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IDT: Future Share Repurchases Will Unlock Undervalued Earnings Power

Share Buyback And Acquisition Plans Will Drive Future Shareholder Value

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IDT
AnalystConsensusTarget
Not Invested
Published 23 Mar 2025

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
4.1%
7D
6.9%

Analysts have raised their price target on IDT to reflect modestly improved profit margin expectations and a slightly more favorable discount rate, even as they temper revenue growth assumptions and apply a lower future P/E multiple.

What's in the News

  • From August 1, 2025 to October 31, 2025, IDT repurchased 158,000 shares for 7.6 million dollars, bringing total buybacks under its January 27, 2016 authorization to approximately 3.98 million shares, or 15.58 percent of shares outstanding, for 66.28 million dollars (company filing).
  • From May 1, 2025 to July 31, 2025, IDT executed no share repurchases, leaving cumulative buybacks under the same program at about 3.82 million shares, or 14.95 percent, for 58.68 million dollars (company filing).
  • On the Fourth Quarter and Full Fiscal Year 2025 earnings call, CEO Samuel Jonas reiterated that IDT will continue to evaluate acquisitions but will avoid transactions at valuations that, in management's view, do not make financial sense (earnings call).

Valuation Changes

  • Fair Value: Unchanged at 80, indicating no revision to the intrinsic value estimate.
  • Discount Rate: Edged down slightly from 6.96 percent to 6.96 percent, reflecting a marginally more favorable risk assessment.
  • Revenue Growth: Lowered meaningfully from approximately minus 0.64 percent to about minus 1.07 percent, signaling more conservative top line expectations.
  • Net Profit Margin: Increased modestly from roughly 8.44 percent to about 8.56 percent, reflecting slightly improved profitability assumptions.
  • Future P/E: Reduced from about 24.0 times to roughly 22.8 times, indicating a somewhat more conservative valuation multiple applied to future earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.