Iridium Communications (IRDM) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: 1.95%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.63
• Revenue Growth: 6.64%
• EPS Growth: 403.10%
• Country: US
• Employees: 873
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): 0.27
• Shares Outstanding: 108,160,324
• 10 Day Avg. Volume: 1,154,298
• 30 Day Avg. Volume: 1,066,649
• PEG Ratio: -3.83
• Price to Book (P/B): 5.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.11
• Enterprise Value/Market Cap: 2.54
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 13.83
• Enterprise Value/Ebitda: 4.74
• 1Y Price Target: $36.00
• Price Target Upside: 23.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: $33.00 ▲(12.90%Upside)

Iridium Communications scores 78, driven by its strong financial performance and positive earnings call outlook, though tempered by valuation concerns and potential tariff impacts. The stock's technical indicators suggest current overbought conditions, warranting cautious optimism.

Positive Factors

Financial Performance

Iridium is trading at a 13% yield on the 2025 projected free cash flow, with potential for greater than 20% upside as the yield decreases back to the 10% range.

Partnerships

Iridium’s partnerships with Garmin and the U.S. Department of Defense will continue to expand.

Shareholder Returns

Iridium has been buying back approximately 10% of its float per year, which is expected to continue into the 2030s.

Negative Factors

Competition

The main downside risk to shares is intensifying competition from SpaceX and Apple.

Market Concerns

There is concern around potential risk to Iridium Communications' IoT business due to the recent SpaceX momentum in Direct-to-Device, such as T-Mobile Starlink trials.

Service Revenue

Operational EBITDA is projected to only increase by as much as 4 percent compared to service revenue growth of five percent.

Iridium Communications Business Overview & Revenue Model

Company Description

Iridium Communications Inc. provides mobile voice and data communications services and products to businesses, the United States and international governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services. It also provides hosted payload and other data services, such as satellite time and location services, and inbound connections from the public switched telephone network, short message, subscriber identity module, activation, customer reactivation, and other peripheral services. In addition, the company offers voice and data solutions comprising personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; maritime communications applications; specialized communications solutions for high-value individuals; mobile communications and data devices for the military and intelligence agencies, such as secure satellite handsets, as well as netted voice, messaging, and paging services; and maintenance services for the United States government's dedicated gateway. Further, it provides satellite handsets, personal connectivity devices, voice and data modems, broadband data devices, and IoT data devices; various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others; and engineering and support services. Iridium Communications Inc. sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. was founded in 2000 and is headquartered in McLean, Virginia.

How the Company Makes Money

Iridium Communications generates revenue primarily through the sale of satellite communication services and equipment. Key revenue streams include service revenue from voice and data communication plans, which are offered to individual customers, businesses, and government agencies. Additionally, the company earns revenue by selling satellite phones, modems, and other communication devices. Iridium also partners with various service providers and resellers to extend its market reach, further enhancing its revenue potential. The company's strategic focus on niche markets such as maritime, aviation, and defense, where reliable communication is critical, helps sustain its earnings. Furthermore, Iridium's network of interlinked satellites provides a unique coverage advantage, contributing to its competitive position and financial performance.

Iridium Communications Financial Statement Overview

Summary

Iridium Communications shows strong financial performance with robust revenue and profit growth and effective cash flow management. The balance sheet is stable with prudent leveraging, though net income variability and a decline in equity are areas of concern. Overall, the company is well-positioned within the telecommunications services industry.

Income Statement

Iridium Communications exhibits strong revenue growth, as evidenced by a 10.21% increase from 2023 to 2024 and a robust 16.40% growth from 2022 to 2023. The company maintains healthy gross and EBITDA margins, reinforcing its profitability. However, the net profit margin has fluctuated, indicating some variability in net income performance. Overall, the firm demonstrates a positive growth trajectory and solid operational efficiency, although improvements in net income stability could enhance its financial standing.

Balance Sheet

The balance sheet shows a strong equity position with a stable equity ratio, as stockholders' equity consistently represents a significant portion of total assets. The debt-to-equity ratio is low, indicating prudent leveraging and financial stability. However, a notable decline in total equity from 2021 to 2023 suggests potential concerns in asset management or profitability. Despite this, the company's current financial leverage is manageable, reflecting a stable financial foundation.

Cash Flow

The cash flow statement highlights consistent positive operating cash flow, which supports the firm's ability to generate cash from operations effectively. Free cash flow remains strong, showcasing efficient capital expenditure management. The operating cash flow to net income ratio is high, indicating robust cash generation relative to net income. Nonetheless, fluctuations in free cash flow growth suggest potential variability in capital allocation or operational investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
841.71M	830.68M	790.72M	721.03M	614.50M	583.44M
	Gross Profit
571.91M	652.54M	565.60M	519.88M	464.10M	440.75M
	EBIT
211.00M	200.38M	81.63M	76.68M	46.31M	35.48M
	EBITDA
421.49M	415.67M	380.07M	380.16M	351.75M	338.66M
	Net Income Common Stockholders
123.53M	112.78M	15.41M	8.72M	-9.32M	-56.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.90M	93.53M	71.87M	168.77M	320.91M	244.73M
	Total Assets
2.61B	2.67B	2.66B	2.95B	3.18B	3.36B
	Total Debt
1.81B	1.79B	1.48B	1.49B	1.60B	1.61B
	Net Debt
1.76B	1.70B	1.41B	1.32B	1.28B	1.38B
	Total Liabilities
2.09B	2.09B	1.77B	1.83B	1.89B	1.94B
	Stockholders Equity
518.45M	576.64M	888.10M	1.13B	1.29B	1.42B
Cash Flow		Free Cash Flow
285.74M	306.06M	241.43M	273.46M	260.73M	211.08M
	Operating Cash Flow
365.61M	375.95M	314.91M	344.73M	302.87M	249.77M
	Investing Cash Flow
-190.59M	-180.60M	-83.49M	-121.27M	-36.38M	-46.47M
	Financing Cash Flow
-297.07M	-170.48M	-327.05M	-374.98M	-182.47M	-188.19M

Iridium Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRDM, the sentiment is Positive. The current price of 29.23 is above the 20-day moving average (MA) of 26.46, above the 50-day MA of 25.29, and above the 200-day MA of 28.07, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 71.90 is Negative, neither overbought nor oversold. The STOCH value of 93.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRDM.

Iridium Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	82 Outperform	$9.16B	14.92	13.18%	0.45%	-6.63%	2.46%
IRDM	78 Outperform	$3.11B	27.02	18.01%	1.95%	6.64%	403.10%
GSAT	64 Neutral	$2.76B	―	-18.66%	―	14.55%	-81.21%
VEON	63 Neutral	$3.34B	7.63	42.31%	―	8.27%	―
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
LUMN	56 Neutral	$4.26B	―	-78.94%	―	-7.86%	97.11%
TDS	54 Neutral	$3.79B	―	-0.97%	0.45%	-5.14%	78.63%

Iridium Communications Corporate Events

Iridium Communications Holds Annual Meeting, Approves Key Proposals

At the Annual Meeting held virtually on May 14, 2025, Iridium Communications‘ stockholders approved several key proposals, including the election of ten directors for one-year terms, the compensation of executive officers, and the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, the stockholders approved an amendment to the company’s certificate of incorporation to limit the liability of certain officers and the amended and restated 2015 Equity Incentive Plan. The Board of Directors also declared a cash dividend of $0.14 per share, payable on June 30, 2025, to stockholders of record as of June 13, 2025.

The most recent analyst rating on (IRDM) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Iridium Communications stock, see the IRDM Stock Forecast page.