IDT (IDT) AI Stock Analysis

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IDT

(NYSE:IDT)

75Outperform

IDT Corporation's overall stock score reflects strong financial stability and operational performance, underscored by robust earnings call outcomes. The company shows efficient capital management and impressive profitability margins. However, technical indicators suggest cautious optimism due to potential overbought conditions. Valuation remains fair, though dividend yield is modest. The earnings call highlights ongoing growth, countered by some operational cash flow concerns.

IDT (IDT) vs. S&P 500 (SPY)

Market Cap

$1.22B

Dividend Yield0.45%

Average Volume (3M)138.54K

Price to Earnings (P/E)15.4

Beta (1Y)0.65

Revenue Growth1.75%

EPS Growth116.54%

CountryUS

Employees1,820

SectorCommunication Services

Sector Strength98

IndustryTelecommunications Services

Share Statistics

EPS (TTM)3.15

Shares Outstanding23,641,466

10 Day Avg. Volume116,998

30 Day Avg. Volume138,544

Financial Highlights & Ratios

PEG Ratio0.13

Price to Book (P/B)N/A

Price to Sales (P/S)1.04

Price to Cash Flow (P/CF)15.80

P/FCF Ratio15.10

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

IDT Business Overview & Revenue Model

Company DescriptionIDT Corporation is a multinational provider of telecommunications and payment services. Headquartered in Newark, New Jersey, the company operates in several sectors including communications, financial services, and energy. Its core products and services include international calling services, mobile top-up solutions, payment services, and wholesale carrier services. IDT is known for its innovative solutions that cater to both individual consumers and businesses, aiming to simplify and enhance connectivity and financial transactions across the globe.

How the Company Makes MoneyIDT Corporation makes money primarily through a diverse set of revenue streams. The company generates significant income from its telecommunications services, which include prepaid and postpaid international calling and mobile top-up services. These services cater to a wide range of customers, including individuals and businesses seeking reliable and cost-effective communication solutions. Additionally, IDT earns revenue through its payment services, which facilitate international money transfers and payment processing. The company also operates a wholesale carrier business, providing voice termination services to telecom operators worldwide. Strategic partnerships and collaborations with global telecom providers and financial institutions further bolster IDT's earnings by expanding its service reach and enhancing its product offerings.

IDT Financial Statement Overview

Summary

IDT Corporation demonstrates strong financial performance across all statements. The income statement reflects healthy profitability margins and steady revenue growth. The balance sheet is robust with low leverage and high return on equity, while the cash flow statement shows consistent cash generation capabilities. The company's financial health is solid, with strengths in profitability and capital management, but potential risks in revenue volatility and cash flow fluctuations.

Income Statement

Positive

The income statement shows a positive trajectory in profitability, with a notable net profit margin of 8.99% for the TTM (Trailing-Twelve-Months). The gross profit margin stands at 33.98%, indicating efficient cost management. Revenue has slightly increased by 1.3% compared to the previous period, suggesting moderate growth. EBIT and EBITDA margins are also healthy at 7.17% and 7.88% respectively, reflecting strong operational performance. However, there is a slight concern over the fluctuating revenue growth in past years.

Balance Sheet

Very Positive

The balance sheet reveals a strong equity position with an equity ratio of 47.16% and a low debt-to-equity ratio of 0.005, indicating financial stability and low leverage risk. Return on equity has improved significantly to 40.42%, suggesting efficient use of shareholder capital. The company maintains a solid asset base with adequate liquidity. Overall, the balance sheet reflects robust financial health with minimal debt concerns.

Cash Flow

Positive

The cash flow statement highlights a robust free cash flow generation, with a growth rate of -34.79% compared to the previous period, though the free cash flow remains positive. The operating cash flow to net income ratio is 0.54, indicating a reasonable conversion of income into cash flow. The free cash flow to net income ratio is 0.35, showing a healthy cash flow relative to earnings. Despite the decline in free cash flow growth, the overall cash flow situation remains stable.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
1.22B	1.21B	1.24B	1.36B	1.45B	1.35B
	Gross Profit
415.18M	390.16M	363.12M	329.63M	292.94M	261.76M
	EBIT
87.54M	64.75M	60.74M	60.09M	56.99M	24.95M
	EBITDA
96.31M	82.26M	80.94M	53.00M	82.99M	38.12M
	Net Income Common Stockholders
79.89M	64.45M	40.49M	27.03M	96.47M	21.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
227.46M	193.00M	152.25M	137.75M	163.59M	109.19M
	Total Assets
532.85M	550.10M	510.81M	497.09M	512.65M	404.75M
	Total Debt
39.24M	1.53M	2.88M	4.61M	5.47M	7.35M
	Net Debt
-187.64M	-163.02M	-100.76M	-93.75M	-101.67M	-77.51M
	Total Liabilities
331.25M	283.54M	300.34M	316.27M	346.04M	333.61M
	Stockholders Equity
199.76M	246.18M	193.73M	167.62M	164.86M	74.77M
Cash Flow		Free Cash Flow
38.65M	59.27M	32.18M	7.53M	49.85M	-45.63M
	Operating Cash Flow
58.78M	78.19M	54.14M	29.41M	66.62M	-29.59M
	Investing Cash Flow
-12.69M	-748.00K	-33.46M	-33.78M	-44.06M	-32.46M
	Financing Cash Flow
-28.22M	-17.23M	-15.81M	-15.62M	-4.52M	-5.65M

IDT Technical Analysis

Technical Analysis Sentiment

Negative

Last Price48.52

Price Trends

50DMA

49.04

Negative

100DMA

48.99

Negative

200DMA

44.31

Positive

Market Momentum

MACD

1.05

Negative

RSI

61.66

Neutral

STOCH

71.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDT, the sentiment is Negative. The current price of 48.52 is below the 20-day moving average (MA) of 50.22, below the 50-day MA of 49.04, and above the 200-day MA of 44.31, indicating a neutral trend. The MACD of 1.05 indicates Negative momentum. The RSI at 61.66 is Neutral, neither overbought nor oversold. The STOCH value of 71.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IDT.

IDT Risk Analysis

IDT disclosed 73 risk factors in its most recent earnings report. IDT reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

IDT Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	75 Outperform	$1.22B	15.41	33.05%	0.45%	1.75%	116.54%
BOC	61 Neutral	$448.72M	―	-0.24%	―	12.49%	82.27%
Sector *	58 Neutral	$27.01B	3.11	-10.53%	4.44%	2.30%	-43.13%
SBGI	56 Neutral	$883.38M	2.83	71.43%	7.48%	13.21%	―
GOGO	56 Neutral	$931.27M	67.00	24.98%	―	11.85%	-90.54%
CABO	56 Neutral	$1.41B	97.38	0.80%	4.70%	-5.87%	-93.49%
ATUS	51 Neutral	$1.13B	―	21.93%	―	-3.06%	-290.86%

* Communication Services Sector Average

Performance Comparison

IDT

48.52

11.48

30.99%

SBGI

Sinclair Broadcast

14.14

2.62

22.74%

GOGO

Gogo

7.66

-1.16

-13.15%

CABO

Cable ONE

265.63

-107.47

-28.80%

ATUS

Altice Usa

2.45

0.15

6.52%

BOC

Boston Omaha

14.29

-1.50

-9.50%

IDT Earnings Call Summary

Earnings Call Date: Mar 6, 2025 | % Change Since: 5.18% | Next Earnings Date: Jun 4, 2025

Earnings Call Sentiment Positive

IDT demonstrated strong financial performance with record profits and growth across key segments like NRS and BOSS Money. However, challenges such as reduced cash flow from operations and currency translation impacts were noted. The overall sentiment is positive due to the significant achievements and growth outlook.

Highlights

Record Levels of Gross Profit and Adjusted EBITDA

IDT generated record levels of gross profit income from operations and adjusted EBITDA, indicating strong financial performance.

NRS Revenue Growth

NRS had an exceptional quarter with 32% recurring revenue growth and adjusted EBITDA exceeding $10 million.

BOSS Money Transaction Growth

BOSS Money recorded an all-time high transaction volume of 5.7 million, with over 30% year-over-year growth in both transactions and revenue in February.

net2phone Expansion

net2phone continued its expansion with a 14% increase in subscription revenue on a constant currency basis, despite currency translation headwinds.

Increased Stock Repurchases and Dividend

IDT increased its regular quarterly dividend by 20% and repurchased over 179,000 shares for $8.5 million, indicating strong shareholder returns.

Lowlights

Cash Flow from Operations Decline

Operating cash generation was only $7 million compared to $25 million the previous year, attributed to the timing of cash prefunding for BOSS Money.

Currency Translation Impact

net2phone's revenue growth was impacted by foreign exchange translation, masking the strength of its underlying performance.

Company Guidance

During IDT Corporation's Second Quarter Fiscal Year 2025 earnings call, management highlighted several key metrics demonstrating strong financial performance. The company reported record levels of gross profit, income from operations, and adjusted EBITDA. NRS achieved a 32% growth in recurring revenue with adjusted EBITDA exceeding $10 million, while maintaining $310 in recurring revenue per terminal. BOSS Money set an all-time record with 5.7 million transaction volumes and digital transactions representing over 80% of all remittances, driving a 35% increase in the Fintech segment's gross profit to $22 million. Net2phone's subscription revenue increased by 14% on a constant currency basis, despite foreign exchange challenges. The traditional communications segment's adjusted EBITDA surpassed $20 million for the first time since fiscal 2022, reflecting a 19% year-over-year increase. Additionally, IDT Corporation enhanced shareholder returns through stock repurchases of over 179,000 shares and increased the regular quarterly dividend by 20%. The company remains on track for approximately 40% adjusted EBITDA growth for fiscal 2025, building on the previous year's record of $90 million.

IDT Corporate Events

Executive/Board ChangesShareholder MeetingsDividends

IDT Corporation Announces 2024 Dividend and Board Decisions

Neutral

Dec 13, 2024

IDT Corporation held its 2024 Annual Meeting of Stockholders on December 12, 2024, where stockholders elected board nominees and approved executive compensation-related proposals. Additionally, the company declared a quarterly cash dividend of $0.05 per share, payable on December 31, 2024, to stockholders of record as of December 23, 2024.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.