IRDMThe company demonstrates solid fundamental strength with consistent profitability improvements and stable financial health, coupled with moderate thematic relevance. Technical indicators suggest some near-term caution but overall positive momentum. Suitable for growth investors with a medium to long-term horizon.
Iridium Communications operates in the satellite communications sector, serving diverse markets including government and commercial customers, with involvement in IoT and specialized communications. While not in a fast-growing cutting-edge tech sector, its niche positioning and stable demand for satellite communications provide thematic appeal.
Iridium Communications displays improving profitability with solid net margins, a healthy balance sheet, and good free cash flow generation. Its valuation remains on the higher side, reflecting growth expectations embedded in the price.
Technical indicators depict a stock with mixed short-term momentum but solid support from longer-term moving averages. The stock is trading near key pivot levels with oscillators mostly neutral, suggesting cautious optimism.
| Factor | Score |
|---|---|
| Sector Relevance | 75 |
| Innovation & Technology | 68 |
| Market Trends Fit | 67 |
| Regulatory Environment | 70 |
| Sustainability & ESG | 70 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 85 |
| Growth | 80 |
| Balance Sheet Health | 50 |
| Cash Flow | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 70 |
| Momentum | 60 |
| Volume Confirmation | 65 |
| Support & Resistance | 65 |
Strong and Consistent Earnings Growth
The company reported steady EPS growth with recent quarters surpassing estimates by significant margins, including a 98.4% surprise in Q1 2025 and positive surprises in consecutive quarters, demonstrating strong profitability momentum.
Increasing Dividend Yield and Consistent Payments
Dividend yield has improved recently, reaching as high as 2.1%, with regular payments maintained and the next ex-dividend date set for June 13, 2025, indicating commitment to shareholder returns.
Elevated Valuation Multiples
Trailing P/E stands at approximately 37.0 (TTM) and quarterly P/E ratios are considerably elevated (e.g., 96.7 in Q1 2025), indicating the stock may be priced for strong growth which could be challenging to sustain.
Volatile Net Income and Margins
Though recent quarters show improvement, net income has fluctuated markedly over recent years with net margins ranging from negative to 13.6%, reflecting variability in operational profitability.
June 2025
13
Ex-Dividend Date
June 2025
30
Next Dividend Date
July 2025
24
Next Earnings Date
H: $0.29
A: $0.24
L: $0.20
H: 219.80M
A: 214.72M
L: 209.73M
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 mobile satellite communications services for land mobile end users and aviation sectors; broadband terminals, embedded devices, and handsets for merchant shipping, fishing, leisure and research vessels, and specialized watercraft; satellite-based IoT services; hosted payload and other data services; and other data services and engineering services. It also provides postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; Internet of Things (IoT); and satellite time and location services. In addition, the company offers 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; and mobile communications and data devices for the military and other government agencies, such as secure satellite handsets; and maintenance services for the U.S. government's dedicated gateway. Further, it provides satellite handsets, voice and data modems, broadband data devices, and IoT data devices; and various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, charging units, and others. The company 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.
38.62 USD
The 39 analysts offering 1 year price forecasts for IRDM have a max estimate of 47.00 and a min estimate of 25.00.