IDT Corporation (IDT) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: IDT Corporation

Updated on October 5, 2026 · accounts published on September 28, 2026

A debt-free business with record margins and returns well above its sector

IDT trades at a P/E of 23.7 over the last 12 months, 24 % above its sector median, after a record 9.4 % operating margin in fiscal 2026.

• Is IDT expensive or cheap? IDT trades at a P/E of 23.7 over the last 12 months, 24 % above the 19.1 median of its sector.
• How is the business doing? The fiscal 2026 operating margin of 9.4 % is the highest in 12 years, against a 3.9 % average since 2015.
• How strong is the balance sheet? IDT has virtually no debt and holds net cash of $16.39 per share, about 20 % of the current price (fiscal 2026).
• What to expect from the next earnings? Analysts expect EPS of $0.98 for the quarter IDT reports on December 3, 2026.
• Does the dividend fit within the cash the business generates? The dividend absorbed only 9.6 % of fiscal 2026 free cash flow, far below the 80 % ceiling considered healthy for telecoms.

Is IDT expensive or cheap?

Over the last 12 months IDT trades at a P/E of 23.7. That is a 24 % premium to the 19.1 median of 67 communication companies. EV/EBITDA points the same way: at 10.6× it is above its five-year average of 8.6× and past the 110 % of that average that the sector framework treats as expensive. Two figures soften this. The free cash flow yield is 7.1 % over the last 12 months, and net cash equals 20 % of the share price. After a 9 % gain in a year, the stock is within 1 % of its 52-week high of $84.46, so the market has already priced in much of the improvement.

How is the business doing?

IDT's operating margin of 9.4 % in fiscal 2026 is the best of the 12 fiscal years since 2015, which averaged 3.9 %. Profit is growing faster than sales. Over the last 12 months revenue rose 5.4 % and EPS rose 15.0 %, so wider margins are doing more of the work than volume. Returns back this up. ROIC of 21.6 % over the last 12 months is 15.7 points above the 5.9 % sector median. It has stayed above 10 % in 8 of the last 10 fiscal years, and the weakest year was 2019 at 2.5 %. ROE stands at 24.8 %.

How strong is the balance sheet?

The balance sheet is close to debt-free. Debt to equity is 0.00 over the last 12 months. At the end of fiscal 2026, cash of $16.43 per share against $0.03 of debt left net cash of $16.39 per share, equal to 20 % of the share price. Net debt to EBITDA is −2.5×, a long way from the 3.5× ceiling tolerated for telecoms. A current ratio of 1.86 covers short-term obligations comfortably. Shareholder payouts are small: the dividend yields 0.3 % over the last 12 months and took 8 % of fiscal 2026 earnings, so most of the cash stays in the company.

What to expect from the next earnings?

IDT last reported on September 28, 2026, with EPS of $0.94 against $0.98 expected, a 4.1 % miss. Its track record is mixed rather than weak: it has beaten EPS estimates in 3 of the last 5 quarters. For the report due December 3, 2026, consensus again stands at $0.98 per share. The stock is near its 52-week high and trades at a P/E of 23.7, above the sector, so a second miss in a row would test that premium. The figure to watch is whether the operating margin holds near the fiscal 2026 record of 9.4 %.

Does the dividend fit within the cash the business generates?

Telecoms tend to be capital-hungry cash machines, so the sector judges them on free cash flow, capex and dividend cover before growth. IDT passes the capital tests easily. Capex was 1.8 % of fiscal 2026 revenue against a 20 % ceiling, and the dividend took 9.6 % of free cash flow. Revenue per share grew 2.3 % a year over fiscal 2023-2026, just above the 2 % bar. It fails where telecoms usually shine. The fiscal 2026 EBITDA margin of 11.1 % is far below the 30 % benchmark, and that year's free cash flow yields 3.3 % on today's price, under the healthy level of 6 %.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.