Iridium Communications Inc
Find Ratings ReportsIRIDIUM COMMUNICATIONS INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. IRIDIUM COMMUNICATIONS INC has average liquidity. Currently, the Quick Ratio is 1.24 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 21.30% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 192.74 | 193.84 |
EBITDA ($mil) | 97.08 | 94.52 |
EBIT ($mil) | 18.8 | 18.77 |
Net Income ($mil) | 38.02 | -0.81 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 71.87 | 168.77 |
Total Assets ($mil) | 2661.78 | 2954.01 |
Total Debt ($mil) | 1500.9 | 1506.77 |
Equity ($mil) | 888.1 | 1128.56 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 71.15 | 70.61 |
EBITDA Margin | 50.36 | 48.76 |
Operating Margin | 9.75 | 9.68 |
Sales Turnover | 0.3 | 0.24 |
Return on Assets | 0.57 | 0.29 |
Return on Equity | 1.74 | 0.77 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.06 | 2.16 |
Debt/Capital | 0.63 | 0.57 |
Interest Expense | 22.54 | 21.81 |
Interest Coverage | 0.83 | 0.86 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 122.78 | 125.9 |
Div / share | 0.13 | 0.0 |
EPS | 0.3 | -0.01 |
Book value / share | 7.23 | 8.96 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 961297.0 | 779994.0 |
HOLD. IRIDIUM COMMUNICATIONS INC's P/E ratio indicates a significant premium compared to an average of 18.90 for the Telecommunications subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 3.78 indicates a discount versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 2.06. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, IRIDIUM COMMUNICATIONS INC proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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IRDM 210.15 | Peers 18.90 | IRDM 10.65 | Peers 17.10 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. IRDM is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. IRDM is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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IRDM 32.14 | Peers 10.66 | IRDM 0.43 | Peers 0.70 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. IRDM is trading at a significant premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. IRDM trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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IRDM 3.78 | Peers 2.06 | IRDM 85.71 | Peers 102.71 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. IRDM is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, IRDM is expected to trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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IRDM 4.25 | Peers 1.91 | IRDM 9.38 | Peers 5.82 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. IRDM is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. IRDM has a sales growth rate that significantly exceeds its peers. |
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