IDT (IDT) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 0.47%
• Average Volume (3M): 150.56K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.77
• Revenue Growth: 2.52%
• EPS Growth: 10.02%
• Country: US
• Employees: 1,820
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.94
• Shares Outstanding: 23,499,022
• 10 Day Avg. Volume: 176,170
• 30 Day Avg. Volume: 150,563
• PEG Ratio: 1.06
• Price to Book (P/B): 4.86
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 13.96
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 2.10
• Enterprise Value/Ebitda: 10.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.71
• Revenue Forecast (FY): $1.23B

• Rating: 70 Outperform
• Price Target: $53.00 ▲(5.60% Upside)

IDT's overall stock score of 70 reflects strong financial performance and positive earnings call sentiment, which are somewhat offset by bearish technical indicators. The company's robust profitability and strategic growth in key segments are significant strengths. However, technical analysis suggests caution due to current negative trends. Valuation is neutral, providing no strong buy or sell signals.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Segment Performance

Growth in key segments like NRS and Fintech shows successful diversification and potential for sustained profitability in emerging markets.

Balance Sheet Health

A robust balance sheet with low leverage and high return on equity enhances financial stability and provides flexibility for future investments.

Negative Factors

Cash Flow Concerns

Decreasing free cash flow growth may limit the company's ability to fund operations and investments, impacting long-term financial health.

Decline in Revenue Streams

A decline in specific revenue streams like NRS advertising could indicate challenges in maintaining diverse income sources, affecting future growth.

Reduction in Cash Holdings

A reduction in cash reserves may limit the company's ability to respond to opportunities or challenges, affecting operational flexibility.

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 generates revenue through multiple key streams. Its primary revenue source comes from international long-distance calling services, where the company charges customers for calls made to overseas destinations. In addition, IDT earns income from its payment processing services, which include money transfer services and mobile top-up solutions, catering to a global customer base. The company also benefits from partnerships with various telecom operators and financial institutions that expand its service offerings and customer reach. Furthermore, IDT's proprietary technology platforms facilitate efficient service delivery and enhance customer experience, contributing to customer retention and growth in revenue.

IDT Financial Statement Overview

Summary

IDT demonstrates strong financial health with robust profitability and a solid balance sheet. The company has managed to grow its revenue while maintaining efficient operations. Despite a recent decline in free cash flow growth, the company's low leverage and strong return on equity provide a stable financial foundation. Continued focus on cash flow management will be crucial to sustain long-term growth.

Income Statement

IDT's income statement shows strong profitability with a gross profit margin of 36.70% and a net profit margin of 6.52% in the TTM period. The company has demonstrated consistent revenue growth, with a notable increase of 7.1% in the TTM. EBIT and EBITDA margins are healthy, indicating efficient operations. However, there was a slight decline in EBIT margin compared to the previous annual report, suggesting potential cost pressures.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio of 0.28%, indicating minimal leverage and financial risk. The return on equity is impressive at 27.09%, reflecting strong profitability relative to shareholder equity. The equity ratio of 48.96% suggests a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 10.21% in the TTM, which could be a concern. However, the operating cash flow to net income ratio of 1.44 indicates good cash generation relative to net income. The free cash flow to net income ratio of 81.75% suggests that a substantial portion of earnings is being converted into free cash flow, despite the recent decline.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.23B	1.21B	1.24B	1.36B	1.45B
Gross Profit	446.19M	390.16M	363.12M	329.63M	292.94M
EBITDA	127.16M	82.26M	82.10M	71.48M	70.58M
Net Income	76.09M	64.45M	40.49M	27.03M	96.47M
Balance Sheet
Total Assets	626.20M	550.10M	510.81M	497.09M	512.65M
Cash, Cash Equivalents and Short-Term Investments	253.79M	193.00M	152.25M	137.75M	163.59M
Total Debt	1.95M	1.53M	2.88M	4.61M	5.47M
Total Liabilities	295.79M	283.54M	300.34M	316.27M	346.04M
Stockholders Equity	305.13M	246.18M	193.73M	167.62M	164.86M
Cash Flow
Free Cash Flow	106.29M	59.27M	32.18M	7.53M	49.85M
Operating Cash Flow	127.06M	78.19M	54.14M	29.41M	66.62M
Investing Cash Flow	-20.74M	-748.00K	-33.46M	-33.78M	-44.06M
Financing Cash Flow	-23.42M	-17.23M	-15.81M	-15.62M	-4.52M

IDT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 50.19 is above the 20-day moving average (MA) of 49.83, above the 50-day MA of 49.68, and below the 200-day MA of 56.03, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 54.14 is Neutral, neither overbought nor oversold. The STOCH value of 42.31 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	70 Outperform	$1.26B	15.64	27.94%	0.47%	2.52%	10.02%
IHS	63 Neutral	$2.51B	5.56	―	―	-0.97%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TV	55 Neutral	$1.33B	―	-9.77%	3.08%	-18.28%	-42.53%
LILA	53 Neutral	$1.69B	―	-79.15%	―	-0.83%	-25.72%
LILAK	50 Neutral	$1.57B	-1.32	-79.15%	―	-0.83%	-25.72%
ATUS	40 Underperform	―	―	―	―	-4.19%	-982.67%

IDT Corporate Events

IDT Declares Quarterly Cash Dividend Announcement

On September 22, 2025, IDT Corporation announced that its Board of Directors has declared a quarterly cash dividend of $0.06 per share. The dividend is scheduled to be paid on October 10, 2025, to stockholders who are recorded as of September 30, 2025, reflecting the company’s ongoing commitment to returning value to its shareholders.