Why is Iridium Communications, Inc. ?
1
Flat results in Mar 26
- NET PROFIT(Q) Lowest at USD 21.59 MM
- EPS(Q) Lowest at USD 0.2
2
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 55.08%, its profits have risen by 0.9% ; the PEG ratio of the company is 2.7
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.
55.08%
0.93
64.26%
S&P 500
25.41%
1.92
13.25%
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
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
4.48%
ROE (avg)
6.57%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
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%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 410.61 MM
RAW MATERIAL COST(Y)
Fallen by 0.84% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 8.35
-5What is not working for the Company
NET PROFIT(Q)
Lowest at USD 21.59 MM
EPS(Q)
Lowest at USD 0.2
Here's what is working for Iridium Communications, Inc.
Operating Cash Flow
Highest at USD 410.61 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 8.35
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by 0.84% (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 53.74 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.
Net Profit
Lowest at USD 21.59 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Profit
At USD 21.59 MM has Fallen at -24.48%
over average net sales of the previous four periods of USD 28.59 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)






