Iridium CommunicationsHAM:6IC -1.94%74 Interest Coverage is 2.62 as of Mar. 2026, which is 216% above its 10-year median of 0.83. 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 284 Telecommunication Services companies, Iridium Communications ranks worse than 69.01% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Iridium Communications's
Operating Income
for the
three
months ended in Mar. 2026 was €43.9 Mil. Iridium Communications's Interest Expense for the
three
months ended in Mar. 2026 was €-16.8 Mil.
Iridium Communications's interest coverage for the quarter that ended in Mar. 2026 was 2.62.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Iridium Communications's Interest Coverage or its related term are showing as below:
HAM:6IC'
s Interest Coverage Range Over the Past 10 Years
Min: 0.09 Med: 0.83 Max: 2.67
Current: 2.64
HAM:6IC's Interest Coverage is ranked worse than 69.01% of 284
companies
in the Telecommunication Services industry
Industry Median: 4.685
vs HAM:6IC: 2.64
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Iridium Communications Interest Coverage Related Terms
Iridium Communications Interest Coverage Historical Data
* Premium members only.
The historical data trend for Iridium Communications's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
HAM:6IC vs LBRDA, TDS, LBTYA: Interest Coverage Comparison
For the Telecom Services subindustry, Iridium Communications's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Iridium Communications's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Iridium Communications (HAM:6IC) has a Interest Coverage of 2.62 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Iridium Communications and its competitors. This is 216% above median its historical median of 0.83. Over the past decade, Iridium Communications' Interest Coverage has ranged from 0.09 to 2.67. According to the industry distribution chart, Iridium Communications ranks #196 out of 284 companies in the Telecommunication Services industry, placing it in the top 69%.
Is Iridium Communications' Interest Coverage too high?
Iridium Communications' current Interest Coverage of 2.62 is 216% above median its 10-year median of 0.83. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 2.67. The Telecommunication Services industry median Interest Coverage is 4.69. Iridium Communications' value of 2.62 is 44.1% below this industry median. Based on the distribution chart, Iridium Communications ranks #196 out of 284 companies in the Telecommunication Services industry, which is below the industry midpoint. 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' Interest Coverage compare to LBRDA and TDS?
According to the Telecommunication Services industry distribution chart, Iridium Communications ranks #196 out of 284 companies for Interest Coverage. This places Iridium Communications in the lower half of its industry. The industry median Interest Coverage is 4.69. Iridium Communications' value of 2.62 is 44.1% below this benchmark. Historically, Iridium Communications' own Interest Coverage has ranged from 0.09 to 2.67 over the past decade. While the company's 10-year median is 0.83 vs. the industry median of 4.69, Iridium Communications has consistently been below 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 Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Iridium Communications's current Interest Coverage of 2.62 is 44.1% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Iridium Communications and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iridium Communications's current Interest Coverage is 2.62, which is 216% above median its own 10-year median of 0.83. 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 Interest Coverage is 2.62, which is 216% above median its 10-year median of 0.83 and 44.1% below the Telecommunication Services industry median of 4.69. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Iridium Communications (HAM:6IC), the current Interest Coverage is 2.62 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:
Interest Coverage: 2.62 (216% above median its 10-year median of 0.83)
GF Value™: €29.55 vs. price of €35.30 (19.5% above fair value)
Industry Position: 44.1% below the Telecommunication Services median (#196 of 284)
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
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