Idt Corp

IDT

Telephone Communications (No Radiotelephone)

Mkt Cap

$735.7M

PE

18.17

Debt

Cash

$198.8M

EV

FCF

$32.18M

Market Cap

$735.7M

P/E Ratio

18.17

Debt

Cash

$198.8M

EV

FCF

$32.18M

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.

Sector

10-Q
4/30/23
10-Q
1/31/23
10-Q
10/31/22
10-K
7/31/22
10-Q
4/30/22
10-Q
1/31/22
10-Q
10/31/21
10-K
7/31/21
10-Q
4/30/21
10-Q
1/31/21
10-Q
10/31/20
10-K
7/31/20
10-Q
4/30/20
10-Q
1/31/20
10-Q
10/31/19
10-K
7/31/19
10-Q
4/30/19
10-Q
1/31/19
10-Q
10/31/18
10-K
7/31/18
10-Q
4/30/18
10-Q
1/31/18
10-Q
10/31/17

DCF

Discounted Cash Flow Valuation of Idt Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$32.18M	$35.55M	$39.06M	$42.68M	$46.37M	$50.1M	$53.83M	$57.5M	$61.08M	$64.5M	$67.73M	$677.3M
DCF		$30.92M	$29.54M	$28.06M	$26.51M	$24.91M	$23.27M	$21.62M	$19.97M	$18.34M	$16.74M	$167.4M
Value	$407.3M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 6.4%

Earnings Stability -11%

Competitiveness and MOAT

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 Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	07-2015	07-2016	07-2017	07-2018	07-2019	07-2020	07-2021	07-2022	07-2023	TTM
Net Margin	5.3%	1.6%	0.54%	0.27%	0.0095%	1.6%	6.7%	2%	3.3%	3.3%
ROA	19%	6.3%	1.5%	2.1%	0.1%	4.4%	13%	12%	12%	12%
ROE	63%	19%	5.3%	13%	0.24%	29%	58%	16%	20%	20%

What is the average Net Margin?

The average Net Margin over the past 5 years is +2.3%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.74%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.22%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +2.67%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +22.72%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +3.15%.

Safety & Stabiliy

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.

Data are missing

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	07-2015	07-2016	07-2017	07-2018	07-2019	07-2020	07-2021	07-2022	07-2023	TTM
Debt FCF	6.42	-	-	-	-	-	-	-	-	-
Debt Equity	0.09	-	-	-	-	-	-	-	-	-
MIN
Graham Stability	-	-	19%	11%	1.1%	100%	100%	69%	84%	1.1%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.01.

Growth

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.

Earnings growth has been increasing in past years.

Years	07-2016	07-2018	07-2020	07-2022	Trend
Revenue	-2.7%	-4.4%	-2.7%	-9.2%	-0.25%
Net Income	8.1%	57%	24%	50%	260%
Stockholders Equity	7%	45%	39%	17%	4.6%
FCF	0.68%	-	-	330%	-59%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -4.35%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.25%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +57.27%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +259.4%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +44.91%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +4.6%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -58.52%.