Iridium Communications Inc.Find Ratings Reports
IRIDIUM COMMUNICATIONS INC's gross profit margin for the second quarter of its fiscal year 2020 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 strong liquidity. Currently, the Quick Ratio is 1.76 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 10.41% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY20||Q2 FY19|
|Net Sales ($mil)||140.17||143.1|
|Net Income ($mil)||-12.42||-18.11|
|Balance Sheet||Q2 FY20||Q2 FY19|
|Cash & Equiv. ($mil)||119.12||175.85|
|Total Assets ($mil)||3373.85||3917.06|
|Total Debt ($mil)||1620.12||1945.03|
|Profitability||Q2 FY20||Q2 FY19|
|Gross Profit Margin||74.89||72.76|
|Return on Assets||-5.03||-1.44|
|Return on Equity||-12.06||-4.12|
|Debt||Q2 FY20||Q2 FY19|
|Share Data||Q2 FY20||Q2 FY19|
|Shares outstanding (mil)||132.53||130.82|
|Div / share||0.0||0.0|
|Book value / share||10.63||12.02|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||732437.0||772751.0|
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. Conducting a second comparison, its price-to-book ratio of 2.67 indicates a discount versus the S&P 500 average of 3.76 and a premium versus the subsector average of 2.26. 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 seems to be trading at a premium to investment alternatives.
|IRDM NM||Peers 14.90||IRDM 15.76||Peers 12.61|
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 25.18||IRDM NA||Peers 3.17|
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 2.67||Peers 2.26||IRDM -130.35||Peers -5.51|
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 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 significantly trail its peers on the basis of its earnings growth rate.
|IRDM 6.62||Peers 2.12||IRDM 4.28||Peers -1.86|
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.