Iridium Communications (IRDM) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: 3.6%
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.53
• Revenue Growth: 7.30%
• EPS Growth: 21.31%
• Country: US
• Employees: 873
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.35
• Shares Outstanding: 104,745,680
• 10 Day Avg. Volume: 1,887,886
• 30 Day Avg. Volume: 2,689,149
• PEG Ratio: 0.04
• Price to Book (P/B): 5.97
• Price to Sales (P/S): 4.14
• P/FCF Ratio: 11.24
• Enterprise Value/Market Cap: 2.11
• Enterprise Value/Revenue: 4.11
• Enterprise Value/Gross Profit: 8.68
• Enterprise Value/Ebitda: 7.96
• 1Y Price Target: $25.71
• Price Target Upside: 62.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.05
• Revenue Forecast (FY): $878.26M

• Rating: 64 Neutral
• Price Target: $17.50 ▲(10.48% Upside)

Iridium Communications' overall stock score is driven by solid financial performance and attractive valuation. However, technical indicators suggest bearish momentum, and mixed earnings call sentiment highlights potential challenges. The high leverage and competition in the satellite market are notable risks.

Positive Factors

Operational EBITDA Growth

The growth in operational EBITDA indicates strong recurring service revenue and efficient cost management, supporting long-term profitability.

Strong Cash Flow Projections

Robust cash flow projections ensure financial flexibility for future investments and strategic initiatives, enhancing long-term growth potential.

New Partnerships and Growth

Expanding partnerships enhance Iridium's ecosystem, driving innovation and market reach, which supports sustainable revenue growth.

Negative Factors

High Leverage

Significant leverage can increase financial risk, potentially affecting cash flow and limiting the company's ability to invest in growth opportunities.

Broadband Revenue Decline

Declining broadband revenue due to non-renewal of contracts may impact overall revenue growth and market competitiveness in the long term.

Increased Competition

Rising competition could disrupt market share and pressure margins, challenging Iridium's market position and growth prospects.

Iridium Communications Business Overview & Revenue Model

Company Description

Iridium Communications Inc. (IRDM) is a global satellite communications company that provides voice and data services through its satellite network, which consists of a constellation of 66 satellites in low Earth orbit. The company serves various sectors including maritime, aviation, government, and emergency services, offering products such as satellite phones, broadband data services, and IoT solutions. Iridium's unique positioning allows it to offer reliable communications in remote areas where traditional networks are unavailable, making it a vital provider in critical communications and connectivity solutions.

How the Company Makes Money

Iridium Communications generates revenue primarily through service subscriptions, equipment sales, and value-added services. Its key revenue streams include monthly service fees from customers using satellite phones and data services, as well as one-time sales from satellite communication equipment. The company also earns revenue from partnerships with various organizations, including government contracts and collaborations with telecom companies that integrate Iridium's services into their offerings. Additionally, Iridium benefits from the growth of the IoT market, leveraging its satellite network to provide connectivity solutions for IoT devices, which further diversifies its earnings.

Iridium Communications Financial Statement Overview

Summary

Iridium Communications demonstrates solid financial health with strong profitability and cash generation capabilities. However, the high leverage poses a potential risk, and the decline in free cash flow growth could impact future investments.

Income Statement

Iridium Communications shows strong profitability with a consistent increase in gross profit margin and net profit margin over the years, reaching 75.52% and 14.44% respectively in TTM. Revenue growth is positive, albeit modest at 1.65% in TTM. The company has improved its EBIT and EBITDA margins, indicating efficient cost management and operational performance.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 4.02 in TTM, indicating significant leverage, which could pose financial risk. However, the return on equity has improved to 24.93%, showcasing better utilization of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing.

Cash Flow

Cash flow analysis reveals a robust operating cash flow to net income ratio of 3.84, indicating strong cash generation relative to net income. However, free cash flow growth has declined by 6.37% in TTM, which could impact future investments. The free cash flow to net income ratio remains healthy at 0.77, reflecting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	871.71M	830.68M	790.72M	721.03M	614.50M	583.44M
Gross Profit	412.59M	396.99M	283.10M	216.40M	158.67M	137.57M
EBITDA	449.69M	415.67M	380.07M	386.08M	350.45M	312.81M
Net Income	125.85M	112.78M	15.41M	8.72M	-9.32M	-56.05M
Balance Sheet
Total Assets	2.55B	2.67B	2.66B	2.95B	3.18B	3.36B
Cash, Cash Equivalents and Short-Term Investments	88.53M	93.53M	71.87M	168.77M	320.91M	244.73M
Total Debt	1.81B	1.81B	1.50B	1.51B	1.62B	1.64B
Total Liabilities	2.10B	2.09B	1.77B	1.83B	1.89B	1.94B
Stockholders Equity	450.50M	576.64M	888.10M	1.13B	1.29B	1.42B
Cash Flow
Free Cash Flow	305.21M	306.06M	241.43M	273.46M	260.73M	211.08M
Operating Cash Flow	396.27M	375.95M	314.91M	344.73M	302.87M	249.77M
Investing Cash Flow	-91.06M	-180.60M	-83.49M	-121.27M	-36.38M	-46.47M
Financing Cash Flow	-376.75M	-170.48M	-327.05M	-374.98M	-182.47M	-188.19M

Iridium Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRDM, the sentiment is Negative. The current price of 15.84 is below the 20-day moving average (MA) of 17.13, below the 50-day MA of 17.94, and below the 200-day MA of 24.51, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 34.11 is Neutral, neither overbought nor oversold. The STOCH value of 11.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRDM.

Iridium Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	68 Neutral	$1.23B	16.18	27.60%	0.48%	2.13%	18.44%
IRDM	64 Neutral	$1.70B	14.13	22.59%	3.60%	7.30%	21.31%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IHS	57 Neutral	$2.11B	4.54	―	―	-0.97%	―
GSAT	56 Neutral	$7.54B	―	-12.45%	―	8.54%	-59.63%
GOGO	52 Neutral	$931.63M	―	-6.63%	―	102.05%	-110.74%
CCOI	39 Underperform	$834.08M	―	-136.94%	18.29%	-6.48%	-588.01%

Iridium Communications Corporate Events

Iridium Communications Reports Strong Q3 2025 Results

Iridium Communications Inc., a prominent player in the satellite communications sector, offers global voice, data, and positioning services through its unique satellite network. The company is known for its mission-critical communications and safety services, catering to various industries including government and regulated sectors.

Iridium Communications’ Earnings Call: Mixed Sentiments and Strategic Moves

The recent earnings call of Iridium Communications presented a mixed sentiment, balancing positive growth indicators with notable challenges. While the company reported significant growth in operational EBITDA and established new partnerships, it also faced hurdles such as a decline in broadband revenue and heightened competition in the satellite market.