Iridium Communications

IRDM

Telecommunications Services · Communication Services

Also trades as: 0JDO.L

Price

$48.98

+0.53 (+1.09%)

Market Cap

$5.19B

Exchange

NASDAQ

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Exceptional

Stability

Weak

Valuation

Good

Dividends

Mixed

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Share count falling — buybacks

−19.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 133.5M (2021) → 107.8M (2025)

Winston Score History

The full picture

Iridium Communications runs a global satellite network that lets people make phone calls, send messages, and share data from anywhere on Earth — even the middle of the ocean or the Arctic. Its customers include the U.S. military, shipping companies, airlines, emergency responders, and outdoor adventurers who need reliable communication where regular cell service doesn't reach. Iridium is unique because it operates the only truly pole-to-pole satellite network, made up of 66 low-Earth orbit satellites that cover every inch of the planet's surface.

The company earns money mainly through monthly service subscriptions, along with sales of satellite phones and connected devices. It operates globally by definition — its network has no geographic gaps — and generated roughly $800 million in annual revenue in recent periods. Its biggest competitive advantage is that no other commercial network matches its complete global coverage, but its main risk is heavy debt taken on to build its second-generation satellite constellation, which limits financial flexibility as the network matures.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-55.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$20M/ year

↓ Declining (-30% vs prior year)

2.3% of revenue

Below sector average (12%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

11.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$222M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Iridium Communications is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

77.2%

Premium pricing power — 77.2% gross margin

Profit after running costs

Operating Margin

15.1%

Healthy — 15.1% operating margin

Return on the money invested

ROCE

9.4%

Below par — 9.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+3.1%

Slow sales growth (+3.1% YoY)

Profit growth

EPS YoY

-12.9%

Earnings shrinking (-12.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

416%

Turns 416% of profit into real cash

Spare cash per sale

FCF Margin

31.8%

Converts sales into free cash efficiently (31.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

3.73

Heavy debt load (3.73)

Covers its interest

Interest Cover

2.31x

Tight — interest eats into profit (2.3x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

55.7x

Expensive — P/E 55.7

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+26.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (55.7 → 29.2)

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Dividends

Dividend

Dividend Yield

1.25%

Small dividend — 1.25% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+7.1%

Dividend growing modestly (7.1% YoY)

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