Iridium Communications Inc.Find Ratings Reports
IRIDIUM COMMUNICATIONS INC's gross profit margin for the second quarter of its fiscal year 2019 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. IRIDIUM COMMUNICATIONS INC has weak liquidity. Currently, the Quick Ratio is 0.94 which shows a lack of 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 remained virtually unchanged only decreasing by 2.10% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY19||Q2 FY18|
|Net Sales ($mil)||143.1||134.93|
|Net Income ($mil)||-18.11||-4.42|
|Balance Sheet||Q2 FY19||Q2 FY18|
|Cash & Equiv. ($mil)||175.85||375.94|
|Total Assets ($mil)||3917.06||4079.88|
|Total Debt ($mil)||1945.03||2030.12|
|Profitability||Q2 FY19||Q2 FY18|
|Gross Profit Margin||72.76||71.64|
|Return on Assets||-1.44||4.36|
|Return on Equity||-4.12||10.23|
|Debt||Q2 FY19||Q2 FY18|
|Share Data||Q2 FY19||Q2 FY18|
|Shares outstanding (mil)||130.82||110.75|
|Div / share||0.0||0.0|
|Book value / share||12.02||14.51|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||849954.0||964777.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.86 indicates a discount versus the S&P 500 average of 3.24 and a discount versus the subsector average of 2.61. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. The valuation analysis reveals that, IRIDIUM COMMUNICATIONS INC seems to be trading at a premium to investment alternatives.
|IRDM NM||Peers 18.09||IRDM 14.31||Peers 7.54|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
IRDM's P/E is negative making this valuation measure meaningless.
Premium. 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 premium to its peers.
|IRDM NM||Peers 12.50||IRDM NA||Peers 0.64|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
IRDM's ratio is negative making this valuation measure meaningless.
Neutral. 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.
Ratio not available.
|IRDM 1.86||Peers 2.61||IRDM -142.74||Peers -34.90|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
IRDM is trading at a significant discount 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 significantly trail its peers on the basis of its earnings growth rate.
|IRDM 5.37||Peers 1.88||IRDM 12.26||Peers 6.14|
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.