Iridium Communications
Market Cap
US$3.5b
Last Updated
2020/01/21 00:25 UTC
Data Sources
Company Financials +
Executive Summary
Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.S.
Rewards
Risk Analysis
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
| IRDM | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.3% | 1.3% | 1.2% |
| 30 Day | 8.8% | -2.0% | 3.5% |
| 90 Day | 11.7% | 0.9% | 11.7% |
| 1 Year | 43.4%43.4% | 20.1%14.5% | 26.9%24.2% |
| 3 Year | 166.8%166.8% | 16.6%-0.4% | 53.0%43.2% |
| 5 Year | 196.5%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
2 weeks ago | Simply Wall St
Announcing: Iridium Communications (NASDAQ:IRDM) Stock Increased An Energizing 159% In The Last Five Years1 month ago | Simply Wall St
Does Iridium Communications Inc.'s (NASDAQ:IRDM) CEO Pay Compare Well With Peers?2 months ago | Simply Wall St
Does Iridium Communications (NASDAQ:IRDM) Have A Healthy Balance Sheet?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
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
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,000 |
| Max Price | US$22.70 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President of Government Programs |
| Shares | 44,078 |
| Max Price | US$27.14 |
| Entity | Individual |
| Role | Chief Legal Officer Chief Legal Officer & Secretary |
| Shares | 16,011 |
| Max Price | US$27.10 |
| Entity | Individual |
| Role | Head of Sales Executive Vice President of Sales & Marketing |
| Shares | 28,000 |
| Max Price | US$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
| 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 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/21 00:25 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.