INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
NASDAQ:IDCC - US45867G1013 - Common Stock
295.58 USD
+7.78 (+2.7%)
IDCC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. Both the health and profitability get an excellent rating, making IDCC a very profitable company, without any liquidiy or solvency issues. IDCC has a correct valuation and a medium growth rate. This makes IDCC very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year IDCC was profitable.
IDCC had a positive operating cash flow in the past year.
Each year in the past 5 years IDCC has been profitable.
Each year in the past 5 years IDCC had a positive operating cash flow.
1.2 Ratios
IDCC has a Return On Assets of 23.35%. This is amongst the best in the industry. IDCC outperforms 96.07% of its industry peers.
With an excellent Return On Equity value of 42.65%, IDCC belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
The Return On Invested Capital of IDCC (36.65%) is better than 98.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 12.03%.
The last Return On Invested Capital (36.65%) for IDCC is above the 3 year average (21.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 42.65% | ||
| ROIC | 36.65% |
ROA(3y)12.19%
ROA(5y)8.55%
ROE(3y)30.52%
ROE(5y)20.96%
ROIC(3y)21.38%
ROIC(5y)14.92%
1.3 Margins
Looking at the Profit Margin, with a value of 51.92%, IDCC belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
In the last couple of years the Profit Margin of IDCC has grown nicely.
IDCC has a better Operating Margin (60.40%) than 97.86% of its industry peers.
IDCC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.4% | ||
| PM (TTM) | 51.92% | ||
| GM | N/A |
OM growth 3Y29.51%
OM growth 5Y33.68%
PM growth 3Y47%
PM growth 5Y44.5%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
IDCC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, IDCC has more shares outstanding
The number of shares outstanding for IDCC has been reduced compared to 5 years ago.
Compared to 1 year ago, IDCC has an improved debt to assets ratio.
2.2 Solvency
IDCC has an Altman-Z score of 8.16. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.16, IDCC belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
The Debt to FCF ratio of IDCC is 1.72, which is an excellent value as it means it would take IDCC, only 1.72 years of fcf income to pay off all of its debts.
IDCC has a Debt to FCF ratio of 1.72. This is in the better half of the industry: IDCC outperforms 68.57% of its industry peers.
IDCC has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
IDCC's Debt to Equity ratio of 0.02 is fine compared to the rest of the industry. IDCC outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 8.16 |
ROIC/WACC3.32
WACC11.05%
2.3 Liquidity
IDCC has a Current Ratio of 1.96. This is a normal value and indicates that IDCC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of IDCC (1.96) is better than 61.07% of its industry peers.
IDCC has a Quick Ratio of 1.96. This is a normal value and indicates that IDCC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of IDCC (1.96) is better than 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.15% over the past year.
IDCC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 78.74% yearly.
The Revenue has grown by 21.83% in the past year. This is a very strong growth!
The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)41.15%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%36.13%
Revenue 1Y (TTM)21.83%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%34.5%
3.2 Future
IDCC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.78% yearly.
The Revenue is expected to decrease by -2.64% on average over the next years.
EPS Next Y-0.75%
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
EPS Next 5YN/A
Revenue Next Year-4.2%
Revenue Next 2Y-12.37%
Revenue Next 3Y-2.64%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IDCC is valuated rather expensively with a Price/Earnings ratio of 21.07.
Based on the Price/Earnings ratio, IDCC is valued a bit cheaper than 76.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. IDCC is valued slightly cheaper when compared to this.
IDCC is valuated quite expensively with a Price/Forward Earnings ratio of 41.43.
IDCC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, IDCC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 41.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaper than 90.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IDCC indicates a somewhat cheap valuation: IDCC is cheaper than 75.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.81 | ||
| EV/EBITDA | 10.69 |
4.3 Compensation for Growth
The excellent profitability rating of IDCC may justify a higher PE ratio.
A cheap valuation may be justified as IDCC's earnings are expected to decrease with -8.78% in the coming years.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, IDCC is not a good candidate for dividend investing.
IDCC's Dividend Yield is rather good when compared to the industry average which is at 59.95. IDCC pays more dividend than 92.86% of the companies in the same industry.
With a Dividend Yield of 0.83, IDCC pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of IDCC has a limited annual growth rate of 3.26%.
IDCC has paid a dividend for at least 10 years, which is a reliable track record.
IDCC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.26%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
10.48% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
DP10.48%
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
NASDAQ:IDCC (9/8/2025, 12:18:23 PM)
295.58
+7.78 (+2.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners102.64%
Inst Owner Change-3.53%
Ins Owners1.29%
Ins Owner Change3.62%
Market Cap7.63B
Analysts80
Price Target263.87 (-10.73%)
Short Float %7.41%
Short Ratio6.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.48%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.21%
Min EPS beat(2)13.22%
Max EPS beat(2)91.19%
EPS beat(4)3
Avg EPS beat(4)116.84%
Min EPS beat(4)-2.73%
Max EPS beat(4)365.69%
EPS beat(8)7
Avg EPS beat(8)219.54%
EPS beat(12)11
Avg EPS beat(12)195.46%
EPS beat(16)14
Avg EPS beat(16)158.5%
Revenue beat(2)2
Avg Revenue beat(2)36.94%
Min Revenue beat(2)0.55%
Max Revenue beat(2)73.32%
Revenue beat(4)4
Avg Revenue beat(4)26.71%
Min Revenue beat(4)0.55%
Max Revenue beat(4)73.32%
Revenue beat(8)7
Avg Revenue beat(8)33.38%
Revenue beat(12)10
Avg Revenue beat(12)30.78%
Revenue beat(16)14
Avg Revenue beat(16)24.75%
PT rev (1m)2.52%
PT rev (3m)31.77%
EPS NQ rev (1m)3%
EPS NQ rev (3m)-22.59%
EPS NY rev (1m)28.79%
EPS NY rev (3m)33.81%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-17.2%
Revenue NY rev (1m)17.02%
Revenue NY rev (3m)16.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 41.43 | ||
| P/S | 8.54 | ||
| P/FCF | 27.81 | ||
| P/OCF | 21.49 | ||
| P/B | 7.02 | ||
| P/tB | 10.22 | ||
| EV/EBITDA | 10.69 |
EPS(TTM)14.03
EY4.75%
EPS(NY)7.13
Fwd EY2.41%
FCF(TTM)10.63
FCFY3.6%
OCF(TTM)13.75
OCFY4.65%
SpS34.6
BVpS42.12
TBVpS28.93
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 42.65% | ||
| ROCE | 42.26% | ||
| ROIC | 36.65% | ||
| ROICexc | 137.99% | ||
| ROICexgc | N/A | ||
| OM | 60.4% | ||
| PM (TTM) | 51.92% | ||
| GM | N/A | ||
| FCFM | 30.72% |
ROA(3y)12.19%
ROA(5y)8.55%
ROE(3y)30.52%
ROE(5y)20.96%
ROIC(3y)21.38%
ROIC(5y)14.92%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)24.65%
ROCE(5y)17.2%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y29.51%
OM growth 5Y33.68%
PM growth 3Y47%
PM growth 5Y44.5%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 110.44% | ||
| Cap/Sales | 9.03% | ||
| Interest Coverage | 33.49 | ||
| Cash Conversion | 57.96% | ||
| Profit Quality | 59.16% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 8.16 |
F-Score8
WACC11.05%
ROIC/WACC3.32
Cap/Depr(3y)67.3%
Cap/Depr(5y)60.65%
Cap/Sales(3y)8.24%
Cap/Sales(5y)9.11%
Profit Quality(3y)132.23%
Profit Quality(5y)166.71%
High Growth Momentum
Growth
EPS 1Y (TTM)41.15%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%36.13%
EPS Next Y-0.75%
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
EPS Next 5YN/A
Revenue 1Y (TTM)21.83%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%34.5%
Revenue Next Year-4.2%
Revenue Next 2Y-12.37%
Revenue Next 3Y-2.64%
Revenue Next 5YN/A
EBIT growth 1Y70.25%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year18.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y23.4%
FCF growth 3Y31.31%
FCF growth 5Y32.33%
OCF growth 1Y34.19%
OCF growth 3Y27.7%
OCF growth 5Y24.88%