5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Iridium Communications's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was -24.26%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Iridium Communications's 5-Year ROIIC % or its related term are showing as below:
IRDM's 5-Year ROIIC % is ranked worse than 90.03% of 331
companies
in the Telecommunication Services industry
Industry Median: 3.8
vs IRDM: -24.26
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Iridium Communications 5-Year ROIIC % Related Terms
Iridium Communications 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Iridium Communications's 5-Year ROIIC % 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: 5-Year ROIIC % Comparison
For the Telecom Services subindustry, Iridium Communications's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Iridium Communications's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Iridium Communications (IRDM) has a 5-Year ROIIC % of -24.26 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Iridium Communications and its competitors. According to the industry distribution chart, Iridium Communications ranks #298 out of 331 companies in the Telecommunication Services industry, placing it in the top 90%.
Is Iridium Communications' 5-Year ROIIC % too high?
Iridium Communications' current 5-Year ROIIC % is -24.26. Based on the distribution chart, Iridium Communications ranks #298 out of 331 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. 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' 5-Year ROIIC % compare to LBRDA and TDS?
According to the Telecommunication Services industry distribution chart, Iridium Communications ranks #298 out of 331 companies for 5-Year ROIIC %. This places Iridium Communications in the lower half of its industry. The industry median 5-Year ROIIC % is 3.80. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Telecommunication Services company?
The median 5-Year ROIIC % among Telecommunication Services companies is 3.80, based on 331 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Iridium Communications and its competitors. For the Telecommunication Services industry, the median 5-Year ROIIC % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iridium Communications's current 5-Year ROIIC % is -24.26. 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 $56.35 — trading 54.4% above its estimated fair value. The current 5-Year ROIIC % is -24.26. Iridium Communications' overall GF Score™ is 69/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Iridium Communications (IRDM), the current 5-Year ROIIC % is -24.26 as of Dec. 2025. 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 $56.35 is trading 54.4% above its estimated GF Value™ of $36.49.
GuruFocus considers Iridium Communications to be Significantly Overvalued.
Key valuation signals for IRDM:
5-Year ROIIC %: -24.26
GF Value™: $36.49 vs. price of $56.35 (54.4% above fair value)
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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