IDT (IDT) AI Stock Analysis

• Market Cap: $1.67B
• Dividend Yield: 0.36%
• Average Volume (3M): 176.45K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.63
• Revenue Growth: 1.91%
• EPS Growth: 169.96%
• Country: US
• Employees: 1,820
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): 0.90
• Shares Outstanding: 23,655,931
• 10 Day Avg. Volume: 248,030
• 30 Day Avg. Volume: 176,454
• PEG Ratio: 0.29
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.81
• Enterprise Value/Market Cap: 0.30
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.22
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $78.00 ▲(18.09%Upside)

IDT's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. Technical analysis indicates potential overbought conditions, and while the valuation is fair, the low dividend yield might deter some investors. Overall, the company is well-positioned for continued growth, though careful monitoring of revenue volatility and market conditions is advised.

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 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 with 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 financial health is solid, though there are 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
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

• Technical Analysis Sentiment: Positive
• Last Price: 66.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 66.05 is above the 20-day moving average (MA) of 62.40, above the 50-day MA of 55.55, and above the 200-day MA of 48.79, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 67.68 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	77 Outperform	$1.67B	17.43	38.36%	0.36%	1.91%	169.96%
GOGO	70 Outperform	$1.54B	76.11	-6.47%	―	41.51%	-103.22%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
SBGI	59 Neutral	$932.95M	6.79	34.07%	7.60%	11.62%	―
CABO	56 Neutral	$756.82M	59.21	-1.12%	8.77%	-6.30%	-109.90%
BOC	50 Neutral	$442.86M	493.64	0.16%	―	11.58%	―
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.