Telephone Communications (No Radiotelephone)
IDT Corporation provides communications and payment services in the United States and internationally. The company operates through three segments: Fintech, net2phone, and Traditional Communications. The Fintech segment offers international money remittance and related value/payment transfer services under the BOSS Revolution brand name; and 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 segment provides net2phone, a cloud communications service for businesses; and cable telephony services under the net2phone brand name. The Traditional Communications segment offers 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; and IDT Global, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms. The company was incorporated in 1978 and is headquartered in Newark, New Jersey.
Discounted Cash Flow Valuation of Idt Corp
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +2.3%.
The trend of Net Margin over the past 5 years is +0.74%.
The average ROA over the past 5 years is +7.22%.
The trend of ROA over the past 5 years is +2.67%.
The average ROE over the past 5 years is +22.72%.
The trend of ROE over the past 5 years is +3.15%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is -.
The trend of Debt/FCF over the past 5 years is -.
Graham’s Stability measure stands at 0.01.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is -4.35%.
The trend of Revenue growth rate over the past 5 years is -0.25%.
The Earnings CAGR over the past 5 years is +57.27%.
The trend of Earnings growth rate over the past 5 years is +259.4%.
The Equity CAGR over the past 5 years is +44.91%.
The trend of Equity growth rate over the past 5 years is +4.6%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is -58.52%.