF 8.49
P/OCF 6.36
P/B 5.5
P/tB 9.19
EV/EBITDA 9.43
EPS(TTM)1.06
EY4.37%
EPS(NY)1.14
Fwd EY4.71%
FCF(TTM)2.86
FCFY11.78%
OCF(TTM)3.81
OCFY15.72%
SpS8.3
BVpS4.41
TBVpS2.64
PEG (NY)3.14
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 1.24
F-Score7
WACC6.95%
ROIC/WACC1.19
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 Year0.87%
Revenue Next 2Y1.56%
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 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 4 / 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 8 / 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 22.87 and the Price/Book (PB) ratio is 5.5.


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 7.29% in the next year.