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IDT
(NYSE:IDT)
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Rating:80Outperform
Price Target:
$87.00
▲(25.90% Upside)
Action:Reiterated
Date:09/30/26
IDT scores well primarily due to strong financial health (improving profitability and an exceptionally low-leverage balance sheet) and a very positive earnings outlook with double-digit growth guidance. Technicals also support the score with a clear uptrend and moderate momentum. Valuation is the main constraint given a mid-range P/E and minimal dividend yield.
Positive Factors
Higher-margin growth mix
The growing contribution from NRS, Fintech and net2phone indicates that IDT is shifting toward businesses with stronger economics and recurring or transaction-based growth. This mix improvement can support margin resilience, reinvestment capacity and more durable earnings quality over the coming quarters.
Negative Factors
Retail remittance migration
The decline in retailer-agent revenue reflects a structural channel shift rather than a temporary trading effect. Although digital growth may offset part of the pressure, cash-originated transfers face an added tax burden and channel migration could continue weighing on legacy remittance economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Higher-margin growth mix
The growing contribution from NRS, Fintech and net2phone indicates that IDT is shifting toward businesses with stronger economics and recurring or transaction-based growth. This mix improvement can support margin resilience, reinvestment capacity and more durable earnings quality over the coming quarters.
Read all positive factors
IDT Key Performance Indicators (KPIs)
Any
Revenue by Geography
Allocates revenue across geographical markets, helping investors identify key markets, potential regional headwinds, and diversification or concentration that could affect future revenue stability.
Allocates revenue across geographical markets, helping investors identify key markets, potential regional headwinds, and diversification or concentration that could affect future revenue stability.
Data provided by:
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IDT (IDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.88B
Dividend Yield0.34%
Average Volume (3M)227.36K
Price to Earnings (P/E)21.3
Beta (1Y)0.75
Revenue Growth5.40%
EPS Growth14.64%
CountryUS
Employees1,920
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3.46
Shares Outstanding23,294,240
10 Day Avg. Volume371,422
30 Day Avg. Volume227,356
Financial Highlights & Ratios
PEG Ratio1.27
Price to Book (P/B)4.36
Price to Sales (P/S)1.27
P/FCF Ratio24.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$85.00Price Target Upside23.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.95
Revenue Forecast (FY)$1.25B
IDT Business Overview & Revenue Model
Company Description
IDT Corporation, established in 1990 and headquartered in Newark, New Jersey, is a global enterprise actively involved in the communications and payment sectors. The company's diverse operations are organized into three main divisions: Fintech, ne...
How the Company Makes Money
IDT makes money through a mix of transaction-driven fees, subscription/SaaS recurring revenue, and product/service distribution economics across its operating segments:
1) National Retail Solutions (NRS)
- SaaS and equipment/installation revenue:...
IDT Earnings Call Summary
Earnings Call Date:Sep 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 07, 2026
Earnings Call Sentiment Positive
The call was strongly positive, with record fiscal-year and quarterly results, accelerating revenue and adjusted EBITDA growth, improving contributions from higher-margin businesses, strong digital and AI momentum, a debt-free balance sheet and double-digit fiscal 2027 guidance. The main challenges were declines in retail-originated remittance revenue, Traditional Communications gross profit and BOSS Revolution PIN-less revenue, along with the qualification that some quarterly results benefited from one-time or comparative-period items.Positive Updates
Record Fiscal Year and Fourth Quarter
Management described fiscal 2026 as the best year in IDT's operational history and said the fourth quarter was the company's strongest quarter. IDT generated record quarterly and full-year gross profit, gross profit margin and adjusted EBITDA.
Negative Updates
BOSS Money Retailer Agent Revenue Decline
Revenue from the BOSS Money retailer agent channel declined 17% in the fourth quarter as customers migrated from retail-originated transfers to digital alternatives. Management said the new federal tax on remittances impacts cash-originated transfers typically conducted at retailer agents and has further accelerated this migration.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Fiscal Year and Fourth Quarter
Management described fiscal 2026 as the best year in IDT's operational history and said the fourth quarter was the company's strongest quarter. IDT generated record quarterly and full-year gross profit, gross profit margin and adjusted EBITDA.
Read all positive updates
Company Guidance
For fiscal '27, IDT expects consolidated gross profit to expand by double digits to a range of $545 million to $555 million, an increase of 11% at the midpoint, and adjusted EBITDA to reach $176 million to $180 million, a 15% increase year-over-year at the midpoint, with each operating segment expanding its contribution; NRS is assuming almost the same type of guidance, with revenue growth of 20%, 25% and EBITDA growth at a higher clip than that, Fintech EBITDA will continue to grow quite nicely, net2phone is budgeted for a very small increase in EBITDA as it redeploys growth into its AI development road map, and Traditional Communications is expected to add to total EBITDA for the third year in a row, despite a double-digit decline in the revenue of the BOSS Revolution PIN-less business, which digital payments growth is expected to offset.IDT Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
71
Positive
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.30B | 1.23B | 1.21B | 1.24B | 1.36B |
| Gross Profit | 496.79M | 446.19M | 390.16M | 363.12M | 329.63M |
| EBITDA | 143.76M | 127.16M | 82.26M | 82.10M | 71.48M |
| Net Income | 86.63M | 76.09M | 64.45M | 40.49M | 27.03M |
Balance Sheet | |||||
| Total Assets | 764.26M | 626.20M | 550.10M | 510.81M | 497.09M |
| Cash, Cash Equivalents and Short-Term Investments | 410.59M | 253.79M | 193.00M | 152.25M | 137.75M |
| Total Debt | 817.00K | 1.10M | 1.53M | 2.88M | 4.61M |
| Total Liabilities | 356.31M | 295.79M | 283.54M | 300.34M | 316.27M |
| Stockholders Equity | 377.32M | 305.13M | 246.18M | 193.73M | 167.62M |
Cash Flow | |||||
| Free Cash Flow | 67.96M | 106.29M | 59.27M | 32.18M | 7.53M |
| Operating Cash Flow | 91.07M | 127.06M | 78.19M | 54.14M | 29.41M |
| Investing Cash Flow | -47.67M | -20.74M | -748.00K | -33.46M | -33.78M |
| Financing Cash Flow | -30.57M | -23.42M | -17.23M | -15.81M | -15.62M |
IDT Technical Analysis
Positive
69.10
Price Trends
67.64
Positive
61.84
Positive
55.93
Positive
Market Momentum
0.90
Negative
74.02
Negative
57.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDT, the sentiment is Positive. The current price of 69.1 is below the 20-day moving average (MA) of 69.38, above the 50-day MA of 67.64, and above the 200-day MA of 55.93, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 74.02 is Negative, neither overbought nor oversold. The STOCH value of 57.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IDT.
IDT Risk Analysis
IDT disclosed 54 risk factors in its most recent earnings report. IDT reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IDT Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.88B | 21.32 | 24.83% | 0.34% | 5.40% | 14.64% | |
73 Outperform | $587.60M | 53.77 | 11.59% | ― | 17.19% | ― | |
59 Neutral | $430.06M | 2.74 | 34.33% | 3.99% | 2.02% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $3.68B | 8.14 | 8.65% | 30.47% | -73.81% | ― | |
47 Neutral | $5.71B | -5.48 | -52.11% | 9.72% | -7.74% | 13.54% | |
47 Neutral | $375.92M | -4.24 | 140.52% | 1.09% | -4.54% | 79.01% |
* General Sector Average
IDT
IDT
79.97
29.52
58.51%
ATNI
ATN International
27.82
13.37
92.46%
LUMN
Lumen Technologies
5.60
-0.47
-7.74%
CCOI
Cogent Comms
7.79
-31.10
-79.97%
OOMA
Ooma
20.43
8.62
72.99%
TDS
Telephone & Data Systems
33.92
-5.32
-13.56%
IDT Corporate Events
Dividends
IDT Declares Quarterly Cash Dividend for Shareholders
Positive
Sep 24, 2026
On September 22, 2026, IDT Corporation announced that its Board of Directors had declared a quarterly cash dividend of $0.07 per share, reinforcing its practice of returning capital to shareholders through regular distributions.The dividend will b...
Business Operations and StrategyPrivate Placements and Financing
IDT amends and extends revolving credit facility agreement
Positive
Aug 18, 2026
On August 13, 2026, IDT Telecom, Inc. amended its revolving credit agreement with TD Bank, N.A., modifying a facility that had been scheduled to mature on August 16, 2026. The amendment provides seasonal flexibility by allowing up to $50.0 million...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.