Iridium Communications Inc.
IRDM
Communications Equipment, NEC
Mkt Cap
$3.643BPE
144.02Debt
-Cash
$174MEV
-FCF
$252.3MP/E Ratio
144.02Debt
-Cash
$174MEV
-FCF
$252.3MCharts data: {"Earnings":[{"time":"2014-12-30","value":62669000},{"time":"2015-12-30","value":-8313000},{"time":"2016-12-30","value":95596000},{"time":"2017-12-30","value":218420000},{"time":"2018-12-30","value":-23533000},{"time":"2019-12-30","value":-166193000},{"time":"2020-12-30","value":-56054000},{"time":"2021-12-30","value":-9319000},{"time":"2022-12-30","value":8722000},{"time":"2023-12-30","value":15415000}],"Sales":[{"time":"2014-12-30","value":408557000},{"time":"2015-12-30","value":411378000},{"time":"2016-12-30","value":433640000},{"time":"2017-12-30","value":448046000},{"time":"2018-12-30","value":523008000},{"time":"2019-12-30","value":560444000},{"time":"2020-12-30","value":583439000},{"time":"2021-12-30","value":614500000},{"time":"2022-12-30","value":721034000},{"time":"2023-12-30","value":790723000}],"Net Margins":[{"time":"2014-12-30","value":0.1533910812934303},{"time":"2015-12-30","value":-0.02020769219549903},{"time":"2016-12-30","value":0.22045014297574025},{"time":"2017-12-30","value":0.48749458760930797},{"time":"2018-12-30","value":-0.044995487640724426},{"time":"2019-12-30","value":-0.296538101933467},{"time":"2020-12-30","value":-0.09607516809812165},{"time":"2021-12-30","value":-0.015165174938974776},{"time":"2022-12-30","value":0.012096516946496282},{"time":"2023-12-30","value":0.019494816768957018}],"Assets":[{"time":"2014-12-30","value":2909681000},{"time":"2015-12-30","value":3204230000},{"time":"2016-12-30","value":3499625000},{"time":"2017-12-30","value":3782051000},{"time":"2018-12-30","value":4014271000},{"time":"2019-12-30","value":3623557000},{"time":"2020-12-30","value":3360949000},{"time":"2021-12-30","value":3180795000},{"time":"2022-12-30","value":2954011000},{"time":"2023-12-30","value":2661775000}],"Stockholders Equity":[{"time":"2014-12-30","value":1231864000},{"time":"2015-12-30","value":1228721000},{"time":"2016-12-30","value":1343758000},{"time":"2017-12-30","value":1596469000},{"time":"2018-12-30","value":1601577000},{"time":"2019-12-30","value":1459282000},{"time":"2020-12-30","value":1419439000},{"time":"2021-12-30","value":1287947000},{"time":"2022-12-30","value":1128555000},{"time":"2023-12-30","value":888099000}],"ROE":[{"time":"2014-12-30","value":0.05087331069014112},{"time":"2015-12-30","value":-0.00676557167981991},{"time":"2016-12-30","value":0.07114078576648473},{"time":"2017-12-30","value":0.13681443235039328},{"time":"2018-12-30","value":-0.014693642578533533},{"time":"2019-12-30","value":-0.11388682927631534},{"time":"2020-12-30","value":-0.03949024931680756},{"time":"2021-12-30","value":-0.007235546183189215},{"time":"2022-12-30","value":0.00772846693337941},{"time":"2023-12-30","value":0.017357299129939344}],"ROA":[{"time":"2014-12-30","value":0.04224208770652178},{"time":"2015-12-30","value":0.04297787612000387},{"time":"2016-12-30","value":0.050909740329320996},{"time":"2017-12-30","value":0.03161564981540439},{"time":"2018-12-30","value":0.010376230204687227},{"time":"2019-12-30","value":0.002792835879220335},{"time":"2020-12-30","value":0.010557434819748827},{"time":"2021-12-30","value":0.014560510815692304},{"time":"2022-12-30","value":0.025957587835658026},{"time":"2023-12-30","value":0.030666754327469452}]}
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, 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. is headquartered in McLean, Virginia.
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DCF
Discounted Cash Flow Valuation of Iridium Communications Inc.
Value
Growth
%
%
Discount
%
%
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 | $252.3M | $301.8M | $356.2M | $414.6M | $475.8M | $538.3M | $600.3M | $659.6M | $714.1M | $761.4M | $799.4M | $7.994B |
| DCF | $262.4M | $269.3M | $272.6M | $272M | $267.6M | $259.5M | $248M | $233.4M | $216.4M | $197.6M | $1.976B | |
| Value | $4.475B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -11%
Earnings Stability -65%
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.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -2% | 22% | 49% | -4.5% | -30% | -9.6% | -1.5% | 1.2% | 1.9% | 3.2% |
| ROA | 4.3% | 5.1% | 3.2% | 1% | 0.28% | 1.1% | 1.5% | 2.6% | 3.1% | 4% |
| ROE | -0.68% | 7.1% | 14% | -1.5% | -11% | -3.9% | -0.72% | 0.77% | 1.7% | 3% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -7.02%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +3.8%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +1.58%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.5%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -2.5%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +1.59%.
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.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | -9.97 | -13.42 | -17.00 | 22.67 | 7.84 | 6.28 | 5.56 | 6.28 | - |
| Debt Equity | - | 1.34 | 1.18 | 1.36 | 1.25 | 1.17 | 1.27 | 1.35 | 1.71 | - |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | -23% | -170% | -590% | - | - | - | -590% |
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 1.81.
What is the Graham’s Stability?
Graham’s Stability measure stands at -5.86.
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.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 9% | 8.6% | 11% | 9.7% | 1.1% |
| Net Income | -23% | - | - | 77% | -8.6% |
| Stockholders Equity | -5.7% | -11% | -14% | -21% | -3.5% |
| FCF | - | - | 4.6% | -12% | -54% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +8.62%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +1.05%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -8.62%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -11.12%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -3.48%.
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 -54.21%.