IDT (IDT) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: 0.4%
• Average Volume (3M): 111.62K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.58
• Revenue Growth: 1.75%
• EPS Growth: 116.54%
• Country: US
• Employees: 1,820
• Sector: Communication Services
• Sector Strength: 81
• Industry: Telecommunications Services
• EPS (TTM): 3.15
• Shares Outstanding: 23,641,466
• 10 Day Avg. Volume: 91,159
• 30 Day Avg. Volume: 111,624
• PEG Ratio: 0.14
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.42
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

IDT Corporation's robust financial performance, highlighted by strong profitability and balance sheet stability, is a key strength. The positive sentiment from the earnings call, driven by record profits and strategic growth, further enhances the outlook. Technical indicators present a mixed picture, suggesting a need for cautious optimism. Valuation metrics show the stock is fairly priced, offering moderate appeal. Overall, IDT presents a solid investment proposition with some areas warranting closer monitoring, particularly cash flow and market momentum.

IDT Business Overview & Revenue Model

Company Description

IDT Corporation operates in the communications and payment industries in the United States and internationally. The company operates through three segments: Fintech; net2phone-UCaaS (Unified Communications as a Service); and Traditional Communications. The Fintech segment offers international money remittance and related value/payment transfer services under the BOSS Revolution brand name; national retail solutions, such as point of sale network providing payment processing, digital advertising, transaction data, and ancillary services under the NRS brand name. The net2phone-UCaaS segment provides net2phone-UCaaS, a cloud communications service for businesses; and cable telephony services under the net2phone brand name. The Traditional Communications segment, which include Mobile Top-Up, that enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts; BOSS Revolution Calling, an international long-distance calling service; Carrier Services, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and net2phone-Platform Services, which offer telephony services to cable operators and others, as well as smaller communications and payments offerings. IDT Corporation was founded in 1990 and is headquartered in Newark, New Jersey.

How the Company Makes Money

IDT 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

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

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

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.

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

IDT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDT, the sentiment is Positive. The current price of 52.44 is above the 20-day moving average (MA) of 49.04, above the 50-day MA of 49.46, and above the 200-day MA of 45.39, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 63.51 is Neutral, neither overbought nor oversold. The STOCH value of 93.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IDT.

IDT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	77 Outperform	$1.32B	16.66	33.05%	0.40%	1.75%	116.54%
BOC	64 Neutral	$484.83M	―	-0.24%	―	12.49%	82.27%
Sector *	59 Neutral	$13.76B	7.65	-2.18%	3.85%	2.32%	-36.56%
SBGI	58 Neutral	$1.07B	3.27	71.43%	6.53%	13.21%	―
CABO	58 Neutral	$858.25M	59.21	-1.12%	7.74%	-5.87%	-93.49%
GOGO	54 Neutral	$1.02B	78.95	24.98%	―	11.85%	-90.54%
ATUS	52 Neutral	$1.07B	―	21.93%	―	-3.06%	-290.86%

IDT Corporate Events

IDT Corporation Announces 2024 Dividend and Board Decisions

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.