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Iridium Communications

IRDM
54
Telecommunications Services · Communication Services
Also trades as: 0JDO.L GBP 0.44 (+2.57%)
Price
$44.40
+0.61 (+1.39%)
Market Cap
$4.71B
Exchange
NASDAQ
Winston Score
54
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 23, 2026 · filings through Sep 30, 2026

§How the score breaks down

Quality
Good
18/30
Growth
Good
10/20
Cash Flow
Exceptional
10/10
Stability
Weak
1/10
Valuation
Mixed
3/10
Ownership
Good
10/15
Dividends
Mixed
2/5

54 of 100 counted points = Winston Score 54.

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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

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

Revenue Growth

+8.3% YoY

YoY Growth Rate

Slow revenue growth

Reported EPS Growth

+185.7% YoY

Quarterly reporting periods ended:

30 Sept 2025: $0.35

30 Sept 2026: $1.00

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

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

$99M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth context

Iridium Communications is growing revenue at 8% 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
70.6%
Premium pricing power — 70.6% gross margin
Profit after running costs
Operating Margin
12.9%
Healthy — 12.9% operating margin
Return on the money invested
ROCE
6.3%
Weak — 6.3% 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
+3.6%
Slow sales growth (+3.6% YoY)
Profit growth
EPS YoY
+33.0%
Earnings growing fast (+33.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

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
239%
Turns 239% of profit into real cash
Spare cash per sale
FCF Margin
30.7%
Converts sales into free cash efficiently (30.7%)

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
3.71
Heavy debt load (3.71)
Covers its interest
Interest Cover
1.85x
Dangerous — barely covers interest (1.9x)

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)
29.0x
Growth-priced — P/E 29.0

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
-4.5
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
1.23%
Small dividend — 1.23% yield

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

Dividend record
Dividend Growth
+5.3%
Dividend growing modestly (5.3% YoY)
Payout Ratio
40%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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