IDT Corporation

IDT earns a 31.5% return on capital on a $1 billion market cap business, yet the stock still trades at 15.4 times trailing earnings.

If you own IDT, you own a steady cash machine that the market still treats like a random telecom stock.

idt

communication services · telecom small cap updated mar 6, 2026
$49.13
market cap ~$1B · 52-week range $45–$52
xvary composite: 56 / 100 · below average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
IDT sells calling, money transfer, and retail software services to everyday customers and small stores.
how it gets paid
Last year IDT made $1.2B in revenue. Traditional Communications was the main engine at $0.82B, or 68% of sales.
why it's growing
Revenue grew 2.1% last year. The business is still growing. Annual revenue rose 2.1% to $1.2 billion.
what just happened
Latest quarter revenue hit $643 million, but the last reported earnings per share of $0.84 came in below the $0.90 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
15.4x trailing p/e — the market's not buying it — or you found a deal
0.5% dividend yield — cash in your pocket every quarter
31.5% return on capital — every dollar works hard here
xvary composite: 56/100 — below average
What they do
IDT sells calling, money transfer, and retail software services to everyday customers and small stores.
IDT wins by sitting inside repeat, low-glamour habits. If your store runs on NRS or your family sends cash through BOSS Money, switching is annoying, retraining is real, and daily workflow breaks. That helps the business earn a 31.5% return on capital, which is elite for a company with just a 7.5% operating margin.
telecom small-cap recurring-revenue payments telecom
How they make money
$1.2B annual revenue · their business grew +2.1% last year
Traditional Communications
$0.82B
2.4%
National Retail Solutions
$0.18B
+19.0%
BOSS Money
$0.12B
+10.0%
Fintech and Other
$0.08B
+6.0%
The products that matter
international telecom and remittance
BOSS Revolution
within the $217M traditional communications segment
it sits inside the largest segment, which still grew 2% last quarter. slow growth, but it pays the bills.
68% of mix
cloud communications platform
Net2Phone
$71M segment · +8%
this $71M segment grew 8% last quarter. it matters because it grows faster than the legacy business, even if it is not yet the headline driver.
22% of mix
retail analytics and POS software
NRS
$32M segment · +19%
this $32M segment grew 19% last quarter and runs at a 92% gross margin. it is only 10% of revenue, but it is the part that can change how the market values the company.
92% gross margin
Key numbers
31.5%
return on capital
Return on capital → profit earned on each dollar invested → so what: IDT turns invested money into profit far better than most telecom-adjacent businesses.
15.4x
trailing p/e
P/E → price compared with past earnings → so what: you are not paying a hype multiple for a business with 32% return on equity.
$3.65
FY2027 EPS
EPS estimate → projected profit per share → so what: earnings are still expected to rise after FY2026's $3.45 estimate, even with the market acting unconvinced.
$68
18-month target
Target price → a published fair-value view → so what: that is about 38% above the current $49.13 share price.
Financial health
B+
strength
  • balance sheet grade B+ — solid but not elite
  • risk rank 3 — safer than 50% of stocks
  • price stability 30 / 100
  • net profit margin 6.5% — keeps 6 cents of every dollar in revenue
  • return on equity 32% — $0.32 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market

You invested $10,000 in IDT 3 years ago → it's now worth $15,590.

The index would have given you $13,880.

same period. same starting point. IDT beat the market by $1,710.

source: institutional data · total return
What just happened
missed estimates
Latest quarter revenue hit $643 million, but the last reported earnings per share of $0.84 came in below the $0.90 estimate.
The business is still growing. Annual revenue rose 2.1% to $1.2 billion, and the latest reported quarter showed 37.2% gross margin, helped by stronger mix and newer businesses.
$643M
revenue
$0.84
eps
37.2%
gross margin
the number that mattered
37.2% gross margin matters most because it shows IDT is shifting toward better businesses, even while legacy communications still dominates revenue.
source: company earnings report, 2026

Get this snapshot in your inbox

This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.

weekly updates earnings alerts plain english no spam
What could go wrong

the #1 risk is the legacy communications business staying too large for too long.

!
high
Traditional Communications still dominates the mix
68% of disclosed segment mix comes from Traditional Communications, and that piece grew only 2% last quarter.
If the largest segment stays slow, the whole company keeps trading like a telecom utility with extra parts attached.
∘
med
NRS is excellent, but still small
NRS grew 19% and carries a 92% gross margin, yet it is only 10% of revenue in this snapshot.
If that growth cools before the segment becomes bigger, the premium part of the story never gets large enough to move the valuation.
∘
med
Low predictability means the path will be messy
Earnings predictability is 35/100 and price stability is 30/100. This is not a sleep-well-at-night compounder.
Even if the thesis works, you may have to sit through lumpy quarters and a stock that does not get the benefit of the doubt.
68% of the mix is tied to the slow-growth legacy segment, while the fastest-growing piece is still only 10%. The investment case works only if that ratio starts changing.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the key metric
NRS staying above the rest of the pack
NRS grew 19% last quarter versus 2% for Traditional Communications and 8% for Net2Phone & Fintech. You want that spread to stay wide.
risk
whether the mix actually changes
A 92% gross margin business is great. A 92% gross margin business at 10% of revenue is still a sidecar. Watch the revenue share, not just the growth rate.
calendar
the next earnings check-in
Management already raised adjusted EBITDA guidance to $147M. The next report needs to defend that number, not just repeat it.
trend
institutional selling versus business momentum
There were 57 buyers and 72 sellers in 4q2025. If the business improves while the holder base stays skeptical, that gap can close fast.
Analyst rankings
short-term outlook
average
Momentum score 3. In human-speak, analysts do not see a strong short-term edge either way.
risk profile
average
Stability score 3 means typical balance-sheet risk, but the 30 / 100 price stability score says the stock itself can still swing.
chart momentum
average
Technical score 3 says the chart is not sending a dramatic signal. This is a fundamentals story first.
earnings predictability
35 / 100
Low predictability means quarterly results can surprise in both directions. You should expect noise.
source: institutional data
Institutional activity

57 buyers vs. 72 sellers in 4q2025. total institutional holdings: 13.1M shares.

source: institutional data · 2q2025-4q2025
source: institutional data
Price targets
3-5 year target range
$38 $98
$49 current price
$68 target midpoint · +38% from current · 3-5yr high: $75 (+55% · 12% ann'l return)
source: institutional data · analyst targets

Want the deeper analysis?

The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.

see plans from $5/mo
The deep dive
IDT
xvary deep dive
idt
the full analysis is in the works.
what you'll get
dcf valuation model
bull / base / bear scenarios
competitive moat breakdown
quarterly earnings tracker
operating model projections
risk matrix with kill criteria
original price target + conviction
updated with every earnings
free · no spam · you'll be first to read it