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Relative to Communication Services Sector Median (N=134)
Metric
IDT
Benchmark
P/E Ratio
13.3x
-49%
EV/EBITDA
9.1x
+84%
Price / Book
3.4x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-45.1%
$27.27Spot: $49.67
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Communication Services sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
25.8%
Sector: 1.0%
Dividend Analysis audit
GROWTH
0.45%
Trailing Yield
$0.45
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
6%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, IDT CORP (IDT) receives a "Hold" rating with a composite score of 44.2/100, ranked #1839 out of 4446 stocks. Key factor scores: Quality 50/100, Value 49/100, Momentum 35/100. This is quantitative analysis only — not investment advice.
IDT CORP (IDT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does IDT CORP Do?
IDT Corporation operates in the communications and payment industries in the United States and internationally. The company operates through three segments: Fintech; net2phone-UCaaS (Unified Communications as a Service); and Traditional Communications. The Fintech segment offers international money remittance and related value/payment transfer services under the BOSS Revolution brand name; national retail solutions, such as point of sale network providing payment processing, digital advertising, transaction data, and ancillary services under the NRS brand name. The net2phone-UCaaS segment provides net2phone-UCaaS, a cloud communications service for businesses; and cable telephony services under the net2phone brand name. The Traditional Communications segment, which include Mobile Top-Up, that enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts; BOSS Revolution Calling, an international long-distance calling service; Carrier Services, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and net2phone-Platform Services, which offer telephony services to cable operators and others, as well as smaller communications and payments offerings. IDT Corporation was founded in 1990 and is headquartered in Newark, New Jersey. IDT CORP (IDT) is classified as a small-cap stock in the Communication Services sector, specifically within the Communication industry. The company is led by CEO Samuel Jonas and employs approximately 1,690 people, headquartered in NEWARK, New Jersey. With a market capitalization of $1.2B, IDT is one of the notable companies in the Communication Services sector.
IDT CORP (IDT) Stock Rating — Hold (April 2026)
As of April 2026, IDT CORP receives a Hold rating with a composite score of 44.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.IDT ranks #1,839 out of 4,446 stocks in our coverage universe. Within the Communication Services sector, IDT CORP ranks #54 of 134 stocks, placing it in the upper half of its Communication Services peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
IDT Stock Price and 52-Week Range
IDT CORP (IDT) currently trades at $49.67. The stock lost $0.34 (0.7%) in the most recent trading session. The 52-week high for IDT is $71.12, which means the stock is currently trading -30.2% from its annual peak. The 52-week low is $45.34, putting the stock 9.5% above its annual trough. Recent trading volume was 71K shares, suggesting relatively thin trading activity.
Is IDT Overvalued or Undervalued? — Valuation Analysis
IDT CORP (IDT) carries a value factor score of 49/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 13.28x, compared to the Communication Services sector average of 26.08x — a discount of 49%. The price-to-book ratio stands at 3.43x, versus the sector average of 1.87x. The price-to-sales ratio is 0.98x, compared to 0.55x for the average Communication Services stock. On an enterprise value basis, IDT trades at 9.14x EV/EBITDA, versus 4.98x for the sector.
Overall, IDT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
IDT CORP Profitability — ROE, Margins, and Quality Score
IDT CORP (IDT) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 25.8%, compared to the Communication Services sector average of 1.0%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 13.6% versus the sector average of -0.0%.
On a margin basis, IDT CORP reports gross margins of 37.1%, compared to 56.4% for the sector. The operating margin is 9.1% (sector: 0.4%). Net profit margin stands at 7.4%, versus -0.9% for the average Communication Services stock. Revenue growth is running at 7.0% on a trailing basis, compared to 3.0% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
IDT Debt, Balance Sheet, and Financial Health
IDT CORP has a debt-to-equity ratio of 87.0%, compared to the Communication Services sector average of 82.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.86x, suggesting adequate working capital coverage. Total debt on the balance sheet is $0. Cash and equivalents stand at $189M.
IDT has a beta of 0.59, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for IDT CORP is 72/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
IDT CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, IDT CORP reported revenue of $1.25B and earnings per share (EPS) of $0.84. Net income for the quarter was $92M. Gross margin was 37.1%. Operating income came in at $113M.
In Q2 2026, IDT CORP reported revenue of $321M and earnings per share (EPS) of $0.84. Net income for the quarter was $23M. Gross margin was 37.8%. Revenue grew 5.7% year-over-year compared to Q2 2025. Operating income came in at $27M.
In Q1 2025, IDT CORP reported revenue of $323M and earnings per share (EPS) of $0.89. Net income for the quarter was $24M. Gross margin was 36.6%. Operating income came in at $31M.
In FY 2025, IDT CORP reported revenue of $1.23B and earnings per share (EPS) of $3.02. Net income for the quarter was $81M. Gross margin was 36.2%. Revenue grew 2.1% year-over-year compared to FY 2024. Operating income came in at $100M.
Over the past 8 quarters, IDT CORP has demonstrated a growth trajectory, with revenue expanding from $300M to $1.25B. Investors analyzing IDT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
IDT Dividend Yield and Income Analysis
IDT CORP (IDT) currently pays a dividend yield of 0.4%. At this yield, a $10,000 investment in IDT stock would generate approximately $$45.00 in annual dividend income. The net margin of 7.4% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
IDT Momentum and Technical Analysis Profile
IDT CORP (IDT) has a momentum factor score of 35/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 28/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
IDT vs Competitors — Communication Services Sector Ranking and Peer Comparison
Comparing IDT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full IDT vs S&P 500 (SPY) comparison to assess how IDT CORP stacks up against the broader market across all factor dimensions.
IDT Next Earnings Date
No upcoming earnings date has been announced for IDT CORP (IDT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy IDT? — Investment Thesis Summary
IDT CORP presents a balanced picture with arguments on both sides. Momentum is weak at 35/100, a headwind for near-term performance. Low volatility (stability score 72/100) reduces downside risk.
In summary, IDT CORP (IDT) earns a Hold rating with a composite score of 44.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on IDT stock.
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Institutional Research Dossier
IDT CORP (IDT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on IDT Corp. The company's diverse business segments, ranging from Fintech to UCaaS and traditional communications, provide a degree of stability, but the valuation appears stretched relative to its growth prospects and sector peers. While IDT exhibits strong profitability metrics like ROE, its higher P/E ratio and EV/EBITDA compared to the Communication Services sector suggest that the market has already priced in much of its potential upside.
The primary concern revolves around the sustainability of IDT's growth in the face of increasing competition and evolving technological landscapes within each of its segments. While the company has demonstrated an ability to generate free cash flow and maintain a healthy balance sheet, the relatively low momentum score and the need for continued investment in its various platforms warrant a cautious approach. Investors should closely monitor the performance of the Fintech and UCaaS segments, as these are likely to be the key drivers of future growth.
Business Strategy & Overview
IDT Corporation operates across three distinct segments: Fintech, net2phone-UCaaS, and Traditional Communications. The Fintech segment, primarily driven by the BOSS Revolution brand, focuses on international money remittance and payment transfer services. This segment also includes National Retail Solutions (NRS), which provides point-of-sale systems and related services to retailers. The net2phone-UCaaS segment offers cloud-based communication services for businesses, competing with established players in the unified communications space. The Traditional Communications segment encompasses mobile top-up services, international long-distance calling, wholesale voice and SMS termination, and platform services for cable operators.
IDT's strategic positioning involves targeting niche markets within the broader communications and payment industries. The BOSS Revolution brand caters to the international remittance needs of immigrant communities, while NRS focuses on providing technology solutions to independent retailers. The net2phone-UCaaS segment aims to capture market share from larger UCaaS providers by offering competitive pricing and tailored solutions. The Traditional Communications segment, while facing secular decline, continues to generate revenue and cash flow.
The company's product pipeline appears to be focused on enhancing its existing platforms and expanding its service offerings within each segment. In the Fintech segment, IDT is likely investing in improving its money transfer infrastructure and expanding its network of retail partners. In the net2phone-UCaaS segment, the company is likely focused on developing new features and integrations to attract and retain business customers. In the Traditional Communications segment, IDT is likely focused on optimizing its network infrastructure and exploring new revenue streams.
The industry context for IDT is characterized by intense competition and rapid technological change. The Fintech segment faces competition from established money transfer companies, as well as emerging digital payment platforms. The net2phone-UCaaS segment competes with large UCaaS providers, such as RingCentral and Zoom, as well as traditional telecommunications companies. The Traditional Communications segment is facing secular decline due to the rise of mobile communication and internet-based calling services. IDT's ability to adapt to these challenges and differentiate itself from its competitors will be crucial to its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
7.0%
Sector: 3.0%
+135% VS SCTR
Economic Moat Analysis
IDT's economic moat is likely Narrow. While the company has established brand recognition in certain niche markets, such as the BOSS Revolution brand in the international remittance space, its competitive advantages are not particularly strong or durable. The company does not possess significant network effects, as its services are not inherently more valuable as more users join the network. Switching costs are also relatively low, as customers can easily switch to alternative providers of money transfer, UCaaS, or communication services.
The company's intangible assets, such as its brand names and technology platforms, provide some degree of competitive advantage, but these assets are not unique or difficult to replicate. The company's cost advantages are also limited, as it faces competition from larger players with greater economies of scale. While IDT has demonstrated an ability to generate free cash flow and maintain a healthy balance sheet, its profitability is not significantly higher than its competitors.
The BOSS Revolution brand benefits from a degree of trust and familiarity among its target customer base, which could be considered a minor intangible asset. However, this advantage is not insurmountable, as competitors can invest in marketing and branding to build their own brand recognition. The NRS point-of-sale network also provides some degree of competitive advantage, as it creates a barrier to entry for new players in the retail solutions market. However, this advantage is also limited, as retailers can easily switch to alternative POS systems.
Overall, IDT's economic moat is not wide enough to provide it with a significant and sustainable competitive advantage. The company faces intense competition in each of its segments, and its competitive advantages are not particularly strong or durable. As a result, IDT's long-term profitability and growth prospects are subject to significant uncertainty. The company's ability to innovate and adapt to changing market conditions will be crucial to its long-term success.
Financial Health & Profitability
IDT's financial health appears relatively sound, characterized by a strong balance sheet and consistent profitability. The company boasts total cash of $189.27 million and no debt, providing significant financial flexibility. The current ratio of 1.86 indicates a healthy level of liquidity, suggesting the company can comfortably meet its short-term obligations. This strong financial position allows IDT to invest in growth initiatives and weather potential economic downturns.
Looking at historical revenue growth, IDT has demonstrated moderate growth, with revenue increasing from $1.21 billion in FY2024 to $1.23 billion in FY2025. The most recent quarterly revenue of $320.52 million suggests a slight decline compared to the previous quarter's $322.75 million. However, the company's revenue growth of 7.0% is significantly higher than the sector average of 3.1%, indicating that IDT is outperforming its peers in terms of revenue generation.
IDT's profitability metrics are also strong, with a gross margin of 37.1%, an operating margin of 9.1%, and a net margin of 7.4%. These margins are significantly higher than the sector averages, indicating that IDT is more efficient at generating profits than its peers. The company's ROE of 25.8% is also significantly higher than the sector average of 0.9%, suggesting that IDT is effectively utilizing its equity to generate returns.
Analyzing the quarterly financial history reveals a consistent trend of profitability, with net income consistently above $22 million in recent quarters. The operating margin has also remained relatively stable, fluctuating between 8.5% and 9.6%. The free cash flow generation of $23.59 million in Q1 FY2025 further underscores the company's strong financial health. Overall, IDT's financial health is a positive factor, providing a solid foundation for future growth and investment.
Valuation Assessment
IDT's valuation presents a mixed picture. The company's P/E ratio of 56.6x is significantly higher than the sector average of 26.0x, suggesting that the stock is relatively expensive compared to its peers. Similarly, the company's EV/EBITDA of 9.1x is also higher than the sector average of 5.0x, further indicating that the stock is overvalued. These metrics suggest that the market has already priced in much of IDT's potential upside.
However, it's important to consider IDT's strong profitability metrics and revenue growth when assessing its valuation. The company's ROE of 25.8% is significantly higher than the sector average, indicating that it is more efficient at generating returns. Additionally, the company's revenue growth of 7.0% is also higher than the sector average, suggesting that it is outperforming its peers in terms of revenue generation. These factors could justify a higher valuation multiple.
The company's free cash flow generation also supports a higher valuation. While the available data only provides free cash flow for one quarter (Q1 FY2025), the $23.59 million generated suggests that IDT is capable of generating significant cash flow. A discounted cash flow analysis would be necessary to determine the intrinsic value of the stock based on its free cash flow generation.
Overall, IDT's valuation appears stretched relative to its sector peers, but its strong profitability metrics and revenue growth could justify a premium valuation. Investors should carefully consider the company's growth prospects and competitive landscape when assessing its valuation. A more detailed valuation analysis, including a discounted cash flow analysis, would be necessary to determine the fair value of the stock.
Risk & Uncertainty
IDT faces several specific risks that could impact its business and financial performance. One key risk is the intense competition in each of its segments. The Fintech segment faces competition from established money transfer companies and emerging digital payment platforms. The net2phone-UCaaS segment competes with large UCaaS providers and traditional telecommunications companies. The Traditional Communications segment is facing secular decline due to the rise of mobile communication and internet-based calling services. IDT's ability to differentiate itself from its competitors and maintain its market share is crucial to its long-term success.
Another risk is the potential for regulatory changes in the communications and payment industries. The company's operations are subject to various regulations, including those related to money transfer, telecommunications, and data privacy. Changes in these regulations could increase the company's compliance costs and negatively impact its profitability. For example, stricter regulations on money transfer could reduce the volume of transactions processed by the BOSS Revolution brand.
The company's reliance on certain key partners and suppliers also poses a risk. IDT relies on various partners and suppliers for its network infrastructure, technology platforms, and distribution channels. Disruptions in these relationships could negatively impact the company's operations and financial performance. For example, a disruption in the company's relationship with a key telecommunications carrier could disrupt its wholesale voice and SMS termination services.
Finally, the company's exposure to foreign currency fluctuations could also impact its financial performance. IDT operates in multiple countries and generates revenue in various currencies. Fluctuations in exchange rates could negatively impact the company's revenue and profitability. For example, a strengthening of the US dollar could reduce the value of the company's revenue generated in foreign currencies.
Bulls Say / Bears Say
The Bull Case
BULL VIEWIDT's diverse business segments provide a stable revenue base and mitigate risk compared to companies focused on a single industry.
BULL VIEWThe company's strong balance sheet with significant cash and no debt allows for strategic acquisitions and investments to drive future growth.
BULL VIEWIDT's higher ROE compared to the sector indicates superior capital allocation and efficiency in generating returns for shareholders.
The Bear Case
BEAR VIEWIDT's high P/E and EV/EBITDA ratios relative to the sector suggest the stock is overvalued and has limited upside potential.
BEAR VIEWThe company's low momentum score indicates a lack of investor enthusiasm and potential for further price declines.
BEAR VIEWIDT operates in highly competitive industries, making it difficult to sustain its current growth rate and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score IDT and 4,400+ other equities.
IDT CORP exhibits a 49% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
13.6%
Sector: -0.0%
Gross Margin
Pricing power and cost efficiency
37.1%
Sector: 56.4%
Operating Margin
Core business profitability
9.1%
Sector: 0.4%
Net Margin
Bottom-line profitability
7.4%
Sector: -0.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $45 annually in dividends at the current trailing rate.
