• In late July 2025, a forensic investigation revealed major governance failures at the Independent Development Trust (IDT), including procurement irregularities and alleged mismanagement involving top officials in an R836 million oxygen plant tender.
• Key outflows from the report include the recommendation of disciplinary action and criminal investigation, after it was found that multiple companies awarded contracts lacked the required licenses and the tender's cost more than doubled without adequate approval.
• We’ll examine how allegations of procurement failures and governance lapses may impact IDT’s investment narrative and operational outlook.

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IDT Investment Narrative Recap

To be a shareholder in IDT, you need confidence in its technology-driven growth engines, especially BOSS Money, net2phone’s AI tools, and NRS features, delivering sustainable earnings and margin improvements. The recent governance failure at the Independent Development Trust has little direct connection to IDT Corporation’s short-term operational momentum or its most pressing risks, which still center on capital allocation and integration of acquisitions.

Among recent announcements, IDT’s continued commitment to share repurchases and dividend increases remains the most relevant, reflecting a focus on rewarding shareholders and strong cash flow. While this supports a key catalyst for earnings per share growth, it amplifies the underlying risk that increasing outflows toward buybacks and dividends could constrain future growth reinvestment.

Yet despite IDT’s financial progress, investors should be conscious that, unlike operational missteps, overextending on buybacks could...

Read the full narrative on IDT (it's free!)

IDT's narrative projects $1.3 billion in revenue and $104.9 million in earnings by 2028. This requires a 0.7% annual revenue decline and an $8.9 million earnings increase from the current $96.0 million.

Uncover how IDT's forecasts yield a $85.60 fair value, a 47% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate IDT’s fair value from US$85.60 up to US$129.50 across three independent analyses. While many see opportunity in the company’s recent margin gains, views differ on how capital allocation decisions may shift future shareholder returns, your assessment may align with one or more of these distinct perspectives.

Explore 3 other fair value estimates on IDT - why the stock might be worth over 2x more than the current price!

Build Your Own IDT Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your IDT research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free IDT research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IDT's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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