IDT Corp (IDT) stock analysis

P/E above its 5-year median

IDT's P/E of 24.0 is above its own 5-year median of 17.2.

P/E above the industry

IDT's P/E of 24.0 is above the Telephone Communications median of 13.3.

EV/EBITDA above its 5-year median

IDT's EV/EBITDA of 13.1 is above its 5-year median of 8.8.

P/B above the industry

IDT's price-to-book of 5.47 is above the Telephone Communications median of 1.76.

Trading above fair value

The share price of $83.05 is above our fair value estimate of $50.75.

Margin of safety under 20%

The price is 63.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 29.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 13.9% over the last twelve months, against a 5-year average of -2.1% a year.

Growing slower than the industry

Revenue grew 5.4% over the last twelve months; the Telephone Communications median is 5.5%.

Guidance raised

IDT raised its FY 2026 Adjusted EBITDA outlook on Jun 3, 2026.

Gross margin improving

Gross margin was 38.3% over the last twelve months, against 36.2% a year earlier.

Return on equity over 15%

Return on equity was 25.4% over the last twelve months and averaged 24.2% over five years.

Return on capital over 10%

Return on invested capital was 75.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

IDT's return on equity of 25.4% is above the Telephone Communications median of 8.4%.

Earnings shrank over 5 years

Net income shrank 2.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 6.7% over the last twelve months, against a 5-year average of 4.7%.

Net margin above the industry

IDT's net margin of 6.7% is above the Telephone Communications median of 6.5%.

No debt

IDT has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.86 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.61; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

IDT paid dividends worth 0.3% of the share price over the last twelve months.

Yield below Treasuries

The 0.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; IDT yields 0.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 5 fiscal years.

Covered by earnings

Dividends take 7.5% of net income.

Covered by free cash flow

Dividends take 9.6% of free cash flow.