Is Iridium Communications Inc. (IRDM) Halal?

NASDAQ Communication Services United States $2.9B
✗ NOT HALAL
Confidence: 90/100
Iridium Communications Inc. (IRDM) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 69.9% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Iridium Communications Inc. operates in the Communication Services sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 69.9%
/ 30%
3.8%
/ 30%
3.7%
/ 30%
0.33%
/ 5%
✗ NOT HALAL
DJIM 69.9%
/ 33%
3.8%
/ 33%
3.7%
/ 33%
0.33%
/ 5%
✗ NOT HALAL
MSCI 69.6%
/ 33%
3.8%
/ 33%
3.7%
/ 33%
0.33%
/ 5%
✗ NOT HALAL
S&P 69.9%
/ 33%
3.8%
/ 33%
3.7%
/ 33%
0.33%
/ 5%
✗ NOT HALAL
FTSE 69.6%
/ 33%
3.8%
/ 33%
3.7%
/ 50%
0.33%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
26.4
Forward: 21.3
EPS
$1.06
Dividend Yield
215.0%
Payout: 54.7%
P/B Ratio
6.3
EV/EBITDA
10.4
EV: $4.6B
Revenue
$872M
Growth: 0.0%
Beta
0.6
Low volatility
Current Ratio
2.5

Profitability

Gross Margin 71.5%
Operating Margin 25.9%
Net Margin 13.1%
Return on Equity (ROE) 22.0%
Return on Assets (ROA) 5.7%

Cash Flow & Balance Sheet

Operating Cash Flow$400M
Free Cash Flow$300M
Total Debt$1.8B
Debt-to-Equity387.1
Current Ratio2.5
Total Assets$2.5B

Price & Trading

Last Close$28.31
50-Day MA$22.99
200-Day MA$22.05
Avg Volume2.2M
Beta0.6
52-Week Range
$15.65
$33.34

About Iridium Communications Inc. (IRDM)

CEO
Mr. Matthew J. Desch
Employees
975
Sector
Communication Services
Industry
Telecom Services
Country
United States
Exchange
NASDAQ
Market Cap
$2.9B
Currency
USD

Iridium Communications Inc. provides mobile voice and data communications services and products to businesses, the United States and foreign governments, non-governmental organizations, and consumers in the United States, Canada, and internationally. The company offers mobile satellite communications services for land mobile end users and aviation sectors; broadband terminals, embedded devices, and handsets for merchant shipping, fishing, leisure and research vessels, and specialized watercraft; satellite-based IoT services; hosted payload and other data services; and other data services and engineering services. It also provides postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; Internet of Things (IoT); and satellite time and location services. In addition, the company offers personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; maritime communications applications; specialized communications solutions for high-value individuals; and mobile communications and data devices for the military and other government agencies, such as secure satellite handsets; and maintenance services for the U.S. government's dedicated gateway. Further, it provides satellite handsets, voice and data modems, broadband data devices, and IoT data devices; and various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, and charging units. The company sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and value-added manufacturers. The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009. Iridium Communications Inc. is headquartered in McLean, Virginia.

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Frequently Asked Questions

Is Iridium Communications Inc. (IRDM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Iridium Communications Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Iridium Communications Inc.'s debt ratio?

Iridium Communications Inc.'s debt ratio is 69.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 69.6%.

What are Iridium Communications Inc.'s key financial metrics?

Iridium Communications Inc. has a market capitalization of $2.9B, trailing P/E ratio of 26.4, and revenue of $872M. The company maintains a gross margin of 71.5% and a net margin of 13.1%. Return on equity stands at 22.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.