Quality Investor

IDT Corporation

Rank #45Value

IDT · NYSE · Communication Services

IDT Corporation (IDT) — Rank #45 by gross profitability (GP/assets 0.64) · ROE 21.3% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001005731 · all metrics point-in-time as of the filing date.

About

IDT Corporation, together with its subsidiaries, provides communications and payment services in the United States, the United Kingdom, and internationally.

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It operates in four segments: National Retail Solutions, Fintech, Net2phone, and Traditional Communications. The company operates point of sale, a terminal-based platform which provides independent retailers with store management software, electronic payment processing, and other ancillary merchant services; and marketers with digital out-of-home advertising and transaction data. It also offers BOSS Money for international money remittance, and related value and payment transfer services, as well as net2phone solutions comprising unified communications as a service; contact center as a service under the uContact brand; net2phone AI, which delivers customer experiences across sales, support, and administrative tasks; and net2phone Coach, a workforce intelligence and coaching platform. In addition, the company provides IDT Digital Payments, which enables businesses, entrepreneurs, and developers to offer prepaid digital offerings, including mobile airtime top-up, mobile data bundles, digital gift cards, and eSIMs through its Zendit platform; and BOSS Revolution, which offers international long-distance voice calling to immigrant communities. Further, it provides IDT Global, a wholesale provider of international voice, SMS termination, and outsourced traffic management solutions to telecoms; and IDT Express, a mobile self-service portal paired with dedicated account managers backed by customer support.

IDT Corporation was incorporated in 1978 and is headquartered in Newark, New Jersey.

Industry
Telecom Services
Sector
Communication Services
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
July 31
Website
idt.net

Price History

IDT+60.7% · +10.0% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$1.77B

P/E (annual)

23.7

P/S (annual)

1.4

P/B

5.0

P/OCF (annual)

14.0

Shareholder Yield

0.7%

Employees

1,915

Industry

Telecom Services

Exchange

NYSE

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 3-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.64
Return on equity
21.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.82
Current ratio
1.92×
Net cash
$220.84M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.2%

Growth

2/2 pass
Revenue growth
2.1%
Piotroski F-Score
N/A
Share dilution
-0.4%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

5.5%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -0.4% — per-share value needs a total required return of 5.1% once share-count change is priced in.

vs. own 6-year median revenue growth: -3.6%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

1.3%

r = 10% (base)

5.5%

r = 12%

9.1%

Net debt / market cap: -12.2%

Note: current FCF margin is 1.9σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $106.3M3Y mean FCF: $65.9M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

21.3xFair
13.5xmed 19.9x799.0x

P / S

Price / revenue per share

1.3xExpensive
0.1xmed 0.4x1.3x

P / B

Price / book value per share

5.3xExpensive
1.8xmed 3.9x8.2x

P / GP

Price / gross profit per share

3.6xExpensive
0.7xmed 1.4x3.6x

P / FCF

Price / free cash flow per share

15.3xFair
3.0xmed 20.0x87.3x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.64

Primary signal (Novy-Marx).

Return on equity

21.3%

Gross margin

36.2%

Revenue growth (YoY)

2.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-3.4%

Revenue CAGR (5Y)

-1.8%

Earnings CAGR (3Y)

41.2%

FCF CAGR (3Y)

141.7%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.82

Current ratio

1.92×

Quick ratio

0.83×

Net cash

$220.84M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 16 years of history

Moderate
2008-2009 (GFC)
N/AN/A
2020 (COVID)
-4.5%Mild decline
Worst year on record(any fiscal year, not recession-limited)
-9.2%Mild decline

Cash-flow health

Free cash flow

$106.29M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.40

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.2%

Stock-based comp intensity.

Dividend safety

Composite score

3.0 / 5

Good
Payout ratio
7.3%5/5 Strong
FCF coverage
19.15×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 0.82 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Value
Capital Return