Iridium Communications
Market Cap
US$6.4b
Last Updated
2021/01/19 23:34 UTC
Data Sources
Company Financials +
Executive Summary
Iridium Communications Inc. provides mobile voice and data communications services and product to businesses, the United States and foreign governments, non-governmental organizations, and consumers worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Slightly overvalued with worrying balance sheet.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: IRDM's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
9.8%
IRDM
0.7%
US Telecom
-0.4%
US Market
1 Year Return
82.2%
IRDM
-12.2%
US Telecom
19.5%
US Market
Return vs Industry: IRDM exceeded the US Telecom industry which returned -12.2% over the past year.
Return vs Market: IRDM exceeded the US Market which returned 19.5% over the past year.
Shareholder returns
| IRDM | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.8% | 0.7% | -0.4% |
| 30 Day | 33.1% | -1.8% | 2.3% |
| 90 Day | 72.2% | 5.8% | 12.7% |
| 1 Year | 82.2%82.2% | -7.3%-12.2% | 22.3%19.5% |
| 3 Year | 279.5%279.5% | 5.2%-9.8% | 44.4%34.8% |
| 5 Year | 601.2%601.2% | 26.5%-2.2% | 128.7%103.3% |
Long-Term 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
3 weeks ago | Simply Wall St
How Much is Iridium Communications' (NASDAQ:IRDM) CEO Getting Paid?1 month ago | Simply Wall St
Introducing Iridium Communications (NASDAQ:IRDM), The Stock That Soared 321% In The Last Five Years2 months ago | Simply Wall St
Iridium Communications (NASDAQ:IRDM) Has A Pretty Healthy Balance SheetValuation
Is Iridium Communications undervalued compared to its fair value and its price relative to the market?
49.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IRDM ($48.38) is trading below our estimate of fair value ($95.69)
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 US 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 (4.6x) compared to the US Telecom industry average (1.8x).
Next Steps
Future Growth
How is Iridium Communications forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
66.3%
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 (6.8% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: IRDM's revenue (6.8% 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?
-45.6%
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 45.6% 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 (27.1%).
Return on Equity
High ROE: IRDM has a negative Return on Equity (-11.02%), as it is currently unprofitable.
Next Steps
Financial Health
How is Iridium Communications's financial position?
Financial Position Analysis
Short Term Liabilities: IRDM's short term assets ($286.5M) exceed its short term liabilities ($100.7M).
Long Term Liabilities: IRDM's short term assets ($286.5M) do not cover its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: IRDM's debt to equity ratio (113%) is considered high.
Reducing Debt: IRDM's debt to equity ratio has increased from 112.5% to 113% over the past 5 years.
Debt Coverage: IRDM's debt is not well covered by operating cash flow (14.7%).
Interest Coverage: IRDM is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Iridium Communications's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate IRDM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate IRDM'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 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
How experienced are the management team and are they aligned to shareholders interests?
9.0yrs
Average management tenure
CEO
Matt Desch (62 yo)
14.33yrs
Tenure
US$3,512,113
Compensation
Mr. Matthew J. Desch, also known as Matt, serves as the Chief Executive Officer at Iridium Satellite LLC since September 21, 2006. Mr. Desch has been the Chief Executive Officer of Iridium Communications I...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($USD3.51M) is below average for companies of similar size in the US market ($USD6.20M).
Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 14.33yrs | US$3.51m | 0.40% $ 26.0m | |
| Chief Administrative Officer | 7.42yrs | US$1.77m | 0.084% $ 5.4m | |
| COO & Director | 0.67yr | US$2.07m | 0.0093% $ 602.3k | |
| Executive Vice President of Sales & Marketing | 8.08yrs | US$1.12m | 0.029% $ 1.9m | |
| Executive Vice President of Government Programs | 8.08yrs | US$1.10m | 0.070% $ 4.5m | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal Officer & Secretary | 9.67yrs | US$1.09m | 0.081% $ 5.2m | |
| President & CEO of Aireon LLC | 9yrs | US$1.29m | no data | |
| Executive Director of NEXT Advanced Systems | no data | no data | no data | |
| VP & GM of IoT | no data | no data | no data | |
| Vice President of Corporate Law | no data | no data | no data |
9.0yrs
Average Tenure
58yo
Average Age
Experienced Management: IRDM's management team is seasoned and experienced (9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 14.33yrs | US$3.51m | 0.40% $ 26.0m | |
| Chief Administrative Officer | 7.42yrs | US$1.77m | 0.084% $ 5.4m | |
| COO & Director | 0.67yr | US$2.07m | 0.0093% $ 602.3k | |
| Independent Chairman of the Board | 11.33yrs | US$232.50k | 0.21% $ 13.5m | |
| Independent Director | 12.92yrs | US$200.00k | 0.034% $ 2.2m | |
| Member of Government Advisory Board | no data | no data | no data | |
| Independent Director | 12.92yrs | US$215.00k | 0.041% $ 2.6m | |
| Independent Director | 11.33yrs | US$190.00k | 0% $ 0 | |
| Independent Director | 11.33yrs | US$207.50k | 0.24% $ 15.5m | |
| Member of Government Advisory Board | no data | no data | no data | |
| Chairman of The Government Advisory Board | no data | no data | no data | |
| Independent Director | 9.08yrs | US$195.00k | 0% $ 0 |
11.3yrs
Average Tenure
66yo
Average Age
Experienced Board: IRDM's board of directors are seasoned and experienced ( 11.3 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
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$6.449b
- Shares outstanding: 133.30m
- Website: https://www.iridium.com
Number of Employees
Location
- Iridium Communications Inc.
- 1750 Tysons Boulevard
- Suite 1400
- McLean
- Virginia
- 22102
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IRDM | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Mar 2008 |
| 6IC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 2008 |
| 0JDO | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 2008 |
Biography
Iridium Communications Inc. provides mobile voice and data communications services and product to businesses, the United States and foreign governments, non-governmental organizations, and consumers worldw...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 23:34 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.