Iridium CommunicationsHAM:6IC -1.94%74 ROE % is 18.67% as of Mar. 2026, which is 1552% above its 10-year median of 1.13. 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 349 Telecommunication Services companies, Iridium Communications ranks better than 80.8% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Telecom Services subindustry, Iridium Communications's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's ROE % distribution charts can be found below:
* The bar in red indicates where Iridium Communications's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Iridium Communications (HAM:6IC) has a ROE % of 18.67% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Iridium Communications and its competitors. This is 1552% above median its historical median of 1.13. According to the industry distribution chart, Iridium Communications ranks #67 out of 349 companies in the Telecommunication Services industry, placing it in the top 19.2%.
Is Iridium Communications' ROE % too high?
Iridium Communications' current ROE % of 18.67% is 1552% above median its 10-year median of 1.13. The Telecommunication Services industry median ROE % is 7.41. Iridium Communications' value of 18.67% is 152% above this industry median. Based on the distribution chart, Iridium Communications ranks #67 out of 349 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' ROE % compare to LBRDA and TDS?
According to the Telecommunication Services industry distribution chart, Iridium Communications ranks #67 out of 349 companies for ROE %. This places Iridium Communications in the top 19% of its industry — outperforming the majority of peers. The industry median ROE % is 7.41. Iridium Communications' value of 18.67% is 152% above this benchmark. While the company's 10-year median is 1.13 vs. the industry median of 7.41, 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 ROE % for a Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.41, based on 349 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Iridium Communications's current ROE % of 18.67% is 152% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Iridium Communications and its competitors. For the Telecommunication Services industry, the median ROE % is 7.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iridium Communications's current ROE % is 18.67%, which is 1552% above median its own 10-year median of 1.13. 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 ROE % is 18.67%, which is 1552% above median its 10-year median of 1.13 and 152% above the Telecommunication Services industry median of 7.41. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Iridium Communications (HAM:6IC), the current ROE % is 18.67% 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:
ROE %: 18.67% (1552% above median its 10-year median of 1.13)
GF Value™: €29.55 vs. price of €35.30 (19.5% above fair value)
Industry Position: 152% above the Telecommunication Services median (#67 of 349)
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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