Iridium CommunicationsHAM:6IC -1.94%74 Gross Margin % is 71.40% as of Mar. 2026, which is 1% below its 10-year median of 72.46. GuruFocus rates HAM:6IC with a GF Score™ of 74/100 and a GF Value™ of €29.55 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 342 Telecommunication Services companies, Iridium Communications ranks better than 82.75% on this metric.
HAM:6IC's Gross Margin % is ranked better than 82.75% of 342
companies
in the Telecommunication Services industry
Industry Median: 51.415
vs HAM:6IC: 71.57
Iridium Communications had a gross margin of 71.40% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Iridium Communications was -1.20% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Iridium Communications had a gross margin of 71.40% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Iridium Communications Gross Margin % Related Terms
Iridium Communications Gross Margin % Historical Data
* Premium members only.
The historical data trend for Iridium Communications's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:6IC vs LBRDA, TDS, LBTYA: Gross Margin % Comparison
For the Telecom Services subindustry, Iridium Communications's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Iridium Communications Gross Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Iridium Communications's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Iridium Communications (HAM:6IC) has a Gross Margin % of 71.40% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Iridium Communications and its competitors. This is near median its historical median of 72.46. Over the past decade, Iridium Communications' Gross Margin % has ranged from 71.53 to 75.54. According to the industry distribution chart, Iridium Communications ranks #59 out of 342 companies in the Telecommunication Services industry, placing it in the top 17.3%.
Is Iridium Communications' Gross Margin % too high?
Iridium Communications' current Gross Margin % of 71.40% is near median its 10-year median of 72.46. Over the past 10 years, this metric has ranged from a low of 71.53 to a high of 75.54. The Telecommunication Services industry median Gross Margin % is 51.42. Iridium Communications' value of 71.40% is 38.9% above this industry median. Based on the distribution chart, Iridium Communications ranks #59 out of 342 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Iridium Communications has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iridium Communications' Gross Margin % compare to LBRDA and TDS?
According to the Telecommunication Services industry distribution chart, Iridium Communications ranks #59 out of 342 companies for Gross Margin %. This places Iridium Communications in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.42. Iridium Communications' value of 71.40% is 38.9% above this benchmark. Historically, Iridium Communications' own Gross Margin % has ranged from 71.53 to 75.54 over the past decade. While the company's 10-year median is 72.46 vs. the industry median of 51.42, Iridium Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Telecommunication Services company?
The median Gross Margin % among Telecommunication Services companies is 51.42, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Iridium Communications's current Gross Margin % of 71.40% is 38.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Iridium Communications and its competitors. For the Telecommunication Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iridium Communications's current Gross Margin % is 71.40%, which is near median its own 10-year median of 72.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iridium Communications stock overvalued right now?
Based on GuruFocus' analysis, Iridium Communications (HAM:6IC) is currently considered Modestly Overvalued. The stock's GF Value™ is €29.55, compared to a current price of €35.30 — trading 19.5% above its estimated fair value. The current Gross Margin % is 71.40%, which is near median its 10-year median of 72.46 and 38.9% above the Telecommunication Services industry median of 51.42. Iridium Communications' overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Iridium Communications (HAM:6IC), the current Gross Margin % is 71.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Iridium Communications (HAM:6IC) Overvalued in 2026?
Based on GuruFocus' analysis, Iridium Communications stock appears to be overvalued.
The current stock price of €35.30 is trading 19.5% above its estimated GF Value™ of €29.55.
GuruFocus considers Iridium Communications to be Modestly Overvalued.
Key valuation signals for HAM:6IC:
Gross Margin %: 71.40% (near median its 10-year median of 72.46)
GF Value™: €29.55 vs. price of €35.30 (19.5% above fair value)
Industry Position: 38.9% above the Telecommunication Services median (#59 of 342)
No single metric tells the full story. See the HAM:6IC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iridium Communications Inc is the commercial provider of communications services offering true globalised coverage, connecting people, organizations, and assets to and from anywhere, in real time. The company is a provider of mobile voice and data communications services through a constellation of low-earth-orbiting satellites. Iridium's solutions are ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation, and utilities. Iridium also provides service to subscribers from the U.S. Department of Defense, as well as other civil and government agencies world-wide. The Company operates in one business segment, providing satellite communications services and products.
74GF Score
Get the complete analysis for HAM:6IC
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HAM:6IC has been successfully added to your 
