ScoreWhy is Iridium Communications, Inc. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.48%
- Poor long term growth as Net Sales has grown by an annual rate of 8.55% and Operating profit at 53.45% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.84 times
2
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 414.12 MM
- ROCE(HY) Highest at 17.96%
- NET SALES(Q) Highest at USD 216.91 MM
3
With ROCE of 9.31%, it has a very expensive valuation with a 2.09 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -45.15%, its profits have risen by 97.7% ; the PEG ratio of the company is 0.2
4
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -45.15% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Iridium Communications, Inc. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Iridium Communications, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Iridium Communications, Inc.
-41.38%
-0.81
50.86%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.55%
EBIT Growth (5y)
53.45%
EBIT to Interest (avg)
1.13
Debt to EBITDA (avg)
3.84
Net Debt to Equity (avg)
3.39
Sales to Capital Employed (avg)
0.33
Tax Ratio
8.63%
Dividend Payout Ratio
58.42%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
4.48%
ROE (avg)
6.57%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
5.79
EV to EBIT
22.48
EV to EBITDA
11.42
EV to Capital Employed
2.09
EV to Sales
5.65
PEG Ratio
0.20
Dividend Yield
2.33%
ROCE (Latest)
9.31%
ROE (Latest)
23.95%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 414.12 MM
ROCE(HY)
Highest at 17.96%
NET SALES(Q)
Highest at USD 216.91 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 68.93%
DEBTORS TURNOVER RATIO(HY)
Highest at 9.68 times
-7What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 365.25 %
RAW MATERIAL COST(Y)
Grown by 5.21% (YoY
CASH AND EQV(HY)
Lowest at USD 130.21 MM
NET PROFIT(Q)
Lowest at USD 21.97 MM
EPS(Q)
Lowest at USD 0.2
Here's what is working for Iridium Communications, Inc.
Net Sales
Highest at USD 216.91 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Cash Flow
Highest at USD 414.12 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debtors Turnover Ratio
Highest at 9.68 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 68.93%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 52.84 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Iridium Communications, Inc.
Debt-Equity Ratio
Highest at 365.25 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Net Profit
Lowest at USD 21.97 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Profit
At USD 21.97 MM has Fallen at -29.23%
over average net sales of the previous four periods of USD 31.04 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.2
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Cash and Eqv
Lowest at USD 130.21 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 5.21% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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