📊 IDT Key Takeaways
Is IDT a Good Investment? Thesis Analysis
While IDT demonstrates exceptional revenue growth and maintains a fortress balance sheet with minimal debt and strong liquidity, the company exhibits severe operational red flags. Net income declined 6.2% despite astronomical 19,999% revenue growth, and free cash flow generation is critically weak at only 2.5% of revenue—a stark disconnect from reported profitability suggesting poor cash conversion quality and potential sustainability concerns.
Why Buy IDT? Key Strengths
- Fortress balance sheet with minimal debt (0.02x D/E) and $210.2M cash position (31% of assets)
- Strong liquidity metrics with 1.86x current and quick ratios indicating solid short-term financial flexibility
- Solid gross margin of 37.2% demonstrates pricing power and cost control within operations
IDT Investment Risks to Consider
- Revenue growth of 19,999% accompanied by declining net income (-6.2% YoY) indicates poor operating leverage or acquisition integration issues masking underlying deterioration
- Critical cash flow weakness: Free cash flow of only $16.2M represents 37% of net income ($43.3M) and 2.5% of revenue, raising severe earnings quality concerns and sustainability questions
- Extreme growth driver unknown—such anomalous revenue expansion likely reflects significant M&A or business combination rather than organic growth, introducing execution risk in mature telecommunications sector
Key Metrics to Watch
- Free cash flow conversion rate relative to net income (currently concerning at 37%)
- Organic revenue growth rate after accounting for acquisition impact
- Operating margin trend and whether it stabilizes or continues deteriorating
IDT Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.5% FCF margin may limit capital allocation flexibility.
IDT Profitability Ratios
IDT vs Default Sector
How IDT CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is IDT Overvalued or Undervalued?
Based on fundamental analysis, IDT CORP has mixed fundamental signals relative to the Default 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 Balance Sheet & Liquidity
IDT 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
IDT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $303.3M | $20.3M | $0.80 |
| Q1 2026 | $309.6M | $17.2M | $0.68 |
| Q3 2025 | $299.6M | $5.6M | $0.22 |
| Q2 2025 | $296.1M | $14.4M | $0.57 |
| Q1 2025 | $301.2M | $7.7M | $0.30 |
| Q3 2024 | $299.3M | $5.6M | $0.22 |
| Q2 2024 | $296.1M | $14.4M | $0.57 |
| Q1 2024 | $301.2M | $7.7M | $0.30 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IDT Capital Allocation
IDT SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are IDT's key strengths?
Claude: Fortress balance sheet with minimal debt (0.02x D/E) and $210.2M cash position (31% of assets). Strong liquidity metrics with 1.86x current and quick ratios indicating solid short-term financial flexibility.
What are the risks of investing in IDT?
Claude: Revenue growth of 19,999% accompanied by declining net income (-6.2% YoY) indicates poor operating leverage or acquisition integration issues masking underlying deterioration. Critical cash flow weakness: Free cash flow of only $16.2M represents 37% of net income ($43.3M) and 2.5% of revenue, raising severe earnings quality concerns and sustainability questions.
What is IDT's revenue and growth?
IDT CORP reported revenue of $643.3M.
Does IDT pay dividends?
IDT CORP pays dividends, with $3.0M 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 $1.72.
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 rating reflects both perspectives for balanced insights.
Is IDT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, IDT CORP has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IDT stock overvalued or undervalued?
Valuation metrics for IDT: ROE of 12.7% (sector avg: 15%), net margin of 6.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy IDT stock in 2026?
Our dual AI analysis gives IDT CORP a combined SELL rating 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 $28.2M, with capital expenditures of $12.0M. FCF margin is 2.5%.
How does IDT compare to other Default stocks?
Vs Default sector averages: Net margin 6.7% (avg: 12%), ROE 12.7% (avg: 15%), current ratio 1.86 (avg: 1.8).