IDT  Idt Corporation

Exchange

NYSE

Sector

Public Utilities

Industry

Telecommunications Equipment

Market Cap.

335.60M

Vuru Grade

36.18/100

Current Price

$13.51
-0.39 (-2.81%)

Growth Price

$4.85
Overvalued by 64.12%

Stability Price

$16.47
Undervalued by 21.93%

Company Metrics

  • P/E 38.6
  • P/S 0.23
  • P/B 2.37
  • EPS 0.35
  • Cash ROIC -56.83%
  • Cash Ratio 0.41
  • Dividend 0.76 / 5.5%
  • Avg. Vol. 154,322.00
  • Shares 24.84M
  • Market Cap. 335.60M

Company Description

IDT Corporation operates as a telecommunications and energy company. It operates in three segments: Telecom Platform Services, Consumer Phone Services, and Genie Energy. The Telecom Platform Services segment provides telecommunications services, including prepaid and rechargeable calling cards, a range of voice over Internet protocol communications services, and wholesale carrier services. It prod... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

IDT Corporation Reports Fourth Quarter and Full Fiscal Year 2017 Results
PR Newswire (press release) - Oct 3, 2017
NEWARK, N.J., Oct. 3, 2017 /PRNewswire/ -- IDT Corporation (NYSE: IDT) reported a $(0.41) loss per share and non-GAAP earnings per share (EPS)* of $0.07 on revenue of $395.0 million for the fourth quarter of FY 2017, the three months ended July 31, ...
IDT Corporation Class B (IDT) Moves Higher on Volume Spike for October 03 - Equities.com
IDT's (IDT) CEO Shmuel Jonas on Q4 2017 Results - Earnings Call Transcript - Seeking Alpha
IDT Corporation Reports Third Quarter Fiscal 2017 Results
PR Newswire (press release) - Jun 6, 2017
NEWARK, N.J., June 6, 2017 /PRNewswire/ -- IDT Corporation (NYSE: IDT) reported a loss per share of $0.21 and Non-GAAP earnings per share (EPS)* of $0.28 on revenue of $370.0 million for the third quarter of its fiscal year 2017, the three months ended ...
IDT's (IDT) CEO Shmuel Jonas on Q3 2017 Results - Earnings Call Transcript - Seeking Alpha
IDT Corporation to Report Fourth Quarter and Full Fiscal Year 2017 Results
PR Newswire (press release) - Sep 19, 2017
NEWARK, N.J., Sept. 19, 2017 /PRNewswire/ -- IDT Corporation (NYSE: IDT), a global provider of communications and payment services, has scheduled its report of fourth quarter and full fiscal year 2017 financial and operational results for Tuesday ...
IDT Corporation Class B (IDT) Plunges 9.15% on October 04
Equities.com - Oct 4, 2017
IDT Corporation Class B (IDT) had a rough trading day for Wednesday October 04 as shares tumbled 9.15%, or a loss of $-1.35 per share, to close at $13.40.
Vanguard Group Inc built an about 8.51% stake in IDT Corporation (IDT) - Post Analyst
Critical Contrast: IDT Corporation (IDT) vs. Oi SA (OIBR) - The Ledger Gazette
Head-To-Head Review: IDT Corporation (IDT) and Frontier Communications ...
TrueBlueTribune - 12 hours ago
IDT Corporation (NYSE: IDT) and Frontier Communications Corporation (NASDAQ:FTR) are both small-cap utilities companies, but which is the superior business?
Frontier Communications Corporation (NASDAQ:FTR) vs. IDT Corporation (IDT ... - StockNewsTimes
IDT Corporation Class B (IDT) Moves Higher on Volume Spike for October 18
Equities.com (blog) - Oct 18, 2017
IDT Corporation Class B (IDT) traded on unusually high volume on Oct. 18, as the stock gained 2.02% to close at $13.62. On the day, IDT Corporation Class B saw 338,594 shares trade hands on 2,206 trades. Considering that the stock averages only a daily ...
16 hedge funds buy IDT Corporation (IDT) for the first time - Post Analyst
Head-To-Head Analysis: IDT Corporation (IDT) & ATN International (ATNI) - The Ledger Gazette
IDT Corporation Class B (IDT) Moves Higher on Volume Spike for October 16
Equities.com (blog) - Oct 16, 2017
IDT Corporation Class B (IDT) traded on unusually high volume on Oct. 16, as the stock gained 4.4% to close at $13.52. On the day, IDT Corporation Class B saw 338,795 shares trade hands on 2,670 trades. Considering that the stock averages only a daily ...
IDT Corporation Class B (NYSE:IDT) Experiences Heavy Trading Volume - Finance Daily
Dividend Yield & Upside For IDT Corporation (NYSE:IDT)
Aiken Advocate - 8 hours ago
If investors are looking for a solid dividend stock with upside potential, IDT Corporation (NYSE:IDT) could be one that ticks all the boxes.
IDT Corporation Class B (NYSE:IDT) Short Interest Down -17.08% – Shares Trading Up - HugoPress
Shaw Communications (NYSE:SJR) vs. IDT Corporation (IDT) Head to Head Comparison - The Ledger Gazette
IDT Corporation Class B (IDT) Moves Lower on Volume Spike for October 12
Equities.com - Oct 12, 2017
IDT Corporation Class B (IDT) traded on unusually high volume on Oct. 12, as the stock lost 1.59% to close at $12.96. On the day, IDT Corporation Class B saw 207,695 shares trade hands on 1,632 trades. Considering that the stock averages only a daily ...
Frontier Communications Corporation (FTR) & IDT Corporation (IDT) Financial ... - StockNewsTimes
IDT Corporation Class B (NYSE:IDT) Experiences Light Trading Volume - HugoPress
Somewhat Positive Press Coverage Somewhat Unlikely to Impact IDT Corporation ...
StockNewsTimes - Oct 10, 2017
IDT Corporation logo Press coverage about IDT Corporation (NYSE:IDT) has trended somewhat positive this week, according to Accern.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for IDT to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate IDT's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$13.51 Current Price

$4.85 Growth Price (DCF)

Overvalued by 64.12%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


IDT's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$16.47 Stability Price (EPV)

Undervalued by 21.93%


Discount Rate: 15.0%

$13.60 Book Price

Fairly valued


Very Poor Cash Return on Invested Capital over the past 5 years

IDT has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

IDT has lost $56.83 of cash for every $100 invested.
Figures in USD. Fiscal year ends in July
20132014201520162017
Free Cash Flow 44.63M 28.45M 1.98M 30.68M -3.94M
divided by
Invested Capital -54.91M -53.75M -13.88M -36.65M 7.57M
Cash ROIC -81.28% -52.93% -14.25% -83.73% -51.97%

Varying Return on Equity over the past 5 years

IDT has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

IDT has generated $25.52 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in July
20132014201520162017
Net Income 13.44M 21.01M 86.12M 25.36M 9.64M
divided by
Stockholders' Equity 88.60M 100.24M 133.83M 123.80M 145.73M
Return on Equity 15.17% 20.96% 64.35% 20.48% 6.62%

Good Business Performance over the past 10 years

It's likely IDT has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is IDT has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

IDT has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Free Cash Flow -188.27M -115.88M 48.82M 44.45M 29.44M 44.63M 28.45M 1.98M 30.68M -3.94M

Weak Balance Sheet

IDT's financial position is not ideal. The key is to check whether IDT is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Cash 303.04M 118.61M 223.49M 254.45M 151.59M 156.64M 166.70M 150.65M 162.49M 148.62M
Current Assets 575.98M 376.62M 381.11M 434.43M 288.66M 290.30M 338.87M 341.19M 339.05M 371.12M
Total Assets 1.00B 559.62M 517.80M 568.17M 451.11M 435.41M 480.93M 485.68M 469.66M 518.96M
Current Liabilities 524.53M 314.39M 284.98M 325.14M 301.37M 333.67M 367.98M 348.91M 343.82M 362.78M
Total Liabilities 660.64M 383.33M 334.01M 359.07M 348.88M 346.80M 380.69M 351.85M 345.86M 373.23M
Stockholder' Equity 342.34M 176.29M 183.79M 209.10M 102.23M 88.60M 100.24M 133.83M 123.80M 145.73M
Current Ratio 1.10 1.20 1.34 1.34 0.96 0.87 0.92 0.98 0.99 1.02
TL-to-TA 0.66 0.68 0.65 0.63 0.77 0.80 0.79 0.72 0.74 0.72

Low or No Reinvestment of Profits over the past 10 years

IDT has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to IDT operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Retained Earnings -96.47M -251.92M -231.63M -219.99M -196.36M -203.71M -196.73M -159.83M -153.67M -163.37M
Retained Earnings Growth - -161.14% 8.05% 5.02% 10.74% -3.74% 3.43% 18.76% 3.85% -6.31%

Loss Making Entity over the past 10 years

IDT has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$0.66 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Net Income -224.33M -153.55M 20.27M 23.37M 38.79M 13.44M 21.01M 86.12M 25.36M 9.64M
divided by
Revenue 1.88B 1.54B 1.40B 1.56B 1.51B 1.62B 1.65B 1.60B 1.50B 1.50B
Net Profit Margin -11.95% -9.98% 1.45% 1.50% 2.57% 0.83% 1.27% 5.39% 1.69% 0.64%

Weak Pricing Power over the past 10 years

IDT is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that IDT has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $18.25 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Gross Profit 409.21M 365.06M 290.73M 286.10M 237.36M 265.04M 284.28M 268.41M 249.67M 226.02M
divided by
Revenue 1.88B 1.54B 1.40B 1.56B 1.51B 1.62B 1.65B 1.60B 1.50B 1.50B
Gross Margin 21.79% 23.73% 20.74% 18.39% 15.75% 16.35% 17.21% 16.81% 16.69% 15.05%

High Capital Intensity over the past 10 years

IDT spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

84.75% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Capital Expenditure 45.06M 15.25M 8.31M 17.40M 10.83M 14.63M 17.27M 28.56M 18.37M 22.95M
divided by
Net Income -224.33M -153.55M 20.27M 23.37M 38.79M 13.44M 21.01M 86.12M 25.36M 9.64M
Capital Expenditure Ratio -20.09% -9.93% 40.99% 74.43% 27.92% 108.82% 82.20% 33.16% 72.44% 238.04%

Strong Dividend History over the past 10 years

IDT has consistently distributed a dividend for the past 9 years. This suggests IDT is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Dividend Paid - 2.76M 1.94M 17.19M 16.59M 19.37M 15.52M 49.64M 17.36M 17.87M
divided by
Shares Outstanding 25.39M 22.54M 21.55M 22.48M 22.06M 22.32M 22.94M 23.25M 22.82M 23.31M
Dividend Paid Per Share - 0.12 0.09 0.76 0.75 0.87 0.68 2.14 0.76 0.77
Price at Year End 0.62 2.59 14.11 9.38 9.41 17.97 20.17 12.07 18.54 17.08
Dividend Yield - 4.73% 0.64% 8.15% 7.99% 4.83% 3.36% 17.69% 4.10% 4.49%

History of Stock Buybacks over the past 10 years

IDT has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Shares Outstanding 25.39M 22.54M 21.55M 22.48M 22.06M 22.32M 22.94M 23.25M 22.82M 23.31M
Stock Bought Back - 12.64% 4.62% -4.16% 1.91% -1.14% -2.71% -1.33% 1.89% -2.12%
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