IRIDIUM COMMUNICATIONS INC (IRDM) Fundamental Analysis & Valuation

NASDAQ:IRDM • US46269C1027

Current stock price

26.24 USD
+1.25 (+5%)
At close:
26.65 USD
+0.41 (+1.56%)
Pre-Market:

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

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.
  • In the past 5 years IRDM always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 4.52%, IRDM is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 24.72%, IRDM belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 8.28%, IRDM belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
  • IRDM had an Average Return On Invested Capital over the past 3 years of 5.97%. This is in line with the industry average of 5.58%.
  • 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

  • IRDM's Profit Margin of 13.12% is fine compared to the rest of the industry. IRDM outperforms 75.68% of its industry peers.
  • IRDM's Profit Margin has improved in the last couple of years.
  • The Operating Margin of IRDM (27.07%) is better than 97.30% of its industry peers.
  • IRDM's Operating Margin has improved in the last couple of years.
  • IRDM has a better Gross Margin (71.55%) 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.
  • The number of shares outstanding for IRDM has been reduced compared to 1 year ago.
  • The number of shares outstanding for IRDM has been reduced compared to 5 years ago.
  • 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

  • Based on the Altman-Z score of 1.30, we must say that IRDM is in the distress zone and has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.30, IRDM is doing good in the industry, outperforming 67.57% of the companies in the same industry.
  • The Debt to FCF ratio of IRDM is 5.87, which is a neutral value as it means it would take IRDM, 5.87 years of fcf income to pay off all of its debts.
  • IRDM has a better Debt to FCF ratio (5.87) than 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.
  • IRDM's Debt to Equity ratio of 3.80 is on the low side compared to the rest of the industry. IRDM is outperformed by 75.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 5.87
Altman-Z 1.3
ROIC/WACC1.17
WACC7.08%
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

  • IRDM has a Current Ratio of 2.48. This indicates that IRDM is financially healthy and has no problem in meeting 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.
  • IRDM's Quick ratio of 1.82 is fine compared to the rest of the industry. IRDM outperforms 75.68% of its industry peers.
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

  • IRDM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.73%, which is quite good.
  • Measured over the past years, IRDM shows a very strong growth in Earnings Per Share. The EPS has been growing by 147.63% on average per year.
  • Looking at the last year, IRDM shows a small growth in Revenue. The Revenue has grown by 4.93% in the last year.
  • The Revenue has been growing by 8.36% on average over the past years. This is quite good.
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.
  • The Revenue is expected to grow by 2.76% on average over the next years.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • 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.
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

  • Based on the Price/Earnings ratio of 24.75, the valuation of IRDM can be described as rather expensive.
  • Based on the Price/Earnings ratio, IRDM is valued a bit cheaper than 64.86% of the companies in the same industry.
  • IRDM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 23.01, the valuation of IRDM can be described as rather expensive.
  • IRDM's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 24.12. IRDM is around the same levels.
Industry RankSector Rank
PE 24.75
Fwd PE 23.01
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as IRDM.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of IRDM indicates a somewhat cheap valuation: IRDM is cheaper than 75.68% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.19
EV/EBITDA 9.9
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.
  • IRDM has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as IRDM's earnings are expected to grow with 18.41% in the coming years.
PEG (NY)3.4
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 2.38%, IRDM has a reasonable but not impressive dividend return.
  • IRDM's Dividend Yield is a higher than the industry average which is at 2.17.
  • Compared to an average S&P500 Dividend Yield of 1.91, IRDM pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.38%

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 2026 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 (3/17/2026, 8:24:40 PM)

Premarket: 26.65 +0.41 (+1.56%)

26.24

+1.25 (+5%)

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 Change5.37%
Market Cap2.75B
Revenue(TTM)871.66M
Net Income(TTM)114.37M
Analysts78.75
Price Target28.67 (9.26%)
Short Float %7.69%
Short Ratio3.17
Dividend
Industry RankSector Rank
Dividend Yield 2.38%
Yearly Dividend0.58
Dividend Growth(5Y)31.87%
DP54.96%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-16
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 24.75
Fwd PE 23.01
P/S 3.16
P/FCF 9.19
P/OCF 6.88
P/B 5.95
P/tB 9.95
EV/EBITDA 9.9
EPS(TTM)1.06
EY4.04%
EPS(NY)1.14
Fwd EY4.35%
FCF(TTM)2.86
FCFY10.89%
OCF(TTM)3.81
OCFY14.53%
SpS8.3
BVpS4.41
TBVpS2.64
PEG (NY)3.4
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 1.3
F-Score7
WACC7.08%
ROIC/WACC1.17
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 Fundamental Analysis 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 24.75 and the Price/Book (PB) ratio is 5.95.


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.