IDT  Idt Corporation

Exchange

NYSE

Sector

Public Utilities

Industry

Telecommunications Equipment

Market Cap.

446.27M

Vuru Grade

32.08/100

Current Price

$19.35
-0.07 (-0.36%)

Growth Price

$13.93
Overvalued by 28.01%

Stability Price

$21.21
Undervalued by 9.61%

Company Metrics

  • P/E 10.67
  • P/S 0.30
  • P/B 3.21
  • EPS 1.81
  • Cash ROIC -366.29%
  • Cash Ratio 0.47
  • Dividend 0.76 / 3.84 %
  • Avg. Vol. 134,933.00
  • Shares 23.06M
  • Market Cap. 446.27M

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 Introduces the BOSS Revolution Money App
PR Newswire (press release) - 21 hours ago
NEWARK, N.J., Feb. 23, 2017 /PRNewswire/ -- IDT Corporation (NYSE: IDT), a global provider of communications and payment services, today announced the introduction of BOSS Revolution Money.
IDT Corporation Announces Investment in Cornerstone Pharmaceuticals
PR Newswire (press release) - Nov 10, 2016
10, 2016 /PRNewswire/ -- IDT Corporation (NYSE: IDT) today announced a strategic investment in Cornerstone Pharmaceuticals, Inc., a privately-held biotechnology company.
IDT Corporation: Upcoming Spinoff To Unlock Hidden Sum Of The Parts Value
Seeking Alpha - Nov 25, 2015
IDT is an undervalued company on an absolute basis that plans on reorganizing its business into three separate entities. Not only is the company planning on spinning off into three separate businesses, but it also is anticipating to return a decent ...
IDT Corporation Price Volatility Hits An Amplified Level
CML News - Feb 21, 2017
This is a proprietary realized volatility rating created by Capital Market Laboratories (CMLviz) based on a large number of data interactions for IDT Corporation (NYSE:IDT) . We examine the little used gem of daily stock volatility over a 20-day and 30 ...
IDT Corp. Management Is Shareholder-Friendly
Seeking Alpha - Jun 24, 2016
IDT Corporation, a small-cap high-performer, operates in the telecommunications and payment industries both in the United States and internationally, focusing on the immigrant and first-generation populations.
IDT Corporation's (IDT) CEO Shmuel Jonas on Q3 2016 Results - Earnings Call ...
Seeking Alpha - Jun 2, 2016
Hello and welcome to the IDT Corporation's Third Quarter Fiscal Year 2016 Earnings Conference Call. During management's prepared remarks all participants will be in listen-only mode.
IDT Corporation's (IDT) CEO Shmuel Jonas on Q2 2016 Results - Earnings Call ...
Seeking Alpha - Mar 4, 2016
In today's presentation, Shmuel Jonas, CEO of IDT Corporation will discuss IDT's financial and operational results for the three months ended January 31, 2016.
IDT Corp. Cl B
MarketWatch - Oct 8, 2010
Cornerstone Pharmaceuticals, Inc. Announces Additions to its Board of Directors: Jean-Pierre Sommadossi, Ph.D., Richard Axel, M.D.
IDT Corporation: Watch For A 50% Drop On Spin-Off Catalyst
Seeking Alpha - Jul 2, 2013
Another company which appears headed for a very rapid 50% decline is IDT Corp. (NYSE:IDT). The stock has many of the same problems as Erickson, yet has doubled this year based on the market's complete failure of analysis.
Upcoming Spin-Off Should Unleash IDT Corp.'s Value
Seeking Alpha - Mar 10, 2011
IDT Corporation (NYSE:IDT) is a company that has caused investors lots of pain and joy depending on when they purchased their shares.
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.

$19.35 Current Price

$13.93 Growth Price (DCF)

Overvalued by 28.01%


Growth Rate Assumed by Market: 12.21%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$21.21 Stability Price (EPV)

Undervalued by 9.61%


Discount Rate: 15.0%

$10.73 Book Price

Overvalued by 44.54%


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 $366.29 of cash for every $100 invested.
Figures in USD. Fiscal year ends in July
20122013201420152016
Free Cash Flow 29.44M 44.63M 28.45M 1.98M 30.68M
divided by
Invested Capital -1.84M -54.91M -53.75M -13.88M -36.65M
Cash ROIC -1,599.24% -81.28% -52.93% -14.25% -83.73%

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 $31.78 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in July
20122013201420152016
Net Income 38.79M 13.44M 21.01M 86.12M 25.36M
divided by
Stockholders' Equity 102.23M 88.60M 100.24M 133.83M 123.80M
Return on Equity 37.94% 15.17% 20.96% 64.35% 20.48%

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
2007200820092010201120122013201420152016
Free Cash Flow -158.66M -188.27M -115.88M 48.82M 44.45M 29.44M 44.63M 28.45M 1.98M 30.68M

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
2007200820092010201120122013201420152016
Cash 541.99M 303.04M 118.61M 223.49M 254.45M 151.59M 156.64M 166.70M 150.65M 162.49M
Current Assets 803.14M 575.98M 376.62M 381.11M 434.43M 288.66M 290.30M 338.87M 341.19M 339.05M
Total Assets 1.37B 1.00B 559.62M 517.80M 568.17M 451.11M 435.41M 480.93M 485.68M 469.66M
Current Liabilities 501.96M 524.53M 314.39M 284.98M 325.14M 301.37M 333.67M 367.98M 348.91M 343.82M
Total Liabilities 737.15M 660.64M 383.33M 334.01M 359.07M 348.88M 346.80M 380.69M 351.85M 345.86M
Stockholder' Equity 630.16M 342.34M 176.29M 183.79M 209.10M 102.23M 88.60M 100.24M 133.83M 123.80M
Current Ratio 1.60 1.10 1.20 1.34 1.34 0.96 0.87 0.92 0.98 0.99
TL-to-TA 0.54 0.66 0.68 0.65 0.63 0.77 0.80 0.79 0.72 0.74

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
2007200820092010201120122013201420152016
Retained Earnings 147.68M -96.47M -251.92M -231.63M -219.99M -196.36M -203.71M -196.73M -159.83M -153.67M
Retained Earnings Growth - -165.32% -161.14% 8.05% 5.02% 10.74% -3.74% 3.43% 18.76% 3.85%

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.

$0.43 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Net Income 58.62M -224.33M -153.55M 20.27M 23.37M 38.79M 13.44M 21.01M 86.12M 25.36M
divided by
Revenue 2.01B 1.88B 1.54B 1.40B 1.56B 1.51B 1.62B 1.65B 1.60B 1.50B
Net Profit Margin 2.91% -11.95% -9.98% 1.45% 1.50% 2.57% 0.83% 1.27% 5.39% 1.69%

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 $18.72 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
2007200820092010201120122013201420152016
Gross Profit 397.69M 409.21M 365.06M 290.73M 286.10M 237.36M 265.04M 284.28M 268.41M 249.67M
divided by
Revenue 2.01B 1.88B 1.54B 1.40B 1.56B 1.51B 1.62B 1.65B 1.60B 1.50B
Gross Margin 19.76% 21.79% 23.73% 20.74% 18.39% 15.75% 16.35% 17.21% 16.81% 16.69%

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.

62.73% 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
2007200820092010201120122013201420152016
Capital Expenditure 36.29M 45.06M 15.25M 8.31M 17.40M 10.83M 14.63M 17.27M 28.56M 18.37M
divided by
Net Income 58.62M -224.33M -153.55M 20.27M 23.37M 38.79M 13.44M 21.01M 86.12M 25.36M
Capital Expenditure Ratio 61.90% -20.09% -9.93% 40.99% 74.43% 27.92% 108.82% 82.20% 33.16% 72.44%

Strong Dividend History over the past 10 years

IDT has consistently distributed a dividend for the past 8 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
2007200820092010201120122013201420152016
Dividend Paid 30.78M - 2.76M 1.94M 17.19M 16.59M 19.37M 15.52M 49.64M 17.36M
divided by
Shares Outstanding 27.39M 25.39M 22.54M 21.55M 22.48M 22.06M 22.32M 22.94M 23.25M 22.82M
Dividend Paid Per Share 1.12 - 0.12 0.09 0.76 0.75 0.87 0.68 2.14 0.76
Price at Year End 13.31 0.62 2.59 14.11 9.38 9.41 17.97 20.17 12.07 18.54
Dividend Yield 8.44% - 4.73% 0.64% 8.15% 7.99% 4.83% 3.36% 17.69% 4.10%

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
2007200820092010201120122013201420152016
Shares Outstanding 27.39M 25.39M 22.54M 21.55M 22.48M 22.06M 22.32M 22.94M 23.25M 22.82M
Stock Bought Back - 7.87% 12.64% 4.62% -4.16% 1.91% -1.14% -2.71% -1.33% 1.89%
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