Simple Concepts Research Group

Cheap Stock to Watch: IDT Corp. (IDT)

Sep 9, 2021

Stock rating for IDT Corporation (IDT) and stock price target for 2021. Also, a look at recent financial data and key multiples for this bargain stock.

IDT Corp. (IDT) Company Overview & Stock Price Forecast

person holding black rotary telephone

IDT Stock Rating

Stock Price Catalysts

  • Expansion of NRS partnership
    • Revenue growth: Q2 2021 NRS revenue increased 123% to $6.4 million from $2.9 million
  • Continued growth in subscription revenue from net2phone service
    • Increased 39% to $10.7 million from $7.7 million in Q2

Earnings Yield

The current earnings yield for IDT is 6.79%, in comparison to 2.84% for the S&P 500 and 1.33% for the 10-year treasury bond. The median earnings yield for the industry in which IDT operates is 13.51%.

CLICK HERE to view our Current Portfolio return for IDT.

IDT Stock Price Target: $59.13

Recent Financial Results

  • As April 2021, IDT reported $127.6 million in cash and cash equivalents (with no debt). Assets totaled $354.0 million and liabilities $327.3 million
  • EBITDA for Q2 2021 of $17.9 million
  • Revenue increased 16% to $374 million from $321 million in Q2
    • net2phone-UCaaS subscription revenue increased 39% to $10.7 million
    • National Retail Solutions (NRS) revenue increased 123% to $6.4 million
    • Traditional Communications’ revenue increased 16% to $345.9 million

Company Overview

IDT Corp operates in the global communications and payment industries, primarily in two segments: Telecom & Payment Services and net2phone.

Telecom & Payment Services Services segment offers national retail solutions, such as point of sale network, mobile services and carrier services. Under this segment the company also offers an international money remittance service and international long-distance calling service under the BOSS Revolution brand.

The net2phone segment provides unified Communications as a service (UCaaS), a cloud communications service for businesses and cable telephone services, under the net2phone brand name.

IDT has a nationwide network of more than 35,000 retailers who sell BOSS Revolution offerings, including over 26,000 who utilize their digital retailer platform. Additionally, the company also serves a retail customer base of more than 8 million people, primarily in immigrant communities within the US.

IDT was founded in 1990 and is headquartered in Newark, New Jersey.