INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
NASDAQ:IDCC - Nasdaq - US45867G1013 - Common Stock - Currency: USD
Taking everything into account, IDCC scores 7 out of 10 in our fundamental rating. IDCC was compared to 282 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. These ratings could make IDCC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
IDCC had positive earnings in the past year.
IDCC had a positive operating cash flow in the past year.
IDCC had positive earnings in each of the past 5 years.
In the past 5 years IDCC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 21.08%, IDCC belongs to the best of the industry, outperforming 95.04% of the companies in the same industry.
IDCC has a better Return On Equity (41.90%) than 94.33% of its industry peers.
IDCC has a Return On Invested Capital of 35.04%. This is amongst the best in the industry. IDCC outperforms 97.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 12.26%.
The 3 year average ROIC (21.38%) for IDCC is below the current ROIC(35.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.08% | ||
| ROE | 41.9% | ||
| ROIC | 35.04% |
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
IDCC has a better Profit Margin (48.14%) than 98.23% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 57.34%, IDCC belongs to the best of the industry, outperforming 99.65% of the companies in the same industry.
In the last couple of years the Operating Margin of IDCC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 57.34% | ||
| PM (TTM) | 48.14% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IDCC is creating value.
IDCC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for IDCC has been reduced compared to 5 years ago.
The debt/assets ratio for IDCC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.80 indicates that IDCC is not in any danger for bankruptcy at the moment.
The Altman-Z score of IDCC (6.80) is better than 75.18% of its industry peers.
The Debt to FCF ratio of IDCC is 3.91, which is a good value as it means it would take IDCC, 3.91 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.91, IDCC is in the better half of the industry, outperforming 61.35% of the companies in the same industry.
A Debt/Equity ratio of 0.02 indicates that IDCC is not too dependend on debt financing.
IDCC has a Debt to Equity ratio of 0.02. This is in the better half of the industry: IDCC outperforms 62.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 6.8 |
ROIC/WACC4.16
WACC8.42%
2.3 Liquidity
IDCC has a Current Ratio of 1.76. 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 (1.76) is comparable to the rest of the industry.
A Quick Ratio of 1.76 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Quick ratio of 1.76. This is comparable to the rest of the industry: IDCC outperforms 55.67% of its industry peers.
The current and quick ratio evaluation for IDCC is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 85.44% 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 33.52% in the past year. This is a very strong growth!
IDCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.19% yearly.
EPS 1Y (TTM)85.44%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%19.79%
Revenue 1Y (TTM)33.52%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%-20.12%
3.2 Future
Based on estimates for the next years, IDCC will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.44% on average per year.
IDCC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.02% yearly.
EPS Next Y-25.83%
EPS Next 2Y-29.02%
EPS Next 3Y-13.44%
EPS Next 5YN/A
Revenue Next Year-17.92%
Revenue Next 2Y-15.18%
Revenue Next 3Y-5.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.80, which indicates a rather expensive current valuation of IDCC.
Based on the Price/Earnings ratio, IDCC is valued cheaper than 84.04% of the companies in the same industry.
IDCC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
IDCC is valuated quite expensively with a Price/Forward Earnings ratio of 37.01.
IDCC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. IDCC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 37.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaply inside the industry as 92.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IDCC is valued a bit cheaper than 63.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.32 | ||
| EV/EBITDA | 9.41 |
4.3 Compensation for Growth
IDCC has an outstanding profitability rating, which may justify a higher PE ratio.
IDCC's earnings are expected to decrease with -13.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-29.02%
EPS Next 3Y-13.44%
5. Dividend
5.1 Amount
IDCC has a Yearly Dividend Yield of 1.06%.
Compared to an average industry Dividend Yield of 16.21, IDCC pays a better dividend. On top of this IDCC pays more dividend than 93.26% of the companies listed in the same industry.
With a Dividend Yield of 1.06, IDCC pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
The dividend of IDCC has a limited annual growth rate of 3.26%.
IDCC has been paying a dividend for at least 10 years, so it has 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
10.99% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
DP10.99%
EPS Next 2Y-29.02%
EPS Next 3Y-13.44%
224.52
+2.92 (+1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.49%
Inst Owner Change4.52%
Ins Owners1.28%
Ins Owner Change2.21%
Market Cap5.82B
Analysts78.33
Price Target200.26 (-10.81%)
Short Float %7.36%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.99%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.24%
Min EPS beat(2)-2.73%
Max EPS beat(2)13.22%
EPS beat(4)3
Avg EPS beat(4)362.71%
Min EPS beat(4)-2.73%
Max EPS beat(4)1074.68%
EPS beat(8)7
Avg EPS beat(8)209.88%
EPS beat(12)11
Avg EPS beat(12)194.88%
EPS beat(16)14
Avg EPS beat(16)174.47%
Revenue beat(2)2
Avg Revenue beat(2)1.01%
Min Revenue beat(2)0.55%
Max Revenue beat(2)1.48%
Revenue beat(4)4
Avg Revenue beat(4)38.33%
Min Revenue beat(4)0.55%
Max Revenue beat(4)119.82%
Revenue beat(8)6
Avg Revenue beat(8)23.88%
Revenue beat(12)10
Avg Revenue beat(12)24.69%
Revenue beat(16)14
Avg Revenue beat(16)20.29%
PT rev (1m)-10.93%
PT rev (3m)0.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)100.33%
EPS NY rev (1m)0%
EPS NY rev (3m)3.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)23.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 37.01 | ||
| P/S | 7.14 | ||
| P/FCF | 48.32 | ||
| P/OCF | 29.01 | ||
| P/B | 6.22 | ||
| P/tB | 9.74 | ||
| EV/EBITDA | 9.41 |
EPS(TTM)12.61
EY5.62%
EPS(NY)6.07
Fwd EY2.7%
FCF(TTM)4.65
FCFY2.07%
OCF(TTM)7.74
OCFY3.45%
SpS31.44
BVpS36.12
TBVpS23.04
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.08% | ||
| ROE | 41.9% | ||
| ROCE | 40.4% | ||
| ROIC | 35.04% | ||
| ROICexc | 147.97% | ||
| ROICexgc | N/A | ||
| OM | 57.34% | ||
| PM (TTM) | 48.14% | ||
| GM | N/A | ||
| FCFM | 14.78% |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 113.18% | ||
| Cap/Sales | 9.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.28% | ||
| Profit Quality | 30.71% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 6.8 |
F-Score8
WACC8.42%
ROIC/WACC4.16
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)85.44%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%19.79%
EPS Next Y-25.83%
EPS Next 2Y-29.02%
EPS Next 3Y-13.44%
EPS Next 5YN/A
Revenue 1Y (TTM)33.52%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%-20.12%
Revenue Next Year-17.92%
Revenue Next 2Y-15.18%
Revenue Next 3Y-5.02%
Revenue Next 5YN/A
EBIT growth 1Y126.81%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year5.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-48.71%
FCF growth 3Y31.31%
FCF growth 5Y32.33%
OCF growth 1Y-27.28%
OCF growth 3Y27.7%
OCF growth 5Y24.88%