Iridium Communications Inc. IRDM
Composite 48/100; the shares have moved about 68% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 39/100 — a slight mark against it.
Momentum ranks 66/100 — a moderate point in its favour. Income ranks 54/100 — a slight point in its favour. Quality ranks 52/100 — a slight point in its favour.
Valuation ranks 39/100 — a slight mark against it. Balance-sheet strength ranks 42/100 — a slight mark against it. Growth ranks 44/100 — a slight mark against it.
What the company does Iridium Communications provides global mobile satellite voice and data services, IoT connectivity, and hosted payload solutions for governments, enterprises, and consumers. Its network supports aviation, maritime, military, and emergency communications via a constellation of 66 low-Earth-orbit satellites.
Key financials Iridium reports strong gross margins of 72% but net margins of 11%. ROE is 20%, ROA 5%, and ROCE 9%. Revenue grew 4% YoY, but EPS fell 55%. Debt/Equity is 3.8x with interest coverage at 2.3x. Forward P/E is 42x, EV/EBITDA 15x, and FCF yield 5%.
Stock health Momentum is strong: +31% over 3 months, +127% over 6 months, and +99% over 12 months. RSI(14) is 51, indicating neutral momentum. The stock is 17% below its 52-week high. Sidera scores it average quality (60th percentile) with rich valuation (35th percentile).
Price vs fair value The stock trades at a PREMIUM of 9.50% to our fair-value estimate of 43.11 and a PREMIUM of 11.84% to the 12-month analyst target of 42.00. - Analysts highlight potential 38% upside if earnings and PNT launch materialize (Simply Wall St. 2026-07-28) - New anti-jamming PNT chip and mixed Q2 results are seen as catalysts (Simply Wall St. 2026-07-27) - SpaceX rival Rocket Lab’s Pentagon contract underscores competitive pressure (Investor's Business Daily 2026-07-27) - Valuation remains stretched with P/E of 53x and PEG of 3.3x
Looking forward Iridium’s growth hinges on IoT expansion and government contracts. Upcoming PNT technology launches may drive revenue, but high leverage and elevated multiples limit margin of safety. Execution on margin improvement and debt management will be critical to justify current valuation.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.