Iridium Communications’ Rapidly Rising Debt Causes Uncertain Future

Rupert Hargreaves

Published onSeptember 15, 2013

Updated on May 13, 2021

Iridium Communications Inc. (NASDAQ:IRDM) recently dropped 24 percent over a period of two days after a poor earnings report, and now looks to offer value.

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Iridium earnings growth

Before the decline, Iridium Communications Inc. (NASDAQ:IRDM) was only trading at a TTM P/E ratio of 10, despite notching up earnings growth of 170 percent during the last three years.

Now trading at a TTM earnings multiple of 7.8, the company looks cheap both for its historic earnings growth and compared to the value of its assets – Iridium is currently trading at a price-to-book ratio of 0.6, (net-asset-value of $11.80 per share or, $10.60 excluding...

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Rupert Hargreaves

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha

Iridium Communications’ Rapidly Rising Debt Causes Uncertain Future

Iridium earnings growth

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