IDT (IDT) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: 0.34%
• Average Volume (3M): 237.24K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.70
• Revenue Growth: 1.91%
• EPS Growth: 169.96%
• Country: US
• Employees: 1,820
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.90
• Shares Outstanding: 23,655,931
• 10 Day Avg. Volume: 265,931
• 30 Day Avg. Volume: 237,237
• PEG Ratio: 0.88
• Price to Book (P/B): 5.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.47
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 3.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: $78.00 ▲(13.60%Upside)

IDT's strong financial performance, reflected in robust profitability and cash flow metrics, is the most significant factor driving the score. The bullish technical indicators support a positive outlook, while reasonable valuation and positive earnings call insights further bolster the stock's attractiveness. The recent dividend announcement enhances confidence in shareholder value. However, caution is advised due to slight revenue growth challenges and nearing overbought technical levels.

IDT Business Overview & Revenue Model

Company Description

IDT 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 Money

IDT 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 demonstrates strong profitability with improving gross and net profit margins. The balance sheet is robust with minimal leverage, and cash flow performance is strong with significant improvements in operating and free cash flow. Although revenue growth has faced challenges, profitability and cash flow strengths provide a solid foundation for future growth.

Income Statement

IDT has demonstrated strong profitability with increasing gross and net profit margins in the TTM period. The gross profit margin improved to 35.46% from previous annual figures, and the net profit margin rose to 7.85%. Revenue growth has been a challenge with slight declines in previous years but showed resilience in the TTM results. The EBIT and EBITDA margins have also shown positive trends, indicating effective cost management and operational efficiency.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio of 0.004, highlighting minimal leverage and financial stability. The return on equity (ROE) has improved significantly to 33.55% in the TTM period, reflecting strong profitability relative to equity. The equity ratio is solid at 47.62%, indicating a healthy balance between equity and assets, further supporting the company's financial strength.

Cash Flow

Cash flow performance is strong, with significant improvements in operating cash flow and free cash flow. The free cash flow to net income ratio is high at 1.08, indicating efficient earnings conversion into cash. Free cash flow growth has been robust, supporting financial flexibility. The operating cash flow to net income ratio of 1.30 further emphasizes the company's ability to generate cash from operations effectively.

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	433.89M	390.16M	363.12M	329.63M	292.94M	261.76M
EBITDA	107.96M	82.26M	80.94M	53.00M	82.99M	38.12M
Net Income	96.03M	64.45M	40.49M	27.03M	96.47M	21.43M
Balance Sheet
Total Assets	600.91M	550.10M	510.81M	497.09M	512.65M	404.75M
Cash, Cash Equivalents and Short-Term Investments	223.82M	193.00M	152.25M	137.75M	163.59M	109.19M
Total Debt	1.21M	1.53M	2.88M	4.61M	5.47M	7.35M
Total Liabilities	290.06M	283.54M	300.34M	316.27M	346.04M	333.61M
Stockholders Equity	286.16M	246.18M	193.73M	167.62M	164.86M	74.77M
Cash Flow
Free Cash Flow	104.13M	59.27M	32.18M	7.53M	49.85M	-45.63M
Operating Cash Flow	124.94M	78.19M	54.14M	29.41M	66.62M	-29.59M
Investing Cash Flow	-10.00M	-748.00K	-33.46M	-33.78M	-44.06M	-32.46M
Financing Cash Flow	-30.74M	-17.23M	-15.81M	-15.62M	-4.52M	-5.65M

IDT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 68.66 is above the 20-day moving average (MA) of 67.02, above the 50-day MA of 60.86, and above the 200-day MA of 50.87, indicating a bullish trend. The MACD of 2.33 indicates Positive momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 78.41 is Neutral, 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	78 Outperform	$1.73B	18.12	38.36%	0.34%	1.91%	169.96%
GOGO	75 Outperform	$2.04B	76.11	-6.47%	―	41.51%	-103.22%
GOGO	75 Outperform	$2.04B	76.11	-6.47%	―	41.51%	-103.22%
Sector *	61 Neutral	$40.69B	-0.79	-11.97%	3.78%	2.11%	-69.16%
CABO	56 Neutral	$729.53M	59.21	-1.12%	9.10%	-6.30%	-109.90%
CABO	56 Neutral	$729.53M	59.21	-1.12%	9.10%	-6.30%	-109.90%
SBGI	56 Neutral	$989.31M	7.20	34.07%	6.76%	11.62%	―
SBGI	56 Neutral	$989.31M	7.20	34.07%	6.76%	11.62%	―
BOC	53 Neutral	$443.81M	498.59	0.16%	―	11.58%	―
BOC	53 Neutral	$443.81M	498.59	0.16%	―	11.58%	―
ATUS	41 Neutral	$1.04B	―	21.93%	―	-3.68%	-2563.04%
ATUS	41 Neutral	$1.04B	―	21.93%	―	-3.68%	-2563.04%

IDT Corporate Events

IDT Presents Investor Slide Deck on June 12

On June 12, 2025, IDT provided a slide presentation to certain investors, which is also accessible on their investor relations webpage. The presentation, disclosed under SEC regulations, includes forward-looking statements and is not filed with the SEC.

IDT Announces Quarterly Cash Dividend for June 2025

On June 5, 2025, IDT Corporation announced a quarterly cash dividend of $0.06 per share, payable on June 18, 2025, to stockholders of record as of June 9, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may impact its financial positioning and investor relations.