Stock fact sheet · data as of
Iridium Communications Inc. (IRDM): fair value, margin of safety and Wheel Score
Communication Services · Telecommunications Services · United States · Blend
Is IRDM undervalued?
At 44.99 (close of 16 Oct 2026), IRDM trades within a few percent of the GLS average fair value of 44.85 (exactly at fair value). 9 models produced a value and they split 5 above the price to 4 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: DDM gives 8.83 while DCF gives 98.66. 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.
The nightly engine files IRDM under Blend.
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 | 98.66 | +119% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 9.31 | -79% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 49.87 | +11% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 21.80 | -52% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 53.38 | +19% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 65.78 | +46% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 86.31 | +92% | 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 | 9.69 | -78% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -16.91 | -138% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 49.75 | +11% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health IRDM scores 9/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.4 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
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 1.33% with a payout ratio of 69% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Service 72%, Engineering and Support Services 19%, Subscription and Circulation 9% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 9 / 9 | ROIC | 5.1% |
|---|---|---|---|
| GLS Moat | 6.4 / 10 | ROE | 24.7% |
| Debt / equity | 3.81 | ROA | 4.5% |
| Free-cash-flow yield | 6.0% | Payout ratio | 69% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 81: Prime
IRDM scores 81 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 12/25), Piotroski health (20/20), the GLS moat (10/15), the option premium on offer (20/20) and how easily the stock trades (19/20).
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 17,736 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.3M shares a day on a market cap of $4.8B, with a beta of 0.85; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 12 / 25 | -0% margin of safety | |
| Health | 20 / 20 | Piotroski 9/9 | |
| Moat | 10 / 15 | moat 6.4/10 | |
| Premium | 20 / 20 | implied volatility 36% | |
| Stability | 19 / 20 | 2.3M shares/day, $4.8B cap, beta 0.85 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Iridium Communications Inc. reports earnings on 22 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
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. | 4.87 | 36.25 | +87% | 45Weak | $5.0B |
| TKC Turkcell Iletisim Hizmetleri A.S. | 5.03 | 182.74 | +97% | 87Prime | $4.4B |
| TEO Telecom Argentina S.A. | 12.46 | 9,252.82 | +100% | 74Good | $5.4B |
| PHI PLDT Inc. | 19.38 | 936.14 | +98% | 39No options | $4.2B |
| VEON VEON Ltd. | 80.46 | 82.98 | +3% | 66Good | $5.5B |
| LBTYB Liberty Global plc | 12.11 | 7.19 | -68% | 22No options | $3.7B |
| TDS Telephone and Data Systems, Inc. | 33.93 | 56.51 | +40% | 80Prime | $3.6B |
| LILAP Liberty Latin America Ltd. 9% Cum Perp Red Pfd Shs Series A When-issued | 20.06 | 45.03 | +55% | 39No options | $3.1B |
| AD Array Digital Infrastructure Inc | 33.51 | 112.42 | +70% | 45Weak | $2.9B |
| UZD Array Digital Infrastructure, Inc. 6.250% Senior Notes due 2069 | 17.54 | 125.50 | +86% | 39No options | $2.9B |
| UZE Array Digital Infrastructure, Inc. 5.500% Senior Notes due 2070 | 15.63 | 118.50 | +87% | 39No options | $2.9B |
| UZF Array Digital Infrastructure, Inc. 5.500% Senior Notes due 2070 | 15.63 | 118.50 | +87% | 39No options | $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 44.99 the stock trades within a few percent of the GLS average fair value of 44.85 (exactly at fair value, data as of 16 Oct 2026).
What is the Wheel Score of IRDM and what does it mean?
IRDM scores 81 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for IRDM?
44.85 per share as of 16 Oct 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?
The next earnings report is due on 22 Oct 2026 (before the open), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does IRDM have listed options, and how liquid are they?
Yes. The nightly snapshot found 218 listed contracts with 17,736 open interest across all expiries and implied volatility of 36% 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.