📊 IDT Key Takeaways
Is Idt Corp. (IDT) a Good Investment?
IDT Corp exhibits severe red flags despite a fortress-like balance sheet. The 19999.5% revenue growth is accompanied by declining net income, operating cash flow significantly below net income, and a paltry 3.1% FCF margin—indicating profound earnings quality concerns. Structural headwinds in mature telecom sector combined with deteriorating profitability trends outweigh strong liquidity and negligible debt.
IDT exhibits solid profitability with 37% gross margin, 9% operating margin, and a healthy 12.7% ROE, supported by a fortress balance sheet with substantial net cash and negligible long‑term debt. While net income dipped modestly YoY, operating earnings remain strong and liquidity is ample, positioning the company to weather volatility and fund growth. Normalizing for likely data anomalies in reported revenue growth, upside hinges on improving cash conversion and sustaining margins.
Idt Corp. Key Strengths (IDT)
- Minimal leverage with 0.02x debt-to-equity and only $6.4M long-term debt
- Substantial cash position of $215M (31% of total assets) provides operational flexibility
- Healthy liquidity ratios (1.92x current and quick ratio) support short-term obligations
- Net cash balance sheet with minimal leverage
- Consistent profitability (9% operating, 6.7% net margins)
- Double‑digit ROE (12.7%) indicating efficient equity use
IDT Stock Risks: Idt Corp. Investment Risks
- Operating cash flow ($46.7M) below reported net income ($64.9M) signals severe earnings quality deterioration and potential accounting manipulation
- Free cash flow margin of only 3.1% on $959M revenue despite purported 20000%+ YoY growth indicates significant cash leakage and unsustainable growth claims
- Net income declined 6.2% YoY while revenue allegedly grew 20000%—gross margin compression and cost structure problems suggest business model stress
- Mature telecom sector (SIC 4813) facing secular decline; company operates in structurally challenged market segment
- Revenue growth anomaly lacks contextual explanation—likely driven by M&A or accounting reclassification rather than organic strength
- Weak cash conversion and low FCF margin (2.5%)
- Potential data/period comparability issues in reported revenue growth
- Competitive pressure in telecom could compress margins
Key Metrics to Watch
- Operating cash flow trend and reconciliation to net income (investigate quality of earnings)
- Free cash flow conversion and sustainability given revenue growth sustainability questions
- Gross margin trajectory and cost structure evolution in competitive telecom market
- Free cash flow margin and OCF/Net Income conversion
- Operating margin sustainability
Idt Corp. (IDT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.1% FCF margin may limit capital allocation flexibility.
IDT Profit Margin, ROE & Profitability Analysis
IDT vs Telecom Sector: How Idt Corp. Compares
How Idt Corp. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Idt Corp. Stock Overvalued? IDT Valuation Analysis 2026
Based on fundamental analysis, Idt Corp. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Idt Corp. Balance Sheet: IDT Debt, Cash & Liquidity
IDT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Idt Corp.'s revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $1.58 reflects profitable operations.
IDT Revenue Growth, EPS Growth & YoY Performance
IDT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $302.0M | $21.6M | $0.86 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Idt Corp. Dividends, Buybacks & Capital Allocation
IDT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Idt Corp. (CIK: 0001005731)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IDT
What is the AI rating for IDT?
Idt Corp. (IDT) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IDT's key strengths?
Claude: Minimal leverage with 0.02x debt-to-equity and only $6.4M long-term debt. Substantial cash position of $215M (31% of total assets) provides operational flexibility. ChatGPT: Net cash balance sheet with minimal leverage. Consistent profitability (9% operating, 6.7% net margins).
What are the risks of investing in IDT?
Claude: Operating cash flow ($46.7M) below reported net income ($64.9M) signals severe earnings quality deterioration and potential accounting manipulation. Free cash flow margin of only 3.1% on $959M revenue despite purported 20000%+ YoY growth indicates significant cash leakage and unsustainable growth claims. ChatGPT: Weak cash conversion and low FCF margin (2.5%). Potential data/period comparability issues in reported revenue growth.
What is IDT's revenue and growth?
Idt Corp. reported revenue of $959.0M.
Does IDT pay dividends?
Idt Corp. pays dividends, with $4.8M distributed to shareholders in the trailing twelve months.
Where can I find IDT SEC filings?
Official SEC filings for Idt Corp. (CIK: 0001005731) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IDT's EPS?
Idt Corp. has a diluted EPS of $2.59.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is IDT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Idt Corp. has a B grade with 69% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is IDT stock overvalued or undervalued?
Valuation metrics for IDT: ROE of 18.1% (sector avg: 15%), net margin of 6.8% (sector avg: 14%). Higher ROE suggests strong returns relative to peers.
What is IDT's AI grade for 2026?
Our dual AI analysis gives Idt Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IDT's free cash flow?
Idt Corp.'s operating cash flow is $46.7M, with capital expenditures of $17.1M. FCF margin is 3.1%.
How does IDT compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 6.8% (avg: 14%), ROE 18.1% (avg: 15%), current ratio 1.92 (avg: 1).