Intangible Valuation
Value, contrarian, coat tail rider, idiosyncratic research

IDT: P/E Of 5.7, FCF Yield Of 22%, And No Debt

IDT Corporation (NYSE:IDT), founded 1990, is a telecommunications company, which focuses on prepaid and rechargeable calling products, international long distance traffic termination and, recently, some payment products. The corporation's revenue declined for nearly 7 years before the company was turned around:

This has allowed profitability and positive free-cash-flow to return in 2010:

Now, with a current market capitalization of $267m (share price of $11.65) we are talking about a company with a P/E of 5.7 with a free-cash-flow yield of 22%. With debt of only $29m and cash of $150m the corporation is quite unlevered. Net book stands at $95m -- but keep in mind that some of IDT's assets currently in use have been fully depreciated and...

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