# Iridium Communications Inc (IRDM) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $47.21, market value $5.0 billion.

## Valuation
- **P/E (trailing): 54.3×** (5-yr avg 264.6×, 3-yr avg 123.5×). Iridium Communications Inc trades at 54.3× trailing earnings, well below its own five-year average of 264.6×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 27.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.16**. A PEG of 2.16 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 5.7×**. Each dollar of revenue is priced at 5.7×.
- **Price / book: 10.6×**. The shares trade at 10.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 15.7×**. Enterprise value is 15.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.8%** (5-yr avg 7.9%). Free cash flow equals 5.8% of the market value, below its five-year average of 7.9%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 1.8%**. The inverse of the P/E: 1.8% of the price is earned each year.

## Profitability
- **Operating margin: 23.8%**. 23.8% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 13.1%**. 13.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 24.7%**. 24.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 7.8%**. Return on all capital, debt included, is 7.8%.
- **Return on assets: 3.7%**. Each dollar of assets produces 3.7% of profit.

## Growth
- **Revenue growth (1 yr): 4.9%** (3-yr 6.5%/yr, 5-yr 8.4%/yr). Revenue grew 4.9% over the last year, against 8.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 12.8%** (3-yr 147.4%/yr). Earnings per share rose 12.8%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 3.1%/yr**. Free cash flow has compounded at 3.1% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 3.81**. Debt is 3.81 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 3.9×**. It would take 3.9 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Altman Z-score: 2.36**. A Z-score of 2.36 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.27%** ($0.60 per share, trailing). Iridium Communications Inc yields 1.27%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 55%** (22% of free cash flow). 55% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.

## Analyst view
- **Analyst consensus: buy** (5 analysts). 5 analysts cover Iridium Communications Inc; the consensus is buy, with an average price target of $42.00 (-11% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 96.8%** (YTD 174.2%, 3-mo 0.0%). The shares are up 96.8% over twelve months including dividends.
- **From 52-week high: -17.4%** (201.7% above the low). Trading 17% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 46**. An RSI of 46 is neutral.
- **Beta (1 yr): 1.33** (volatility 66%). Beta of 1.33 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=IRDM · Page: https://foliofundamentals.com/stocks/irdm

Not investment advice.