Iridium Communications (NASDAQ:IRDM) Will Be Hoping To Turn Its Returns On Capital Around
Oct 02
U.S. Telecom Sector Analysis
UpdatedOct 03, 2023
DataAggregated Company Financials
Companies570
- 7D1.2%
- 3M2.8%
- 1Y29.3%
- YTD33.9%
In the last week, the Telecom industry is up 1.2%, with Alphabet up 2.3%. This takes the industry's 12 month performance to a gain of 29%. As for the next few years, earnings are expected to grow by 19% per annum.
Sector Valuation and Performance
Has the U.S. Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 03 Oct 2023 | US$4.2t | US$1.5t | US$104.7b | 14x | 40.3x | 2.8x |
| Thu, 31 Aug 2023 | US$4.3t | US$1.5t | US$104.3b | 14.2x | 41.6x | 2.9x |
| Sat, 29 Jul 2023 | US$4.3t | US$1.5t | US$110.7b | 15.9x | 38.8x | 2.9x |
| Mon, 26 Jun 2023 | US$4.1t | US$1.5t | US$107.1b | 16.9x | 38.3x | 2.8x |
| Wed, 24 May 2023 | US$4.0t | US$1.5t | US$106.1b | 17.3x | 37.5x | 2.7x |
| Fri, 21 Apr 2023 | US$3.7t | US$1.5t | US$115.6b | 16.8x | 32.3x | 2.5x |
| Sun, 19 Mar 2023 | US$3.6t | US$1.5t | US$115.3b | 16.7x | 31.3x | 2.4x |
| Tue, 14 Feb 2023 | US$3.6t | US$1.5t | US$124.5b | 19.7x | 28.9x | 2.4x |
| Thu, 12 Jan 2023 | US$3.4t | US$1.5t | US$166.4b | 17.1x | 20.4x | 2.3x |
| Sat, 10 Dec 2022 | US$3.3t | US$1.5t | US$166.5b | 15.7x | 19.7x | 2.2x |
| Mon, 07 Nov 2022 | US$3.0t | US$1.5t | US$164.7b | 17.1x | 18.4x | 2x |
| Wed, 05 Oct 2022 | US$3.4t | US$1.5t | US$187.6b | 15.4x | 18.4x | 2.3x |
| Fri, 02 Sep 2022 | US$3.7t | US$1.5t | US$187.8b | 15.9x | 19.8x | 2.5x |
| Sun, 31 Jul 2022 | US$3.8t | US$1.5t | US$204.9b | 16.6x | 18.6x | 2.6x |
| Tue, 28 Jun 2022 | US$4.5t | US$1.5t | US$214.0b | 17.7x | 20.9x | 3x |
| Thu, 26 May 2022 | US$4.4t | US$1.5t | US$218.1b | 17.4x | 20x | 3x |
| Sat, 23 Apr 2022 | US$4.2t | US$1.4t | US$221.6b | 19.1x | 18.7x | 2.9x |
| Mon, 21 Mar 2022 | US$4.7t | US$1.4t | US$225.7b | 18.5x | 20.8x | 3.3x |
| Wed, 16 Feb 2022 | US$4.9t | US$1.4t | US$222.6b | 19.9x | 21.9x | 3.4x |
| Fri, 14 Jan 2022 | US$5.3t | US$1.4t | US$194.7b | 20x | 27.2x | 3.8x |
| Sun, 12 Dec 2021 | US$5.5t | US$1.4t | US$194.5b | 20.6x | 28.4x | 3.9x |
| Tue, 09 Nov 2021 | US$5.8t | US$1.4t | US$198.2b | 23.4x | 29.5x | 4.2x |
| Thu, 07 Oct 2021 | US$5.7t | US$1.3t | US$179.3b | 24.4x | 32.1x | 4.3x |
| Sat, 04 Sep 2021 | US$6.1t | US$1.3t | US$179.9b | 23.3x | 33.7x | 4.5x |
| Mon, 02 Aug 2021 | US$5.8t | US$1.3t | US$179.8b | 26.2x | 32.1x | 4.3x |
| Thu, 06 May 2021 | US$5.5t | US$1.3t | US$130.3b | 27x | 42.2x | 4.4x |
| Sun, 07 Feb 2021 | US$4.8t | US$1.2t | US$96.6b | 26.5x | 49.3x | 3.9x |
| Sat, 31 Oct 2020 | US$4.1t | US$1.2t | US$107.4b | 18.9x | 38.2x | 3.5x |
Price to Earnings Ratio
37.2x
Current Industry PE
- Investors are optimistic on the American Communication Services industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 40.3x which is higher than its 3-year average PE of 31.3x.
- The 3-year average PS ratio of 3.3x is higher than the industry's current PS ratio of 2.8x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 8.2% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the U.S. Telecom sector?
| US Market | -1.09% | |
| Telecom | 1.17% | |
| Interactive Media and Services | 2.16% | |
| Entertainment | 0.72% | |
| Media | -0.17% | |
| Wireless Telecom | -0.45% | |
| Telecom Services and Carriers | -3.50% | |
Industry PE
- Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio of 426x.
- Analysts are expecting annual earnings growth of 28.7%, which is higher than its past year's earnings growth of 13.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 29% over the next 5 years.
- This is better than its past earnings growth rate of 13% per year.
- In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 17% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| GOOGL Alphabet | US$134.17 | 2.3% +US$38.7b | 36.0% | PE27.8x | |
| META Meta Platforms | US$306.82 | 2.0% +US$15.4b | 121.4% | PE35x | |
| SE Sea | US$43.95 | 9.3% +US$2.1b | -20.5% | PE91.9x | |
| TTD Trade Desk | US$78.31 | 4.3% +US$1.6b | 28.1% | PE296.8x | |
| RBLX Roblox | US$28.68 | 9.7% +US$1.6b | -21.2% | PS7.3x |
