IDT Corporation Class B Common Stock (IDT)

FairStock Score: 62/100 — STEADY

Key Financials

Strengths

• Generates $72 million in annual free cash flow (5.5% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 26.3% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility

Concerns

• Trades significantly above Graham Number ($32) with negative 63% margin of safety—limited downside protection

AI Analysis

IDT Corporation Class B Common Stock is a micro-cap communication services company valued at $1.3 billion. The business generates $1.3 billion in annual revenue with a 1.7% net margin and $72 million in free cash flow. From a quality standpoint, IDT shows solid Piotroski F-Score of 7/9 and healthy Altman Z-Score of 4.0. On valuation, the stock is reasonably priced at 15.8x earnings, with trades above its Graham Number with a negative 63% margin. Growth dynamics show revenue growing at 5.7% and profit growth of 3.4%. Our composite FairStock Score of 62/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $72 million in annual free cash flow (5.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer