Iridium Communications IRDM
United StatesCommunication Services · Telecom ServicesUSD
42.00 USD (−13.2%)
5 analysts
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Iridium Communications operates a low-earth orbit satellite constellation providing global voice and data services, primarily for government, maritime, aviation, and remote industry customers.
Key points
from its scores- ✓Good share-price trend9.8
- ✓Favourable backdrop7.1
- ✕Weak growth2.7
- ✕Demanding valuation3.0
- !Modest dividend5.1
AI analysis
bottom line, main risk, context and newsThe quality of the business does not compensate for the extreme valuation and the decline in earnings.
Iridium presents a high-quality business with an ROE of 19.71% and a gross margin of 71.85%, but its valuation is very demanding (P/E 54.95, P/B 10.84) and earnings growth is negative (-55.00%), which undermines its appeal despite strong momentum of 161.80%.
The main risk is the combination of a very demanding valuation (P/E 54.95) with negative earnings growth (-55.00%), which could lead to a significant correction if the positive momentum reverses.
Context and risks
No recent relevant news and no material exposure to current macro factors (rates, oil, tariffs) that is not already reflected in its balance sheet and valuation metrics. The satellite communications business does not depend on shipping routes or commodities.
Is Iridium Communications stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 143% above the Communication Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 55.0 | 17.1 | +220% |
| EV / EBITDA | 15.9 | 9.6 | +66% |
| Price / book | 10.8 | 2.3 | +368% |
| Price / sales | 5.8 | 1.9 | +199% |
Sector: median of the 102 Communication Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.0 out of 10 (median for Communication Services: 6.3).
Average analyst target: 42.00 USD, −13.2% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 6.2 (sector 6.1), Growth 2.7 (sector 5.4).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Communication Services medianValuation
- P/E
- 55.0
- Forward P/E
- 28.2
- EV / EBITDA
- 15.9
- Price / book
- 10.8
- Price / sales
- 5.8
- PEG
- 1.91
- Market cap
- 5.1B USD
- Enterprise value
- 6.7B USD
Profitability
- ROE
- 19.7%
- ROA
- 5.1%
- ROIC (approx.)
- 5.9%
- Gross margin
- 71.9%
- Operating margin
- 15.1%
- Net margin
- 10.5%
- Free cash flow
- 239.2M USD
- FCF yield
- 4.7%
- Cash conversion
- 57%
Solvency
- Total debt
- 1.8B USD
- Net debt
- 1.6B USD
- Cash
- 184.2M USD
- EBITDA
- 423.4M USD
- Net debt / EBITDA
- 3.79
- Debt / equity
- 378.66
- Current ratio
- 2.78
- Quick ratio
- 2.13
Growth
- Revenue growth
- +3.8%
- Earnings growth
- −55.0%
- EPS (TTM)
- 0.88 USD
- EPS (forward)
- 1.72 USD
Dividend
- Dividend yield
- 1.2%
- Payout
- 68.2%
Risk and market
- Beta
- 0.85
- Analyst consensus
- none (5)
- Target price
- 42.00 USD
- 52-week range
- 15.65 – 57.18
Recent news
All IRDM news →Compare it with its sector
All 102 in Communication Services →Frequently asked questions about Iridium Communications
Is Iridium Communications stock cheap or expensive?
On P/E and EV / EBITDA, it trades 143% above the Communication Services median on average. Valuation score: 3.0 out of 10 (median for Communication Services: 6.3). Average analyst target: 42.00 USD, −13.2% versus the price. This is not investment advice.
What score does Iridium Communications get on MeridIAn Screener?
It scores 5.6 out of 10, rank 1,337 of 2,130 (better than 35% of the companies analysed). Its strongest category is Momentum (9.8) and its weakest, Growth (2.7). Analysis of 08/10/2026.
What is Iridium Communications's P/E ratio?
Its P/E is 55.0: the share price equals 55.0 times earnings per share over the last 12 months. The Communication Services median is 17.1. Based on the earnings analysts expect, the forward P/E is 28.2.
How much is Iridium Communications worth on the stock market?
Its market capitalisation is 5.1B USD and its enterprise value, debt included, is 6.7B USD.
How much debt does Iridium Communications have?
Its net debt (debt minus cash) is 1.6B USD. That is 3.79 times its EBITDA; the Communication Services median is 2.19.
Does Iridium Communications pay a dividend?
Yes: its dividend yield is 1.24% and it pays out 68% of its earnings.
How has Iridium Communications stock performed over the last year?
It has risen 168.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 15.65 and 57.18 USD. Past performance does not guarantee future results.
What do analysts think of Iridium Communications?
5 analysts cover it; their average recommendation is “none” and their average target is 42.00 USD (−13.2% versus the price). It is an estimate, not market data.