NasdaqGS:IRDM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Slightly overvalued with weak fundamentals.


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

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


Market Performance


7 Day Return

4.3%

IRDM

1.3%

US Telecom

1.2%

US Market


1 Year Return

43.4%

IRDM

14.5%

US Telecom

24.2%

US Market

Return vs Industry: IRDM exceeded the US Telecom industry which returned 12% over the past year.

Return vs Market: IRDM exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

IRDMIndustryMarket
7 Day4.3%1.3%1.2%
30 Day8.8%-2.0%3.5%
90 Day11.7%0.9%11.7%
1 Year43.4%43.4%20.1%14.5%26.9%24.2%
3 Year166.8%166.8%16.6%-0.4%53.0%43.2%
5 Year196.5%196.5%46.3%13.2%75.3%56.0%

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

Valuation

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

49.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRDM ($25.83) is trading below our estimate of fair value ($46.26)

Significantly Below Fair Value: IRDM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IRDM is unprofitable, so we can't compare its PE Ratio to the Telecom industry average.

PE vs Market: IRDM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IRDM is overvalued based on its PB Ratio (2.2x) compared to the US Telecom industry average (1.5x).


Next Steps

Future Growth

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

46.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRDM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IRDM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IRDM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IRDM's revenue (5.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: IRDM's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IRDM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Iridium Communications performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRDM is currently unprofitable.

Growing Profit Margin: IRDM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IRDM is unprofitable, and losses have increased over the past 5 years at a rate of -8.4% per year.

Accelerating Growth: Unable to compare IRDM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IRDM is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-43.1%).


Return on Equity

High ROE: IRDM has a negative Return on Equity (-3.96%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Iridium Communications's financial position?


Financial Position Analysis

Short Term Liabilities: IRDM's short term assets ($293.9M) do not cover its short term liabilities ($323.1M).

Long Term Liabilities: IRDM's short term assets ($293.9M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: IRDM's debt to equity ratio (118.5%) is considered high.

Reducing Debt: IRDM's debt to equity ratio has increased from 90.2% to 118.5% over the past 5 years.

Debt Coverage: IRDM's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: IRDM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: IRDM has a high level of physical assets or inventory.

Debt Coverage by Assets: IRDM's 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 vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Matt Desch (61yo)

13.3yrs

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

Compensation vs Market: Matt's total compensation ($USD3.35M) is below average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

8.0yrs

Average Tenure

57yo

Average Age

Experienced Management: IRDM's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

67yo

Average Age

Experienced Board: IRDM's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$90,78028 May 19
Parker Rush
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$22.70
SellUS$1,196,27701 May 19
Scott Scheimreif
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Government Programs
Shares44,078
Max PriceUS$27.14
SellUS$433,89830 Apr 19
Thomas Hickey
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Secretary
Shares16,011
Max PriceUS$27.10
SellUS$759,64030 Apr 19
Bryan Hartin
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales & Marketing
Shares28,000
Max PriceUS$27.13

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.9%.


Management Team

  • Tom Fitzpatrick (61yo)

    Chief Administrative Officer

    • Tenure: 6.4yrs
    • Compensation: US$1.58m
  • Matt Desch (61yo)

    CEO & Director

    • Tenure: 13.3yrs
    • Compensation: US$3.35m
  • Joe Pizzicaroli

    Executive Director of NEXT Advanced Systems

    • Don Thoma (57yo)

      President & CEO of Aireon LLC

      • Tenure: 8yrs
      • Compensation: US$1.29m
    • Scott Scheimreif (50yo)

      Executive Vice President of Government Programs

      • Tenure: 7.1yrs
    • Thomas Hickey (59yo)

      Chief Legal Officer & Secretary

      • Tenure: 8.7yrs
      • Compensation: US$1.09m
    • Bryan Hartin (55yo)

      Executive Vice President of Sales & Marketing

      • Tenure: 7.1yrs
      • Compensation: US$1.09m
    • Kenneth Levy

      Vice President of Investor Relations

      • Suzi McBride (50yo)

        Chief Operating Officer

        • Tenure: 0.9yrs
      • Tim Last

        VP & GM of IoT


        Board Members

        • Bob Niehaus (63yo)

          Chairman of the Board

          • Tenure: 10.3yrs
          • Compensation: US$210.00k
        • Tom Fitzpatrick (61yo)

          Chief Administrative Officer

          • Tenure: 6.4yrs
          • Compensation: US$1.58m
        • Matt Desch (61yo)

          CEO & Director

          • Tenure: 13.3yrs
          • Compensation: US$3.35m
        • Thomas Canfield (63yo)

          Independent Director

          • Tenure: 11.9yrs
          • Compensation: US$160.00k
        • Art Money (79yo)

          Member of Government Advisory Board

          • Parker Rush (59yo)

            Independent Director

            • Tenure: 11.9yrs
            • Compensation: US$200.00k
          • Steve Pfeiffer (72yo)

            Independent Director

            • Tenure: 10.3yrs
            • Compensation: US$175.00k
          • Buzzy Krongard (82yo)

            Independent Director

            • Compensation: US$182.50k
          • Lance Lord (72yo)

            Member of Government Advisory Board

            • John Campbell (71yo)

              Chairman of The Government Advisory Board

              Company Information

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


              Key Information

              • Name: Iridium Communications Inc.
              • Ticker: IRDM
              • Exchange: NasdaqGS
              • Founded: 2000
              • Industry: Alternative Carriers
              • Sector: Telecom
              • Market Cap: US$3.533b
              • Shares outstanding: 131.09m
              • 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

              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. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services. It also provides other services, such as inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; submarine communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and intelligence community, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the department of defense’s dedicated gateway. Further, it provides satellite handsets, personal connectivity devices, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services. Iridium Communications Inc. sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. was founded in 2000 and is headquartered in McLean, Virginia. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/21 00:25
              End of Day Share Price2020/01/17 00:00
              Earnings2019/09/30
              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.