Iridium Communications Inc. (IRDM) Financial Ratios
19 years of historical data (2007–2025) · Communication Services · Telecommunications Services
EV/EBITDA
↓
14.29
-8% vs avg
5yr avg: 15.55
30Y Low3.9·High28.4
P/FCF
↓
15.72
↓-19% vs avg
5yr avg: 19.36
30Y Low1.1·High197.1
P/B Ratio
↓
10.39
↑+98% vs avg
5yr avg: 5.24
30Y Low0.5·High6.0
ROE
↑
22.0%
↓+182% vs avg
5yr avg: 7.8%
30Y Low-18%·High22%
Debt/EBITDA
↓
3.95
↓-5% vs avg
5yr avg: 4.14
30Y Low0.2·High7.6
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
IRDM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Iridium Communications Inc. trades at 42.0x earnings, 85% below its 5-year average of 289.4x, sitting at the 100th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.3x, the stock trades at a premium of 175%. On a free-cash-flow basis, the stock trades at 15.7x P/FCF, 19% below the 5-year average of 19.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.7B | $1.9B | $3.5B | $5.2B | $6.7B | $5.5B | $5.3B | $3.1B | $2.1B | $1.2B | $920M |
| Enterprise Value | $6.4B | $3.5B | $5.2B | $6.7B | $8.0B | $6.8B | $6.7B | $4.7B | $3.8B | $2.6B | $2.2B |
| P/E Ratio → | 42.05 | 16.40 | 30.87 | 343.00 | 767.16 | — | — | — | — | 5.32 | 9.60 |
| P/S Ratio | 5.41 | 2.15 | 4.18 | 6.62 | 9.28 | 8.97 | 9.00 | 5.50 | 3.96 | 2.59 | 2.12 |
| P/B Ratio | 10.39 | 4.05 | 6.03 | 5.90 | 5.93 | 4.28 | 3.70 | 2.11 | 1.29 | 0.73 | 0.68 |
| P/FCF | 15.72 | 6.25 | 17.80 | 21.69 | 29.93 | 21.15 | 24.87 | 38.40 | — | — | — |
| P/OCF | 11.78 | 4.68 | 9.25 | 16.63 | 19.40 | 18.20 | 21.02 | 15.57 | 7.85 | 4.46 | 4.09 |
P/E links to full P/E history page with 30-year chart
IRDM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Iridium Communications Inc.'s enterprise value stands at 14.3x EBITDA, 8% below its 5-year average of 15.6x. The Communication Services sector median is 9.6x, placing the stock at a 49% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.06 | 6.25 | 8.43 | 11.13 | 11.09 | 11.40 | 8.33 | 7.17 | 5.75 | 5.09 |
| EV / EBITDA | 14.29 | 7.93 | 12.76 | 16.60 | 21.11 | 19.37 | 19.65 | 15.16 | 14.44 | 11.53 | 9.77 |
| EV / EBIT | 27.02 | 14.99 | 24.42 | 68.31 | 97.18 | 151.36 | 690.51 | — | 108.79 | 21.54 | 12.29 |
| EV / FCF | — | 11.80 | 26.57 | 27.61 | 35.92 | 26.13 | 31.52 | 58.10 | — | — | — |
IRDM Profitability
Margins and return-on-capital ratios measuring operating efficiency
Iridium Communications Inc. earns an operating margin of 27.1%, significantly above the Communication Services sector average of 1.6%. Operating margins have expanded from 15.1% to 27.1% over the past 3 years, signaling improving operational efficiency. ROE of 22.0% indicates solid capital efficiency. ROIC of 8.0% represents adequate returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.3% | 77.3% | 47.8% | 35.8% | 30.0% | 25.8% | 23.6% | 21.0% | 31.0% | 44.8% | 63.4% |
| Operating Margin | 27.1% | 27.1% | 24.5% | 15.1% | 10.6% | 7.5% | 6.1% | 1.8% | 8.0% | 22.6% | 40.7% |
| Net Profit Margin | 13.1% | 13.1% | 13.6% | 1.9% | 1.2% | -1.5% | -9.6% | -28.9% | -2.6% | 52.2% | 25.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 22.0% | 22.0% | 15.4% | 1.5% | 0.7% | -0.7% | -3.9% | -10.6% | -0.8% | 15.9% | 8.6% |
| ROA | 4.4% | 4.4% | 4.2% | 0.5% | 0.3% | -0.3% | -1.6% | -4.2% | -0.3% | 6.4% | 3.3% |
| ROIC | 8.0% | 8.0% | 6.6% | 3.7% | 2.3% | 1.3% | 0.9% | 0.2% | 1.0% | 2.7% | 5.1% |
| ROCE | 9.6% | 9.6% | 8.1% | 4.5% | 2.6% | 1.5% | 1.1% | 0.3% | 1.1% | 2.9% | 5.4% |
IRDM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Iridium Communications Inc. carries a Debt/EBITDA ratio of 3.9x, which is moderately leveraged (9% above the sector average of 3.6x). Net debt stands at $1.7B ($1.8B total debt minus $97M cash). Interest coverage of just 2.7x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.81 | 3.81 | 3.13 | 1.69 | 1.34 | 1.26 | 1.16 | 1.24 | 1.22 | 1.07 | 1.23 |
| Debt / EBITDA | 3.95 | 3.95 | 4.44 | 3.74 | 3.96 | 4.61 | 4.84 | 5.87 | 7.53 | 7.62 | 7.34 |
| Net Debt / Equity | — | 3.60 | 2.97 | 1.61 | 1.19 | 1.01 | 0.99 | 1.08 | 1.05 | 0.89 | 0.96 |
| Net Debt / EBITDA | 3.73 | 3.73 | 4.21 | 3.56 | 3.52 | 3.70 | 4.14 | 5.14 | 6.47 | 6.34 | 5.70 |
| Debt / FCF | — | 5.55 | 8.77 | 5.92 | 5.99 | 4.99 | 6.65 | 19.71 | — | — | — |
| Interest Coverage | 2.67 | 2.67 | 2.07 | 0.95 | 1.15 | 0.61 | 0.10 | -0.56 | 0.63 | 4784.07 | — |
IRDM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Iridium Communications Inc.'s current ratio of 2.48x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.82x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 2.06x to 2.48x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.48 | 2.48 | 1.73 | 2.06 | 2.16 | 3.90 | 3.04 | 3.01 | 1.49 | 1.92 | 6.21 |
| Quick Ratio | 1.82 | 1.82 | 1.25 | 1.37 | 1.88 | 3.63 | 2.75 | 2.66 | 1.38 | 1.83 | 5.99 |
| Cash Ratio | 0.86 | 0.86 | 0.55 | 0.55 | 1.19 | 2.95 | 2.16 | 1.97 | 1.04 | 1.39 | 4.93 |
| Asset Turnover | — | 0.34 | 0.31 | 0.30 | 0.24 | 0.19 | 0.17 | 0.15 | 0.13 | 0.12 | 0.12 |
| Inventory Turnover | 2.68 | 2.68 | 5.34 | 5.57 | 12.69 | 15.69 | 13.73 | 11.09 | 13.11 | 12.31 | 8.71 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
IRDM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Iridium Communications Inc. returns 5.3% to shareholders annually — split between a 1.3% dividend yield and 4.0% buyback yield. A payout ratio of 55.0% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 2.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.3% | 3.4% | 1.9% | 1.2% | — | — | — | 0.3% | 0.7% | 0.3% | 1.7% |
| Payout Ratio | 55.0% | 55.0% | 57.4% | 420.2% | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 6.1% | 3.2% | 0.3% | 0.1% | — | — | — | — | 18.8% | 10.4% |
| FCF Yield | 6.4% | 16.0% | 5.6% | 4.6% | 3.3% | 4.7% | 4.0% | 2.6% | — | — | — |
| Buyback Yield | 4.0% | 9.9% | 11.7% | 4.7% | 3.8% | 3.0% | 0.0% | 0.0% | 0.1% | 0.2% | 0.1% |
| Total Shareholder Yield | 5.3% | 13.3% | 13.6% | 6.0% | 3.8% | 3.0% | 0.0% | 0.3% | 0.8% | 0.5% | 1.7% |
| Shares Outstanding | — | $108M | $120M | $127M | $130M | $134M | $133M | $125M | $112M | $98M | $96M |
Peer Comparison
Compare IRDM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 IRDMYou | $5B | 42.0 | 14.3 | 15.7 | 77.3% | 27.1% | 22.0% | 8.0% | 3.9 |
 VSAT | $9B | -256.5 | 9.5 | 14.7 | 27.4% | 2.3% | -0.7% | 0.8% | 4.7 |
 GSAT | $10B | -536.1 | 102.4 | 134.9 | 64.8% | 5.4% | -2.4% | 2.3% | 5.4 |
 GILT | $842M | 38.8 | 15.6 | 91.6 | 29.5% | 4.5% | 5.2% | 5.7% | 0.3 |
 ASTS | $24B | -60.2 | — | — | 53.4% | -405.7% | -22.3% | -16.8% | — |
 SATS | $31B | -2.2 | — | — | 37.1% | -118.1% | -178.7% | -32.9% | — |
 TSAT | $670M | -6.1 | 19.4 | — | 36.8% | 13.7% | -7.3% | 0.9% | 17.1 |
 LMT | $118B | 23.8 | 16.0 | 17.0 | 10.2% | 10.3% | 76.9% | 23.9% | 2.6 |
 BA | $176B | 89.8 | — | — | 4.8% | -6.1% | 289.7% | -9.5% | — |
 NOC | $74B | 17.9 | 15.5 | 22.4 | 19.8% | 10.2% | 26.2% | 10.2% | 3.4 |
 SPCE | $222M | -0.7 | — | — | -5680.7% | -18335.0% | -93.6% | -41.7% | — |
| Communication Services Median | — | 15.3 | 9.6 | 11.4 | 48.5% | 1.6% | 2.0% | 2.6% | 3.6 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 19 years · Updated daily
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IRDM — Frequently Asked Questions
Quick answers to the most common questions about buying IRDM stock.
What is Iridium Communications Inc.'s P/E ratio?
Iridium Communications Inc.'s current P/E ratio is 42.0x. The historical average is 15.3x. This places it at the 100th percentile of its historical range.
What is Iridium Communications Inc.'s EV/EBITDA?
Iridium Communications Inc.'s current EV/EBITDA is 14.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.8x.
What is Iridium Communications Inc.'s ROE?
Iridium Communications Inc.'s return on equity (ROE) is 22.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 2.8%.
Is IRDM stock overvalued?
Based on historical data, Iridium Communications Inc. is trading at a P/E of 42.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Iridium Communications Inc.'s dividend yield?
Iridium Communications Inc.'s current dividend yield is 1.31% with a payout ratio of 55.0%.
What are Iridium Communications Inc.'s profit margins?
Iridium Communications Inc. has 77.3% gross margin and 27.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Iridium Communications Inc. have?
Iridium Communications Inc.'s Debt/EBITDA ratio is 3.9x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.