Iridium Communications, Inc. (IRDM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ooma, Inc.

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Cambium Networks Corp.

Shenandoah Telecommunications Co. (Virginia)

EchoStar Corp.

AST Spacemobile, Inc.

Iridium Communications, Inc.

Kaleyra, Inc.

Why is Iridium Communications, Inc. ?

Negative results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 389.93
OPERATING PROFIT(Q) Lowest at USD 87.87 MM
OPERATING PROFIT MARGIN(Q) Lowest at 39.01 %

With ROCE of 11.08%, it has a very expensive valuation with a 2.16 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 100.54%, its profits have risen by 0.9% ; the PEG ratio of the company is 2.7

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Iridium Communications, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Iridium Communications, Inc.

100.54%

1.10

66.70%

S&P 500

21.51%

1.63

13.19%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.36%

EBIT Growth (5y)

46.08%

EBIT to Interest (avg)

1.13

Debt to EBITDA (avg)

3.84

Net Debt to Equity (avg)

3.39

Sales to Capital Employed (avg)

0.35

Tax Ratio

8.63%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

4.48%

ROE (avg)

6.57%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.34

EV to EBIT

19.50

EV to EBITDA

10.32

EV to Capital Employed

2.16

EV to Sales

5.28

PEG Ratio

2.67

Dividend Yield

2.51%

ROCE (Latest)

11.08%

ROE (Latest)

24.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 168.16%

RAW MATERIAL COST(Y)

Fallen by -3.58% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.56 times

DIVIDEND PER SHARE(HY)

Highest at USD 9.53

-19What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 389.93

OPERATING PROFIT(Q)

Lowest at USD 87.87 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 39.01 %

PRE-TAX PROFIT(Q)

Lowest at USD 14.31 MM

NET PROFIT(Q)

Lowest at USD 9.68 MM

EPS(Q)

Lowest at USD 0.09

Here's what is working for Iridium Communications, Inc.

Inventory Turnover Ratio

Highest at 6.56 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 9.53

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 168.16%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.58% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 53.86 MM

in the last five periods

MOJO 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.

Pre-Tax Profit

At USD 14.31 MM has Fallen at -58.83%

over average net sales of the previous four periods of USD 34.77 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 9.68 MM has Fallen at -63.32%

over average net sales of the previous four periods of USD 26.39 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 389.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 87.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 39.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 14.31 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 9.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Non Operating Income

Highest at USD 0.2 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income