NasdaqGS:IRDM.B

Stock Analysis Report

Executive Summary

Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.S.

Snowflake

Fundamentals

Fair value with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-7.3%

IRDM.B

-0.0001%

US Telecom

-0.6%

US Market


1 Year Return

n/a

IRDM.B

8.1%

US Telecom

0.7%

US Market

No trading data on IRDM.B.

No trading data on IRDM.B.


Share holder returns

IRDM.BIndustryMarket
7 Day-7.3%-0.0001%-0.6%
30 Day-11.6%6.3%2.9%
90 Day20.5%10.0%1.3%
1 Yearn/a13.9%8.1%2.9%0.7%
3 Year199.2%167.4%15.7%-1.1%44.6%35.2%
5 Year228.9%166.8%36.3%5.1%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Iridium Communications undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Iridium Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).

Iridium Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Iridium Communications is loss making, we can't compare its value to the US Telecom industry average.

Iridium Communications is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Iridium Communications, we can't assess if its growth is good value.


Price Based on Value of Assets

Iridium Communications is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Iridium Communications expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

48.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Iridium Communications's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

Iridium Communications is not considered high growth as it is expected to be loss making for the next 1-3 years.

Iridium Communications's revenue growth is expected to exceed the United States of America market average.

Unable to compare Iridium Communications's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Iridium Communications's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Iridium Communications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Iridium Communications performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Iridium Communications does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Iridium Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Iridium Communications's 1-year growth to the US Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Iridium Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Iridium Communications used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Iridium Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Iridium Communications's financial position?


Financial Position Analysis

Iridium Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Iridium Communications's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Iridium Communications's level of debt (125.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (111% vs 125.7% today).

Debt is not well covered by operating cash flow (12.7%, less than 20% of total debt).

Iridium Communications is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is Iridium Communications's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Iridium Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Iridium Communications's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Iridium Communications has not reported any payouts.

Unable to verify if Iridium Communications's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Iridium Communications has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Iridium Communications's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Matt Desch (60yo)

12.7yrs

Tenure

US$3,348,524

Compensation

Mr. Matthew J. Desch, also known as Matt, serves as the Chief Executive Officer at Iridium Satellite LLC since September 21, 2006. Mr. Desch has been the Chief Executive Officer of Iridium Communications I ...


CEO Compensation Analysis

Matt's remuneration is lower than average for companies of similar size in United States of America.

Matt's compensation has increased whilst company is loss making.


Management Age and Tenure

7.3yrs

Average Tenure

56yo

Average Age

The average tenure for the Iridium Communications management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.7yrs

Average Tenure

66yo

Average Age

The tenure for the Iridium Communications board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Tom Fitzpatrick (60yo)

    Chief Administrative Officer

    • Tenure: 5.8yrs
    • Compensation: US$1.58m
  • Matt Desch (60yo)

    CEO & Director

    • Tenure: 12.7yrs
    • Compensation: US$3.35m
  • Joe Pizzicaroli

    Executive Director of NEXT Advanced Systems

    • Tenure: 0yrs
  • Don Thoma (56yo)

    President & CEO of Aireon LLC

    • Tenure: 7.3yrs
    • Compensation: US$1.29m
  • Scott Scheimreif (49yo)

    Executive Vice President of Government Programs

    • Tenure: 6.4yrs
  • Thomas Hickey (58yo)

    Chief Legal Officer & Secretary

    • Tenure: 8yrs
    • Compensation: US$1.09m
  • Bryan Hartin (54yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 6.4yrs
    • Compensation: US$1.09m
  • Kenneth Levy

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Suzi McBride (49yo)

    Chief Operating Officer

    • Tenure: 0.3yrs
  • Tim Last

    VP & GM of IoT

    • Tenure: 0yrs

Board Members

  • Bob Niehaus (62yo)

    Chairman of the Board

    • Tenure: 9.7yrs
    • Compensation: US$210.00k
  • Tom Fitzpatrick (60yo)

    Chief Administrative Officer

    • Tenure: 5.8yrs
    • Compensation: US$1.58m
  • Matt Desch (60yo)

    CEO & Director

    • Tenure: 12.7yrs
    • Compensation: US$3.35m
  • Thomas Canfield (62yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$160.00k
  • Art Money (78yo)

    Member of Government Advisory Board

    • Tenure: 0yrs
  • Parker Rush (58yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$200.00k
  • Steve Pfeiffer (71yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$175.00k
  • Buzzy Krongard (81yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$182.50k
  • Lance Lord (71yo)

    Member of Government Advisory Board

    • Tenure: 0yrs
  • John Campbell (70yo)

    Chairman of The Government Advisory Board

    • Tenure: 0yrs

Company Information

Iridium Communications Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Iridium Communications Inc.
  • Ticker: IRDM.B
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$2.829b
  • Shares outstanding: 113.24m
  • Website: https://www.iridium.com

Number of Employees


Location

  • Iridium Communications Inc.
  • 1750 Tysons Boulevard
  • Suite 1400
  • McLean
  • Virginia
  • 22102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRDMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2008
6ICDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2008
0JDOLSE (London Stock Exchange)YesCommon StockGBUSDMar 2008
IRII.ZOTCUS (Other "Grey Market" OTC)PERP PFD CONV AUSUSDOct 2012
IRDM.BNasdaqGS (Nasdaq Global Select)PERP PFD CNV BUSUSDMay 2014

Biography

Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/05/16 02:38
End of Day Share Price2019/05/14 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.