DB:IDC2

Stock Analysis Report

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Executive Summary

IDT Corporation operates primarily in the telecommunications and payment industries in the United States and internationally.


Snowflake Analysis

Excellent balance sheet with poor track record.


Similar Companies

Share Price & News

How has IDT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IDC2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

IDC2

-0.4%

DE Telecom

0.2%

DE Market


1 Year Return

-43.3%

IDC2

3.6%

DE Telecom

4.5%

DE Market

Return vs Industry: IDC2 underperformed the German Telecom industry which returned 3.6% over the past year.

Return vs Market: IDC2 underperformed the German Market which returned 4.5% over the past year.


Shareholder returns

IDC2IndustryMarket
7 Day1.9%-0.4%0.2%
30 Day8.9%3.5%6.4%
90 Day17.5%19.2%16.9%
1 Year-43.3%-43.3%7.9%3.6%6.8%4.5%
3 Year-54.9%-57.3%1.6%-11.3%3.0%-5.0%
5 Year-59.2%-65.3%0.3%-18.6%9.9%-4.8%

Price Volatility Vs. Market

How volatile is IDT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is IDT undervalued compared to its fair value and its price relative to the market?

111.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate IDC2's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate IDC2's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: IDC2 is poor value based on its PE Ratio (111.3x) compared to the XE Telecom industry average (19.3x).

PE vs Market: IDC2 is poor value based on its PE Ratio (111.3x) compared to the German market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IDC2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IDC2 is overvalued based on its PB Ratio (3x) compared to the DE Telecom industry average (1.3x).


Next Steps

Future Growth

How is IDT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.1%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as IDT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has IDT performed over the past 5 years?

-59.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IDC2 has high quality earnings.

Growing Profit Margin: IDC2's current net profit margins (0.1%) are lower than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: IDC2's earnings have declined by -59.7% per year over the past 5 years.

Accelerating Growth: IDC2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IDC2 had negative earnings growth (-77.5%) over the past year, making it difficult to compare to the Telecom industry average (9.9%).


Return on Equity

High ROE: IDC2's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is IDT's financial position?


Financial Position Analysis

Short Term Liabilities: IDC2's short term assets ($291.9M) do not cover its short term liabilities ($308.5M).

Long Term Liabilities: IDC2's short term assets ($291.9M) exceed its long term liabilities ($9.5M).


Debt to Equity History and Analysis

Debt Level: IDC2 is debt free.

Reducing Debt: IDC2 has no debt compared to 5 years ago when its debt to equity ratio was 4.4%.

Debt Coverage: IDC2 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IDC2 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is IDT current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IDC2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IDC2's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IDC2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IDC2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: IDC2 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IDC2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Shmuel Jonas (39yo)

6.5yrs

Tenure

US$1,558,900

Compensation

Mr. Samuel Jonas, also known as Shmuel, has been the Chief Executive Officer of IDT Corporation since January 1, 2014. Since 2004, Mr. Jonas has been the Managing Member of Arlington Suites, LLC, Manager o ...


CEO Compensation Analysis

Compensation vs Market: Shmuel's total compensation ($USD1.56M) is above average for companies of similar size in the German market ($USD756.73K).

Compensation vs Earnings: Shmuel's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Samuel Jonas
Chief Executive Officer6.5yrsUS$1.56m0.96% $1.4m
Abilio Pereira
President8.75yrsUS$985.95k0.089% $131.1k
Marcelo Fischer
Chief Financial Officer8.75yrsUS$755.95k0.082% $119.9k
Mitch Silberman
Chief Accounting Officer & Controller14.08yrsno data0.0040% $5.9k
David Wartell
Chief Technology Officer2.33yrsUS$381.47k0.025% $37.4k
Bill Ulrey
Vice President of Investor Relations & External Affairsno datano datano data
Joyce Mason
Executive VP29.92yrsUS$410.59k0.27% $395.7k
Nadine Shea
Executive Vice President of Global Human Resources0.83yrno data0.021% $31.3k
Menachem Ash
Executive Vice President of Strategy & Legal Affairs7.75yrsUS$647.18k0.15% $217.2k
Anthony Davidson
Senior Vice President of Technologyno datano datano data
Nick Ford
President of IDT Telecomno datano datano data
Yona Katz
Chief Operating Officer of IDT Telecom20.75yrsUS$3.28mno data

7.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: IDC2's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Abilio Pereira
President8.75yrsUS$985.95k0.089% $131.1k
Howard Jonas
Chairman of the Board29.92yrsUS$252.00k0.044% $65.2k
Judah Schorr
Independent Director13.58yrsUS$76.56k0.45% $659.1k
Eric Cosentino
Lead Independent Director10.58yrsUS$126.56k0.027% $39.3k
Michael Chenkin
Independent Director6.75yrsUS$76.56k0.12% $183.1k

10.6yrs

Average Tenure

64yo

Average Age

Experienced Board: IDC2's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

IDT Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IDT Corporation
  • Ticker: IDC2
  • Exchange: DB
  • Founded: 1990
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$166.994m
  • Listing Market Cap: US$146.938m
  • Shares outstanding: 26.55m
  • Website: https://www.idt.net

Number of Employees


Location

  • IDT Corporation
  • 520 Broad Street
  • Newark
  • New Jersey
  • 7102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IDTNYSE (New York Stock Exchange)YesClass B Common StockUSUSDMay 2001
IDC2DB (Deutsche Boerse AG)YesClass B Common StockDEEURMay 2001

Biography

IDT Corporation operates primarily in the telecommunications and payment industries in the United States and internationally. The company operates in two segments, Telecom & Payment Services, and net2phone-Unified Communications as a Service. The Telecom & Payment Services Services segment offers retail telecommunication products, including international long-distance calling products primarily to foreign-born communities; wholesale international long distance traffic termination services for tier 1 fixed line and mobile network operators, as well as for other service providers; and payment offerings, such as international and domestic airtime top-up, domestic bill payment, and international money transfer services. The net2phone-Unified Communications as a Service segment provides voice over Internet protocol products and services under the net2phone brand name, including cloud-based private branch exchange (PBX) services to enterprise customers primarily through value-added resellers, service providers, telecom agents, and managed service providers; session initiation protocol trunking services, which support inbound and outbound domestic and international calling from an IP PBX; and cable telephony services. IDT Corporation was founded in 1990 and is headquartered in Newark, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:54
End of Day Share Price2020/07/14 00:00
Earnings2020/04/30
Annual Earnings2019/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.