Stock fact sheet · data as of
Iridium Communications Inc. (IRDM): fair value, margin of safety and Wheel Score
Ticker symbol IRDM · Communication Services · Telecommunications Services · United States · Growth
Is IRDM undervalued?
At 43.81 (close of 5 Nov 2026), IRDM trades within a few percent of the GLS average fair value of 47.63 (8.0% below fair value). 9 models produced a value and they split 4 above the price to 5 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
The 9 models disagree widely: Lynch gives 6.07 while Payback Time gives 102.37. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, IRDM is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 23, growth score 63, out of 100).
Nine valuation models for IRDM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 101.14 | +131% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 13.55 | -69% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 24.50 | -44% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 6.07 | -86% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 92.96 | +112% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 62.41 | +42% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 102.37 | +134% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 8.83 | -80% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 16.87 | -61% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -16.91 | -139% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 51.33 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - IRDM passes 6 of the nine Piotroski tests, which passes the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.9 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are moderate - ROIC 5.1%, ROE 24.7%, ROA 4.5% - with debt at 3.81 times equity and a free-cash-flow yield of 6.0%. Debt of 3.81 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 1.37% with a payout ratio of 40% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Service 76%, Engineering and Support Services 16%, Subscription and Circulation 8% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 5.1% |
|---|---|---|---|
| GLS Moat | 3.9 / 10 | ROE | 24.7% |
| Debt / equity | 3.81 | ROA | 4.5% |
| Free-cash-flow yield | 6.0% | Payout ratio | 40% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 35: Weak
IRDM scores 35 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 5, can repay its debt - 4.4 years to repay its debt (over 3), and the parts are thin too - value weak, premium strong, moat fair, health good, red flags weak, option trading weak, stability good. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 39% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 7,007 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 645k shares a day on a market cap of $4.6B, with a beta of 0.87; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | 4.4 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 8% below fair value | |
| Premium | Strong | implied volatility 39% | |
| Moat | Fair | moat 3.9/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Weak | Red Flags score 60/100 | |
| Option trading | Weak | 259 contracts a day, 7,007 open interest | |
| Stability | Good | beta 0.87, $4.6B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for IRDM in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Telecommunications Services
The 12 companies below are the closest to Iridium Communications Inc. by market cap within the Telecommunications Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| LUMN Lumen Technologies, Inc. | 4.47 | 0.6769 | -560% | 22Weak | $4.6B |
| TEO Telecom Argentina S.A. | 10.44 | 47.23 | +78% | 42Weak | $4.9B |
| TKC Turkcell Iletisim Hizmetleri A.S. | 4.73 | 18.98 | +75% | 47Weak | $4.1B |
| VEON VEON Ltd. | 79.01 | 82.59 | +4% | 70Good | $5.4B |
| PHI PLDT Inc. | 18.12 | 42.74 | +58% | 37No options | $3.9B |
| TDS Telephone and Data Systems, Inc. | 36.01 | 56.51 | +36% | 79Good | $3.9B |
| LBTYB Liberty Global plc | 11.76 | - | - | 15No options | $3.6B |
| LBTYA Liberty Global plc | 9.58 | - | - | 33Weak | $3.2B |
| LBTYK Liberty Global plc | 9.34 | - | - | 27Weak | $3.2B |
| KYIV Kyivstar Group Ltd. Common Shares | 13.62 | 28.80 | +53% | 83Good | $3.1B |
| LILAP Liberty Latin America Ltd. 9% Cum Perp Red Pfd Shs Series A When-issued | 19.90 | 37.96 | +48% | 25No options | $3.1B |
| AD Array Digital Infrastructure Inc | 33.23 | 112.42 | +70% | 34Weak | $2.9B |
⚖ Compare IRDM with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about IRDM
Is IRDM undervalued right now?
Not meaningfully: at 43.81 the stock trades within a few percent of the GLS average fair value of 47.63 (8.0% below fair value, data as of 5 Nov 2026).
What is the Wheel Score of IRDM and what does it mean?
IRDM scores 35 out of 100 (Weak) - it fails Wheel Trade Filter 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for IRDM?
47.63 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Iridium Communications Inc. report earnings next?
No upcoming earnings date is recorded for IRDM in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does IRDM have listed options, and how liquid are they?
Yes. The nightly snapshot found 42 listed contracts with 7,007 open interest across all expiries and implied volatility of 39% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.