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INTERDIGITAL INC (IDCC) Stock Fundamental Analysis

NASDAQ:IDCC - Nasdaq - US45867G1013 - Common Stock - Currency: USD

268.74  -1.01 (-0.37%)

After market: 268.74 0 (0%)

Fundamental Rating

6

Overall IDCC gets a fundamental rating of 6 out of 10. We evaluated IDCC against 283 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. With these ratings, IDCC could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

8

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.
In the past 5 years IDCC always reported a positive cash flow from operatings.
IDCC Yearly Net Income VS EBIT VS OCF VS FCFIDCC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

1.2 Ratios

The Return On Assets of IDCC (23.35%) is better than 96.47% of its industry peers.
IDCC's Return On Equity of 42.65% is amongst the best of the industry. IDCC outperforms 94.70% of its industry peers.
The Return On Invested Capital of IDCC (36.65%) is better than 98.23% of its industry peers.
IDCC had an Average Return On Invested Capital over the past 3 years of 21.38%. This is significantly above the industry average of 12.14%.
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 RankSector 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%
IDCC Yearly ROA, ROE, ROICIDCC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

IDCC has a Profit Margin of 51.92%. This is amongst the best in the industry. IDCC outperforms 96.11% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
IDCC has a better Operating Margin (60.40%) than 97.88% of its industry peers.
In the last couple of years the Operating Margin of IDCC has grown nicely.
Industry RankSector 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
IDCC Yearly Profit, Operating, Gross MarginsIDCC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

7

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.
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.
Compared to 1 year ago, IDCC has an improved debt to assets ratio.
IDCC Yearly Shares OutstandingIDCC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
IDCC Yearly Total Debt VS Total AssetsIDCC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

IDCC has an Altman-Z score of 7.85. 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 7.85, IDCC belongs to the top of the industry, outperforming 80.92% of the companies in the same industry.
IDCC has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.72, IDCC is doing good in the industry, outperforming 67.84% of the companies in the same industry.
IDCC has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
IDCC has a better Debt to Equity ratio (0.02) than 61.84% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 1.72
Altman-Z 7.85
ROIC/WACC3.23
WACC11.35%
IDCC Yearly LT Debt VS Equity VS FCFIDCC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 1.96 indicates that IDCC should not have too much problems paying its short term obligations.
The Current ratio of IDCC (1.96) is better than 60.78% of its industry peers.
A Quick Ratio of 1.96 indicates that IDCC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.96, IDCC is doing good in the industry, outperforming 60.78% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.96
Quick Ratio 1.96
IDCC Yearly Current Assets VS Current LiabilitesIDCC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

5

3. Growth

3.1 Past

IDCC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.15%, 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.
Looking at the last year, IDCC shows a very strong growth in Revenue. The Revenue has grown by 21.83%.
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

The Earnings Per Share is expected to decrease by -13.44% on average over the next years. This is quite bad
Based on estimates for the next years, IDCC will show a decrease in Revenue. The Revenue will decrease by -5.02% on average per year.
EPS Next Y-22.94%
EPS Next 2Y-26.01%
EPS Next 3Y-13.44%
EPS Next 5YN/A
Revenue Next Year-18.13%
Revenue Next 2Y-15.23%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
IDCC Yearly Revenue VS EstimatesIDCC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
IDCC Yearly EPS VS EstimatesIDCC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.15, which indicates a rather expensive current valuation of IDCC.
Based on the Price/Earnings ratio, IDCC is valued a bit cheaper than the industry average as 78.80% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.87. IDCC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 40.77 indicates a quite expensive valuation of IDCC.
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 35.34, IDCC is valued at the same level.
Industry RankSector Rank
PE 19.15
Fwd PE 40.77
IDCC Price Earnings VS Forward Price EarningsIDCC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IDCC indicates a rather cheap valuation: IDCC is cheaper than 90.46% of the companies listed 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 75.27% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 25.42
EV/EBITDA 9.95
IDCC Per share dataIDCC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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 -13.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-26.01%
EPS Next 3Y-13.44%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.89%, IDCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 37.43, IDCC pays a better dividend. On top of this IDCC pays more dividend than 92.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, IDCC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.89%

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
IDCC Yearly Dividends per shareIDCC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

IDCC pays out 10.48% of its income as dividend. This is a sustainable payout ratio.
DP10.48%
EPS Next 2Y-26.01%
EPS Next 3Y-13.44%
IDCC Yearly Income VS Free CF VS DividendIDCC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
IDCC Dividend Payout.IDCC Dividend Payout, showing the Payout Ratio.IDCC Dividend Payout.PayoutRetained Earnings

INTERDIGITAL INC

NASDAQ:IDCC (8/15/2025, 8:00:02 PM)

After market: 268.74 0 (0%)

268.74

-1.01 (-0.37%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)07-31 2025-07-31/bmo
Earnings (Next)10-29 2025-10-29/bmo
Inst Owners102.64%
Inst Owner Change-0.89%
Ins Owners1.29%
Ins Owner Change2.2%
Market Cap6.97B
Analysts78.33
Price Target257.38 (-4.23%)
Short Float %7.58%
Short Ratio8.23
Dividend
Industry RankSector Rank
Dividend Yield 0.89%
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.48%
Div Incr Years2
Div Non Decr Years11
Ex-Date07-09 2025-07-09 (0.6)
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)28.52%
PT rev (3m)14.47%
EPS NQ rev (1m)-5.1%
EPS NQ rev (3m)-22.59%
EPS NY rev (1m)0%
EPS NY rev (3m)3.89%
Revenue NQ rev (1m)-2.71%
Revenue NQ rev (3m)-17.2%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE 19.15
Fwd PE 40.77
P/S 7.81
P/FCF 25.42
P/OCF 19.65
P/B 6.41
P/tB 9.34
EV/EBITDA 9.95
EPS(TTM)14.03
EY5.22%
EPS(NY)6.59
Fwd EY2.45%
FCF(TTM)10.57
FCFY3.93%
OCF(TTM)13.68
OCFY5.09%
SpS34.41
BVpS41.9
TBVpS28.77
PEG (NY)N/A
PEG (5Y)0.24
Profitability
Industry RankSector 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 RankSector 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 7.85
F-Score8
WACC11.35%
ROIC/WACC3.23
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-22.94%
EPS Next 2Y-26.01%
EPS Next 3Y-13.44%
EPS Next 5YN/A
Revenue 1Y (TTM)21.83%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%34.5%
Revenue Next Year-18.13%
Revenue Next 2Y-15.23%
Revenue Next 3Y-5.02%
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%