INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
USA - NASDAQ:IDCC - US45867G1013 - Common Stock
396.54 USD
+34.58 (+9.55%)
396.54 USD
0 (0%)
Taking everything into account, IDCC scores 7 out of 10 in our fundamental rating. IDCC was compared to 284 industry peers in the Software industry. IDCC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. IDCC is not valued too expensively and it also shows a decent growth rate. This makes IDCC very considerable for quality investing!
1. Profitability
1.1 Basic Checks
IDCC had positive earnings in the past year.
In the past year IDCC had a positive cash flow from operations.
In the past 5 years IDCC has always 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 23.22%. This is amongst the best in the industry. IDCC outperforms 96.13% of its industry peers.
IDCC's Return On Equity of 45.16% is amongst the best of the industry. IDCC outperforms 95.07% of its industry peers.
IDCC has a Return On Invested Capital of 36.86%. This is amongst the best in the industry. IDCC outperforms 98.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IDCC is significantly above the industry average of 11.83%.
The 3 year average ROIC (21.38%) for IDCC is below the current ROIC(36.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.22% | ||
| ROE | 45.16% | ||
| ROIC | 36.86% |
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 53.50%, IDCC belongs to the top of the industry, outperforming 94.72% of the companies in the same industry.
In the last couple of years the Profit Margin of IDCC has grown nicely.
The Operating Margin of IDCC (61.99%) is better than 97.89% of its industry peers.
IDCC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.99% | ||
| PM (TTM) | 53.5% | ||
| 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.
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.
The debt/assets ratio for IDCC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.47 indicates that IDCC is not in any danger for bankruptcy at the moment.
The Altman-Z score of IDCC (8.47) is better than 80.63% of its industry peers.
IDCC has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
IDCC's Debt to FCF ratio of 0.80 is fine compared to the rest of the industry. IDCC outperforms 76.76% 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 63.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 8.47 |
ROIC/WACC3.37
WACC10.94%
2.3 Liquidity
A Current Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Current ratio (1.89) which is comparable to the rest of the industry.
IDCC has a Quick Ratio of 1.89. This is a normal value and indicates that IDCC is financially healthy and should not expect problems in meeting its short term obligations.
IDCC's Quick ratio of 1.89 is in line compared to the rest of the industry. IDCC outperforms 59.51% 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 | 1.89 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
IDCC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.33%, which is quite impressive.
IDCC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 78.74% yearly.
IDCC shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.75%.
IDCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.19% yearly.
EPS 1Y (TTM)58.33%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%69.3%
Revenue 1Y (TTM)28.75%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%27.98%
3.2 Future
IDCC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.11% yearly.
IDCC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.26% yearly.
EPS Next Y-0.3%
EPS Next 2Y-25.99%
EPS Next 3Y-6.11%
EPS Next 5YN/A
Revenue Next Year-3.45%
Revenue Next 2Y-12.02%
Revenue Next 3Y-5.26%
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.
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
A Price/Earnings ratio of 26.76 indicates a quite expensive valuation of IDCC.
Based on the Price/Earnings ratio, IDCC is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
IDCC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 60.12, the valuation of IDCC can be described as expensive.
IDCC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, IDCC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.76 | ||
| Fwd PE | 60.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaper than 86.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued cheaper than 85.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.33 | ||
| EV/EBITDA | 12.49 |
4.3 Compensation for Growth
The excellent profitability rating of IDCC may justify a higher PE ratio.
IDCC's earnings are expected to decrease with -6.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-25.99%
EPS Next 3Y-6.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, IDCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 36.30, IDCC pays a better dividend. On top of this IDCC pays more dividend than 91.20% of the companies listed in the same industry.
With a Dividend Yield of 0.77, IDCC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
10.87% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
DP10.87%
EPS Next 2Y-25.99%
EPS Next 3Y-6.11%
396.54
+34.58 (+9.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.87%
Inst Owner Change-0.61%
Ins Owners1.26%
Ins Owner Change-0.84%
Market Cap10.23B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target337.11 (-14.99%)
Short Float %9.43%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.87%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)57.43%
Min EPS beat(2)23.67%
Max EPS beat(2)91.19%
EPS beat(4)3
Avg EPS beat(4)31.34%
Min EPS beat(4)-2.73%
Max EPS beat(4)91.19%
EPS beat(8)7
Avg EPS beat(8)202.96%
EPS beat(12)11
Avg EPS beat(12)192.03%
EPS beat(16)14
Avg EPS beat(16)158.4%
Revenue beat(2)2
Avg Revenue beat(2)39.3%
Min Revenue beat(2)5.28%
Max Revenue beat(2)73.32%
Revenue beat(4)4
Avg Revenue beat(4)20.16%
Min Revenue beat(4)0.55%
Max Revenue beat(4)73.32%
Revenue beat(8)7
Avg Revenue beat(8)29.25%
Revenue beat(12)10
Avg Revenue beat(12)30.94%
Revenue beat(16)14
Avg Revenue beat(16)24.02%
PT rev (1m)15.68%
PT rev (3m)68.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.88%
EPS NY rev (1m)-5.91%
EPS NY rev (3m)29.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)17.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.76 | ||
| Fwd PE | 60.12 | ||
| P/S | 11.02 | ||
| P/FCF | 17.33 | ||
| P/OCF | 15.2 | ||
| P/B | 9.3 | ||
| P/tB | 13.4 | ||
| EV/EBITDA | 12.49 |
EPS(TTM)14.82
EY3.74%
EPS(NY)6.6
Fwd EY1.66%
FCF(TTM)22.88
FCFY5.77%
OCF(TTM)26.09
OCFY6.58%
SpS35.99
BVpS42.63
TBVpS29.6
PEG (NY)N/A
PEG (5Y)0.34
Graham Number119.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.22% | ||
| ROE | 45.16% | ||
| ROCE | 42.5% | ||
| ROIC | 36.86% | ||
| ROICexc | 547.1% | ||
| ROICexgc | N/A | ||
| OM | 61.99% | ||
| PM (TTM) | 53.5% | ||
| GM | N/A | ||
| FCFM | 63.57% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score9
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 110.08% | ||
| Cap/Sales | 8.92% | ||
| Interest Coverage | 35.75 | ||
| Cash Conversion | 103.42% | ||
| Profit Quality | 118.82% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 8.47 |
F-Score9
WACC10.94%
ROIC/WACC3.37
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)58.33%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%69.3%
EPS Next Y-0.3%
EPS Next 2Y-25.99%
EPS Next 3Y-6.11%
EPS Next 5YN/A
Revenue 1Y (TTM)28.75%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%27.98%
Revenue Next Year-3.45%
Revenue Next 2Y-12.02%
Revenue Next 3Y-5.26%
Revenue Next 5YN/A
EBIT growth 1Y90.4%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year26.16%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y7.15%
FCF growth 3Y31.31%
FCF growth 5Y32.33%
OCF growth 1Y13.35%
OCF growth 3Y27.7%
OCF growth 5Y24.88%
INTERDIGITAL INC / IDCC FAQ
What is the fundamental rating for IDCC stock?
ChartMill assigns a fundamental rating of 7 / 10 to IDCC.
What is the valuation status of INTERDIGITAL INC (IDCC) stock?
ChartMill assigns a valuation rating of 4 / 10 to INTERDIGITAL INC (IDCC). This can be considered as Fairly Valued.
What is the profitability of IDCC stock?
INTERDIGITAL INC (IDCC) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for IDCC stock?
The Earnings per Share (EPS) of INTERDIGITAL INC (IDCC) is expected to decline by -0.3% in the next year.
Can you provide the dividend sustainability for IDCC stock?
The dividend rating of INTERDIGITAL INC (IDCC) is 5 / 10 and the dividend payout ratio is 10.87%.