IDT Corporation
IDT Corporation Fundamental Analysis
IDT Corporation (IDT) shows moderate financial fundamentals with a PE ratio of 14.86, profit margin of 6.49%, and ROE of 26.17%. The company generates $1.3B in annual revenue with weak year-over-year growth of 2.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IDT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIDT demonstrates superior asset utilization.
Valuation Score
ModerateIDT shows balanced valuation metrics.
Growth Score
ModerateIDT shows steady but slowing expansion.
Financial Health Score
ExcellentIDT maintains a strong and stable balance sheet.
Profitability Score
ModerateIDT maintains healthy but balanced margins.
Key Financial Metrics
Is IDT Expensive or Cheap?
P/E Ratio
IDT trades at 14.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IDT's PEG of 23.99 indicates potential overvaluation.
Price to Book
The market values IDT Corporation at 3.58 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.67 times EBITDA. This signals the market has high growth expectations.
How Well Does IDT Make Money?
Net Profit Margin
For every $100 in sales, IDT Corporation keeps $6.49 as profit after all expenses.
Operating Margin
Core operations generate 8.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.17 in profit for every $100 of shareholder equity.
ROA
IDT Corporation generates $12.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IDT Corporation produces operating cash flow of $134.70M, showing steady but balanced cash generation.
Free Cash Flow
IDT Corporation produces free cash flow of $112.10M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.47 in free cash annually.
FCF Yield
IDT converts 9.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
23.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How IDT Stacks Against Its Sector Peers
| Metric | IDT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.86 | 23.32 | Better (Cheaper) |
| ROE | 26.17% | 1104.00% | Weak |
| Net Margin | 6.49% | -55937.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 1.86 | 1.56 | Neutral |
| ROA | 12.07% | -45352.00% (disorted) | Strong |
IDT outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IDT Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-4.53%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
270.45%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
547.97%
Industry Style: Growth, Technology, Streaming
High Growth