Iridium CommunicationsIRDM -3.54%69 Return-on-Tangible-Asset is 3.68% as of Mar. 2026, which is 756% above its 10-year median of 0.43. GuruFocus rates IRDM with a GF Score™ of 69/100 and a GF Value™ of $36.49 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 367 Telecommunication Services companies, Iridium Communications ranks better than 56.4% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Iridium Communications's annualizedNet Income for the quarter that ended in Mar. 2026 was $86.4 Mil. Iridium Communications's average total tangible assets for the quarter that ended in Mar. 2026 was $2,346.8 Mil. Therefore, Iridium Communications's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.68%.
The historical rank and industry rank for Iridium Communications's Return-on-Tangible-Asset or its related term are showing as below:
IRDM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -4.3 Med: 0.43 Max: 6.51
Current: 4.45
During the past 13 years, Iridium Communications's highest Return-on-Tangible-Asset was 6.51%. The lowest was -4.30%. And the median was 0.43%.
IRDM's Return-on-Tangible-Asset is ranked better than 56.4% of 367
companies
in the Telecommunication Services industry
Industry Median: 3.43
vs IRDM: 4.45
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Iridium Communications Return-on-Tangible-Asset Related Terms
Iridium Communications Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Iridium Communications's Return-on-Tangible-Asset 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.
IRDM vs LBRDA, TDS, LBTYA: Return-on-Tangible-Asset Comparison
For the Telecom Services subindustry, Iridium Communications's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Iridium Communications's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 3.68% mean?
Iridium Communications (IRDM) has a Return-on-Tangible-Asset of 3.68% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Iridium Communications and its competitors. This is 756% above median its historical median of 0.43. According to the industry distribution chart, Iridium Communications ranks #160 out of 367 companies in the Telecommunication Services industry, placing it in the top 43.6%.
Is Iridium Communications' Return-on-Tangible-Asset too high?
Iridium Communications' current Return-on-Tangible-Asset of 3.68% is 756% above median its 10-year median of 0.43. The Telecommunication Services industry median Return-on-Tangible-Asset is 3.43. Iridium Communications' value of 3.68% is 7.3% above this industry median. Based on the distribution chart, Iridium Communications ranks #160 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Iridium Communications has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iridium Communications' Return-on-Tangible-Asset compare to LBRDA and TDS?
According to the Telecommunication Services industry distribution chart, Iridium Communications ranks #160 out of 367 companies for Return-on-Tangible-Asset. This puts Iridium Communications in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.43. Iridium Communications' value of 3.68% is 7.3% above this benchmark. While the company's 10-year median is 0.43 vs. the industry median of 3.43, 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 Return-on-Tangible-Asset for a Telecommunication Services company?
The median Return-on-Tangible-Asset among Telecommunication Services companies is 3.43, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Iridium Communications's current Return-on-Tangible-Asset of 3.68% is 7.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Iridium Communications and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Asset is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iridium Communications's current Return-on-Tangible-Asset is 3.68%, which is 756% above median its own 10-year median of 0.43. 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 (IRDM) is currently considered Significantly Overvalued. The stock's GF Value™ is $36.49, compared to a current price of $53.75 — trading 47.3% above its estimated fair value. The current Return-on-Tangible-Asset is 3.68%, which is 756% above median its 10-year median of 0.43 and 7.3% above the Telecommunication Services industry median of 3.43. Iridium Communications' overall GF Score™ is 69/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Iridium Communications (IRDM), the current Return-on-Tangible-Asset is 3.68% 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 (IRDM) Overvalued in 2026?
Based on GuruFocus' analysis, Iridium Communications stock appears to be overvalued.
The current stock price of $53.75 is trading 47.3% above its estimated GF Value™ of $36.49.
GuruFocus considers Iridium Communications to be Significantly Overvalued.
Key valuation signals for IRDM:
Return-on-Tangible-Asset: 3.68% (756% above median its 10-year median of 0.43)
GF Value™: $36.49 vs. price of $53.75 (47.3% above fair value)
Industry Position: 7.3% above the Telecommunication Services median (#160 of 367)
No single metric tells the full story. See the IRDM 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.
69GF Score
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