NasdaqGS:IRDM

Stock Analysis Report

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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


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

IRDM

-3.3%

US Telecom

-2.4%

US Market


1 Year Return

17.5%

IRDM

-16.8%

US Telecom

18.2%

US Market

Return vs Industry: IRDM exceeded the US Telecom industry which returned -15.7% over the past year.

Return vs Market: IRDM underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

IRDMIndustryMarket
7 Day-1.4%-3.3%-2.4%
30 Day3.4%-5.4%4.2%
90 Day8.3%-3.4%6.3%
1 Year17.5%17.5%-12.3%-16.8%20.9%18.2%
3 Year157.8%157.8%7.8%-7.8%41.2%31.8%
5 Year335.0%335.0%20.7%-6.6%84.8%63.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRDM ($28.23) is trading below our estimate of fair value ($65.84)

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 (2.7x) compared to the US Telecom industry average (1.2x).


Next Steps

Future Growth

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

71.8%

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 (6.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: IRDM's revenue (6.6% 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?

-40.5%

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 40.5% 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 (6%).


Return on Equity

High ROE: IRDM has a negative Return on Equity (-12.06%), 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 ($229.3M) exceed its short term liabilities ($101.9M).

Long Term Liabilities: IRDM's short term assets ($229.3M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: IRDM's debt to equity ratio (113.9%) is considered high.

Reducing Debt: IRDM's debt to equity ratio has increased from 109.2% to 113.9% over the past 5 years.

Debt Coverage: IRDM's debt is not well covered by operating cash flow (14.9%).

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?

8.8yrs

Average management tenure


CEO

Matt Desch (62 yo)

14.08yrs

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 ($USD3.51M) is below average for companies of similar size in the US market ($USD5.61M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Desch
CEO & Director14.08yrsUS$3.51m0.55%
$ 20.6m
Thomas Fitzpatrick
Chief Administrative Officer7.17yrsUS$1.77m0.18%
$ 6.6m
Suzanne McBride
COO & Director0.42yrUS$2.07m0.0091%
$ 339.0k
Bryan Hartin
Executive Vice President of Sales & Marketing7.83yrsUS$1.12m0.027%
$ 1.0m
Scott Scheimreif
Executive Vice President of Government Programs7.83yrsUS$1.10m0.071%
$ 2.7m
Kenneth Levy
Vice President of Investor Relationsno datano datano data
Thomas Hickey
Chief Legal Officer & Secretary9.42yrsUS$1.09m0.081%
$ 3.0m
Donald Thoma
President & CEO of Aireon LLC8.75yrsUS$1.29mno data
Joe Pizzicaroli
Executive Director of NEXT Advanced Systemsno datano datano data
Tim Last
VP & GM of IoTno datano datano data
Kathy Morgan
Vice President of Corporate Lawno datano datano data

8.8yrs

Average Tenure

58yo

Average Age

Experienced Management: IRDM's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Desch
CEO & Director14.08yrsUS$3.51m0.55%
$ 20.6m
Thomas Fitzpatrick
Chief Administrative Officer7.17yrsUS$1.77m0.18%
$ 6.6m
Suzanne McBride
COO & Director0.42yrUS$2.07m0.0091%
$ 339.0k
Robert Niehaus
Independent Chairman of the Board11.08yrsUS$232.50k0.21%
$ 7.9m
Thomas Canfield
Independent Director12.67yrsUS$200.00k0.041%
$ 1.5m
Arthur Money
Member of Government Advisory Boardno datano datano data
Parker Rush
Independent Director12.67yrsUS$215.00k0.041%
$ 1.5m
Steven Pfeiffer
Independent Director11.08yrsUS$190.00k0%
$ 0
Alvin Krongard
Independent Director11.08yrsUS$207.50k0.22%
$ 8.3m
Lance Lord
Member of Government Advisory Boardno datano datano data
John Campbell
Chairman of The Government Advisory Boardno datano datano data
Eric Olson
Independent Directorno dataUS$195.00k0%
$ 0

11.1yrs

Average Tenure

66yo

Average Age

Experienced Board: IRDM's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: IRDM insiders have only sold shares 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$3.741b
  • Shares outstanding: 132.53m
  • 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 and product to businesses, the United States and foreign governments, non-governmental organizations, and consumers worldw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:29
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.