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IDT Corp (IDT)
NYSE:IDT
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IDT
(NYSE:IDT)
Rating:77Outperform
Price Target:―
IDT (IDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.54B
Dividend Yield0.34%
Average Volume (3M)122.13K
Price to Earnings (P/E)19.4
Beta (1Y)0.61
Revenue Growth1.75%
EPS Growth116.54%
CountryUS
Employees1,820
SectorCommunication Services
Sector Strength86
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.84
Shares Outstanding23,641,466
10 Day Avg. Volume159,335
30 Day Avg. Volume122,127
Financial Highlights & Ratios
PEG Ratio2.03
Price to Book (P/B)4.90
Price to Sales (P/S)0.00
P/FCF Ratio34.53
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 telecommunications company that primarily operates in the telecommunications and payment services sectors. The company's core services include international long-distance calling, mobile top-up services, and payment transfer solutions. IDT offers a variety of communication services to both consumers and businesses, leveraging its established global network to facilitate international connectivity.
How the Company Makes MoneyIDT Corporation generates revenue through multiple streams, primarily from its telecommunications services and payment solutions. The company earns money by providing international long-distance calling services, which are monetized through customer subscriptions and usage fees. Additionally, IDT offers mobile top-up services that allow users to add credit to prepaid mobile phones across different countries, generating income from transaction fees and commissions. The company's payment transfer services are another significant revenue source, facilitating money transfers across borders and earning fees for each transaction. Key partnerships with telecommunication providers and financial institutions enhance IDT's service offerings and expand its market reach, contributing to its overall revenue.
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.75
Positive
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.82
Very Positive
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.78
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| 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 | ||||
| 247.71M | 193.00M | 152.25M | 137.75M | 163.59M | 109.19M | Total Assets |
| 575.73M | 550.10M | 510.81M | 497.09M | 512.65M | 404.75M | Total Debt |
| 1.35M | 1.53M | 2.88M | 4.61M | 5.47M | 7.35M | Net Debt |
| -246.36M | -163.02M | -100.76M | -93.75M | -101.67M | -77.51M | Total Liabilities |
| 280.63M | 283.54M | 300.34M | 316.27M | 346.04M | 333.61M | Stockholders Equity |
| 271.60M | 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
Positive
60.96
Price Trends
51.99
Positive
49.90
Positive
46.82
Positive
Market Momentum
3.04
Negative
75.35
Negative
82.38
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 60.96 is above the 20-day moving average (MA) of 55.37, above the 50-day MA of 51.99, and above the 200-day MA of 46.82, indicating a bullish trend. The MACD of 3.04 indicates Negative momentum. The RSI at 75.35 is Negative, neither overbought nor oversold. The STOCH value of 82.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 2 New Risks
1.
We may incur costs in complying with, or face exposure from the failure to comply with, laws, regulation or initiatives regarding greenhouse gas emissions or reporting of our direct and indirect emissions. Q4, 2024
2.
Changes to immigrant populations could negatively impact certain of our businesses. Q4, 2024
IDT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.54B | 19.37 | 33.05% | 0.34% | 1.75% | 116.54% | |
70 Neutral | $1.43B | 76.11 | -6.47% | ― | 41.51% | -103.22% | |
67 Neutral | $983.05M | 7.15 | 34.07% | 7.13% | 11.62% | ― | |
60 Neutral | $14.12B | 6.43 | -3.57% | 3.69% | 2.49% | -35.43% | |
56 Neutral | $446.64M | 501.77 | 0.16% | ― | 11.58% | ― | |
54 Neutral | $853.68M | 59.21 | -1.12% | 7.99% | -6.30% | -109.90% | |
44 Neutral | $1.10B | ― | 21.93% | ― | -3.68% | -2563.04% |
* Communication Services Sector Average
Performance Comparison
IDT
IDT
60.96
21.76
55.51%
SBGI
Sinclair Broadcast
14.13
2.57
22.23%
GOGO
Gogo
10.84
0.35
3.34%
CABO
Cable ONE
151.69
-207.75
-57.80%
ATUS
Altice Usa
2.36
-0.07
-2.88%
BOC
Boston Omaha
14.20
-0.93
-6.15%
IDT Earnings Call Summary
Earnings Call Date:Mar 06, 2025
(Q2-2025)
| % Change Since: 32.15%|
Next Earnings Date:Jun 04, 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.Q2-2025 Updates
Positive Updates
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.
Negative Updates
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.