NASDAQ
IRDM
Last Price
US $54.85
KEY FIGURES
MKT CAP
$4.6B
EPS
TTM
$1.00
PEG
TTM
-
P/E
TTM
43.96x
P/S
TTM
5.28x
YIELD
1.38%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
22.76%
Return on equity
ROIC: 7.21%
Valuation History
44.0X
Price to Earnings
EV/EBITDA: 14.2X
Cash flow
Profit margin
8.36%
(FY vs FY)
EBITDA Y/Y
7.08%
(FY vs FY)
Cash flow Y/Y
7.27%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $54.85
-46.56%
Default assumptions
EBITDA Multiple
Fair Value
Market $54.85
-74.82%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Iridium Communications Inc. cash flow to debt ratio of 22.72% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Iridium Communications Inc.'s free cash flow has decreased -2.05% from $306.06M last year to $299.79M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Iridium Communications Inc.'s debt to equity ratio is 3.76, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Iridium Communications Inc.'s debt has increased relative to shareholder equity from 3.13 last year to 3.76 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Iridium Communications Inc. has a net debt to EBITDA ratio of 3.78x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Iridium Communications Inc.'s interest coverage ratio of 2.35 indicates that earnings with margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Iridium Communications Inc.'s profit margin has decreased (-11.23%) in the last year from 13.58% to 12.05%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Iridium Communications Inc.'s short-term assets of $276.50M exceed its short-term liabilities of $111.67M
Decreasing performance - ROA.
Iridium Communications Inc.'s return on assets of 4.17% is lower than the 5.00% threshold, indicating inefficient asset utilization
Increasing performance - Absolute return on equity.
Iridium Communications Inc.'s return on equity of 22.76%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Iridium Communications Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Iridium Communications Inc. had positive net income in 4.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Iridium Communications Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Iridium Communications Inc. has a free cash flow yield of 6.52%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Iridium Communications Inc.'s yearly earnings has increased 1.42% since last year from $112.78M to $114.37M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Iridium Communications Inc.'s yearly revenue has increased 4.93% since last year from $830.68M to $871.66M, signaling increasing performance
Increasing performance - ROIC.
ROIC 7.21% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Iridium Communications Inc.'s 3-year revenue CAGR of 6.53% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Iridium Communications Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Iridium Communications Inc. had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Iridium Communications Inc. is overvalued relative to its fair value price of 29.31 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Iridium Communications Inc. has an earnings yield of 2.29%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Iridium Communications Inc. is overvalued relative to its fair value price of 13.81 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Iridium Communications Inc. has an EV/EBITDA ratio of 14.20x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Iridium Communications Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Overvalued - P/B ratio.
Iridium Communications Inc. has a price-to-book ratio of 9.83x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Iridium Communications Inc. has a price-to-sales ratio of 5.25x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue