Pulling Back the Curtain on Iridium Communications Inc. (NasdaqGS:IRDM) Shares

Iridium Communications Inc. (NasdaqGS:IRDM) has an ERP5 rank of 10931. The ERP5 Rank is an investment gadget that analysts use to uncloak undervalued companies.  It looks at the stock’s Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The lower the rank, the more undervalued a firm is considered to be.

Active investing may be highly stressful at times. Investors often set up trades with the best intentions, but have the tendency to let too much emotion seep into the situation. When dealing with the emotions of market stress, investors may have to determine how to keep emotions in check in order to make the right decision. This may come easy to some but much harder for others. Because there is no one right way to trade, investors may have to experience certain scenarios for themselves. Creating a plan from the outset may assist the investor when tough decisions have to be made. Keeping cool under pressure is a trait shared by many successful investors. When the investor is focused on a plan or specific trading system, this can make things a bit simpler when times get tough.

Q.i. Value

The Q.i. Value of Iridium Communications Inc. (NasdaqGS:IRDM) is 57.00000. The Q.i. Value is another useful gadget in determining if a firm is undervalued or not. The Q.i. Value is determined using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the firm is thought to be.

The EBITDA Yield is a great way to determine a firm’s profitability. This number is determined by dividing a firm’s earnings before interest, taxes, depreciation and amortization by the firm’s enterprise value. Enterprise Value is determined by taking the market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The EBITDA Yield for Iridium Communications Inc. (NasdaqGS:IRDM) is 0.056770.

The Earnings to Price yield of Iridium Communications Inc. (NasdaqGS:IRDM) is 0.054612.  This is determined by taking the EPS and dividing it by the last closing equity price.  This is one of the most leading formulas investors use to price out a firm’s financial performance.  Earnings Yield is determined by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the firm.  The Earnings Yield for Iridium Communications Inc. NasdaqGS:IRDM is 0.015007.  Earnings Yield helps investors sum the return on investment for a given firm.  Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value.  The Earnings Yield Five Year average for Iridium Communications Inc. is 0.032977.

FCF Yield 5yr Avg

The FCF Yield 5yr Average is determined by taking the five year average free cash flow of a firm, and dividing it by the current enterprise value. Enterprise Value is determined by taking the market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a firm is determined by gazing at the cash generated by operations of the firm. The Free Cash Flow Yield 5 Year Average of Iridium Communications Inc. (NasdaqGS:IRDM) is -0.048516.

Price to book, Price to cash flow, Price to earnings

The Price to book ratio is the current equity price of a firm divided by the book value per share. The Price to Book ratio for Iridium Communications Inc. NasdaqGS:IRDM is 1.419764. A lower price to book ratio points out that the stock might be undervalued. Similarly, Price to cash flow ratio is another useful ratio in determining a firm’s value. The Price to Cash Flow for Iridium Communications Inc. (NasdaqGS:IRDM) is 8.055984. This ratio is determined by dividing the market value of a firm by cash from operating activities. Additionally, the price to earnings ratio is another leading way for analysts and investors to determine a firm’s profitability. The price to earnings ratio for Iridium Communications Inc. (NasdaqGS:IRDM) is 18.310831. This ratio is found by taking the current equity price and dividing by EPS.

Value Comp 1 / Value Comp 2

The Value Composite One (VC1) is a method that investors use to determine a firm’s value. The VC1 of Iridium Communications Inc. (NasdaqGS:IRDM) is 41. A firm with a value of 0 is thought to be an undervalued firm, while a firm with a value of 100 is considered an overvalued firm. The VC1 is determined using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is determined with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Iridium Communications Inc. (NasdaqGS:IRDM) is 52.

Volatility 12 m, 6m, 3m

Stock volatility is a percentage that points out whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a firm has a low volatility percentage or not over the course of a year. The Volatility 12m of Iridium Communications Inc. (NasdaqGS:IRDM) is 47.341600. This is determined by taking weekly log normal returns and standard deviation of the equity price over one year annualized. The lower the number, a firm is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the equity price over 3 months. The Volatility 3m of Iridium Communications Inc. (NasdaqGS:IRDM) is 52.890700. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 52.288300.

MF Rank

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable firm trading at a good price. The formula is determined by gazing at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Iridium Communications Inc. (NasdaqGS:IRDM) is 11000. A firm with a low rank is considered a good firm to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Piotroski F-Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a firm’s stock is valuable or not. The Piotroski F-Score of Iridium Communications Inc. (NasdaqGS:IRDM) is 5. A score of nine points out a high value stock, while a score of one points out a low value stock. The score is determined by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also determined by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

Return on Assets

There are many different tools to determine whether a firm is profitable or not. One of the most leading ratios is the “Return on Assets” (aka ROA). This score points out how profitable a firm is relative to its total assets. The Return on Assets for Iridium Communications Inc. (NasdaqGS:IRDM) is 0.032776. This number is determined by dividing net income after tax by the firm’s total assets. A firm that manages their assets well will have a higher return, while a firm that manages their assets poorly will have a lower return.

Trading the equity market can sometimes feel like a wild roller coaster ride. When stocks are soaring, investors may feel like they can’t lose. When markets are sinking, investors may feel like there is nothing that they can do. Individual investors may have experienced both ends of the spectrum. Sometimes, an investor may secure some winning trades right out of the gate. This may cause the individual to become overconfident in their ability. Markets have the ability to shoot down overconfidence very quickly. On the other side, investors may only experience losses right off the bat and become highly discouraged. Figuring out how to manage winners and losers can big a big assist to the investor’s psyche in the long-term. Frequently assessing which trades worked and examining why they worked may greatly assist the investor. The same can be said for trades that did not pan out. 

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