Iridium CommunicationsIRDM +4.02%74 Return-on-Tangible-Equity is 30.77% as of Mar. 2026, which is 2530% above its 10-year median of 1.17. GuruFocus rates IRDM with a GF Score™ of 74/100 and a GF Value™ of $36.43 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 329 Telecommunication Services companies, Iridium Communications ranks better than 67.17% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Iridium Communications's annualized net income for the quarter that ended in Mar. 2026 was $86.4 Mil. Iridium Communications's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $280.7 Mil. Therefore, Iridium Communications's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 30.77%.
The historical rank and industry rank for Iridium Communications's Return-on-Tangible-Equity or its related term are showing as below:
IRDM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.93 Med: 1.17 Max: 36.64
Current: 36.64
During the past 13 years, Iridium Communications's highest Return-on-Tangible-Equity was 36.64%. The lowest was -10.93%. And the median was 1.17%.
IRDM's Return-on-Tangible-Equity is ranked better than 67.17% of 329
companies
in the Telecommunication Services industry
Industry Median: 13.8
vs IRDM: 36.64
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Iridium Communications Return-on-Tangible-Equity Related Terms
Iridium Communications Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Iridium Communications's Return-on-Tangible-Equity 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-Equity Comparison
For the Telecom Services subindustry, Iridium Communications's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Iridium Communications's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 30.77% mean?
Iridium Communications (IRDM) has a Return-on-Tangible-Equity of 30.77% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Iridium Communications and its competitors. This is 2530% above median its historical median of 1.17. According to the industry distribution chart, Iridium Communications ranks #108 out of 329 companies in the Telecommunication Services industry, placing it in the top 32.8%.
Is Iridium Communications' Return-on-Tangible-Equity too high?
Iridium Communications' current Return-on-Tangible-Equity of 30.77% is 2530% above median its 10-year median of 1.17. The Telecommunication Services industry median Return-on-Tangible-Equity is 13.80. Iridium Communications' value of 30.77% is 123% above this industry median. Based on the distribution chart, Iridium Communications ranks #108 out of 329 companies in the Telecommunication Services industry, which is above 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' Return-on-Tangible-Equity compare to LBRDA and TDS?
According to the Telecommunication Services industry distribution chart, Iridium Communications ranks #108 out of 329 companies for Return-on-Tangible-Equity. This puts Iridium Communications in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.80. Iridium Communications' value of 30.77% is 123% above this benchmark. While the company's 10-year median is 1.17 vs. the industry median of 13.80, 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-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 13.80, based on 329 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Iridium Communications's current Return-on-Tangible-Equity of 30.77% is 123% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Iridium Communications and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 13.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iridium Communications's current Return-on-Tangible-Equity is 30.77%, which is 2530% above median its own 10-year median of 1.17. 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 Modestly Overvalued. The stock's GF Value™ is $36.43, compared to a current price of $43.52 — trading 19.5% above its estimated fair value. The current Return-on-Tangible-Equity is 30.77%, which is 2530% above median its 10-year median of 1.17 and 123% above the Telecommunication Services industry median of 13.80. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Iridium Communications (IRDM), the current Return-on-Tangible-Equity is 30.77% 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 $43.52 is trading 19.5% above its estimated GF Value™ of $36.43.
GuruFocus considers Iridium Communications to be Modestly Overvalued.
Key valuation signals for IRDM:
Return-on-Tangible-Equity: 30.77% (2530% above median its 10-year median of 1.17)
GF Value™: $36.43 vs. price of $43.52 (19.5% above fair value)
Industry Position: 123% above the Telecommunication Services median (#108 of 329)
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.
74GF Score
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