Iridium Communications Inc Common Stock (IRDM)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market offers Iridium at $46.73 as of 2026-10-13, and I ask whether that price leaves anything for a Graham-style investor. The company runs a specialized satellite network for remote land, aviation, maritime and government users—a niche with real barriers but heavy fixed costs. Top-line progress is steady: fiscal Q2 2026, the quarter ended 2026-06-30, had revenue of $225.2M versus $216.9M in fiscal Q2 2025, the quarter ended 2025-06-30. But net income fell to $9.7M from $22.0M, and diluted EPS fell to $0.09 from $0.20. For fiscal year 2025, revenue was $871.7M, net income $114.4M, and diluted EPS $1.06. FairStock’s P/E of 53.71, P/B of 10.48 and EV/EBITDA of 15.46 are not cheap, especially with that profit pressure. The balance sheet worries me: D/E of 3.79 and Altman Z-Score of 1.45 suggest a leveraged, capital-hungry operation, though trailing free cash flow of $288.3M gives a 5.8% FCF yield. FairStock’s Graham Number is $9.34, leaving a margin of safety of -400.32%. ROE of 19.71% looks good, but ROCE of 5.11% says capital employed is not earning enough. The Lynch category is STALWART, based on three-year profit growth of 135.8% a year and revenue growth of 6.5%, yet the latest quarter shows profit pressure. At this price, I see a quality niche but not a bargain.

In plain English: Iridium runs a satellite network that supplies voice and data links for ships, planes, governments and remote users. Sales are moving up, but profits have weakened lately and the company uses a lot of borrowed money. At $46.73, the shares look expensive compared with the earnings and assets the business has reported.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer