IRDM

Iridium Communications Inc.

Fundamental data last updated:October 10, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Communication Services

industry

Telecommunications Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

 


VALUATION

P/E

51.36

Market Cap ($M USD)

$5.42B

Forward P/E

22.00

PEG

0.16

PRICE TO SALES

6.19

PRICE TO BOOK

11.58

EV / EBITDA

12.04

5-Year Average P/E

Free Cash Flow Yield

5.63%

DCF Value

$128.36

Graham Number

$9.97

Price to FCF

17.77

EV to FCF

17.43

Earnings Yield

1.95%

FCF Yield

5.63%

DIVIDEND

Yield

1.15%

Annual Payout

$0.59

Payout Ratio

60.36%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.00

Next Year EPS Growth Estimate

$2.33

Next Year Revenue Growth Estimate

$1.08B

Return on Equity (ROE)

22.76%

FREE CASH FLOW

Operating Margin

25.84%

Debt-to-Equity

3.81

Piotroski F-Score

9

Altman Z-Score

2.11

Return on Invested Capital (ROIC)

9.34%

Current Ratio

2.85

Quick Ratio

2.21

Net Debt to EBITDA

-0.23

Interest Coverage

2.43

Gross Profit margin

62.53%

FCF PER SHARE

$2.88

REVENUE PER SHARE

$8.28

Gainseekers Quantitative Analysis

Summary

The market seems to be undervaluing Iridium Communications Inc. significantly. With a DCF value towering over the recent pricing, the stock appears deeply discounted. The Forward P/E of 17.79 suggests a more reasonable future valuation, while the Altman Z-score of 1.79 raises some caution about financial stability. However, the robust Earnings Yield of 2.41% and a PEG ratio of 0.13 indicate strong growth potential at a bargain. This is a classic case of a stock priced for value hunters, despite its high Price/Book ratio.

AI Exposure / Tech Reliance

Operating in the Telecommunications Services industry, Iridium is well-positioned to leverage AI and modern tech advancements. Its satellite communication services can integrate AI for enhanced data analytics and operational efficiency. This adaptability ensures resilience in a rapidly evolving tech landscape.

The Bull Case

For value or GARP investors, Iridium shines with its impressive ROIC of 9.34% and a perfect Piotroski F-Score of 9, indicating strong financial health and operational efficiency. The company's Free Cash Flow Yield, although modest, is supported by a solid Operating Margin of 25.84%, showcasing its pricing power. These metrics paint a picture of a company that efficiently turns capital into profits, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Iridium faces structural risks with a high Price/Book ratio of 9.36 and Price/Sales of 5.00, suggesting potential overvaluation. The stock's proximity to its 52-week high, just 6.99% away, indicates technical overextension. Additionally, the Debt/Equity ratio of 3.81 raises concerns about financial leverage, which could be a red flag in volatile markets. These factors could deter risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$37.00

Institutional Ownership %

1-Year Beta

0.80

Insider Buying % (6 Mo)

Distance to 52-Week High

1.93%

Distance to 52-Week Low

69.47%

EARNINGS SURPRISE %

-25.93%

50-DAY SMA

$37.70

200-DAY SMA

$24.36

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.