Stock analysis · Bull Rankings model

IRDM analysis

Iridium Communications Inc.Telecom Services. Scored on the same transparent model behind the daily rankings.

Space
IRDM
Iridium Communications Inc. · Telecom Services
FCF$288mC
Rev+3.1%C+
D/E3.79D
P/E54.8xC
PEG3.27D
44.3Score
$47.64$5.0B
1Y Target$42.00Analyst consensus · 5 analysts
5Y Target$61.49Compound horizon
10Y Target$91.22Long-dated conviction
FCF$288mTTM
C
FCF $288m — modest; watch for margin expansion
Rev+3.1%TTM YoY
C+
Revenue +3.1% — steady but below market-beating range
D/E3.79
D
D/E 3.79 — most levered decile in Communication Services (≈95th pctile)
P/E54.8x
C
P/E 54.8 — expensive vs Communication Services peers (≈90th pctile)
PEG3.27
D
PEG 3.27 — very expensive; pricing in best-case scenarios

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 44.3
Quality0.65
Growth0.49
Value0.27
Why this score
  • Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week high
17% off the 12-month high
vs DCF fair value33% belowest. fair value ~$71
What the price assumes: free cash flow compounding at ~5% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability33% · B+gross profit ÷ total assets (Novy-Marx)
ROIC7.4% · C+return on invested capital — not score-weighted
Why now
Telecom Services · market cap $5.0b. 17% off the 52-week high of $57.18. 5 sell-side analysts rate this a Buy with a mean 1-yr target of $42.00 (implying -12% upside).
Moat
ROE 20% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
D/E 3.79 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trailing P/E 54.8x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating.
Horizon
1-3 yr $42.00 (5-analyst consensus) — fundamentals + valuation re-rating. 5 yr $61.49 at ~5% CAGR — compounding case rests on the competitive position widening. 10 yr $91.22 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
-8.3 over 30 daily scores
From 52.6 (Jun 22) → 44.3 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
41
Position size
$1,953
3.9% of portfolio
Stop price
$35.73
25% below $47.64
$ at risk if stopped
$488.31
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Iridium Communications Inc. (IRDM): score, valuation & FAQ

Iridium Communications Inc. (IRDM) is a Telecom Services company that scores 44.3 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

The model flags D/E (D) and PEG (D) as weaker areas. On valuation, IRDM sits about 33% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 5% annual free-cash-flow growth over the next decade.

Is IRDM a good stock to buy?

Bull Rankings scores IRDM 44.3 out of 100 on its quality-growth model, which is a below-average reading. A score is a quantitative screen of Iridium Communications Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does IRDM score 44.3 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). IRDM grades middle-of-pack across the strip, and is held back by D/E (D) and PEG (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is IRDM overvalued or undervalued?

Based on $47.64, IRDM sits about 33% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 5% annual free-cash-flow growth over the next decade. It trades at a 54.8x× P/E (graded C). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in IRDM?

D/E 3.79 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trailing P/E 54.8x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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