INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
USA - NASDAQ:IDCC - US45867G1013 - Common Stock
353.18 USD
+4.79 (+1.37%)
Overall IDCC gets a fundamental rating of 6 out of 10. We evaluated IDCC against 281 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 has a decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years IDCC has been profitable.
IDCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.35%, IDCC belongs to the top of the industry, outperforming 96.09% of the companies in the same industry.
IDCC has a better Return On Equity (42.65%) than 94.66% of its industry peers.
IDCC has a better Return On Invested Capital (36.65%) than 98.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 11.95%.
The 3 year average ROIC (21.38%) for IDCC is below the current ROIC(36.65%), indicating increased profibility in the last year.
| 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
The Profit Margin of IDCC (51.92%) is better than 94.66% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 60.40%, IDCC belongs to the top of the industry, outperforming 97.86% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IDCC is creating value.
IDCC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IDCC has less shares outstanding
The debt/assets ratio for IDCC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.20 indicates that IDCC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.20, IDCC belongs to the best of the industry, outperforming 83.63% 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.
The Debt to FCF ratio of IDCC (1.72) is better than 69.39% of its industry peers.
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 63.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 9.2 |
ROIC/WACC3.27
WACC11.22%
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.
IDCC's Current ratio of 1.96 is fine compared to the rest of the industry. IDCC outperforms 61.21% of its industry peers.
A Quick Ratio of 1.96 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Quick ratio of 1.96. This is in the better half of the industry: IDCC outperforms 61.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 |
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.
The Earnings Per Share has been growing by 78.74% on average over the past years. This is a very strong growth
IDCC shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.83%.
Measured over the past years, IDCC shows a very strong growth in Revenue. The Revenue has been growing by 22.19% on average per year.
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
Based on estimates for the next years, IDCC will show a decrease in Earnings Per Share. The EPS will decrease by -8.78% on average per year.
Based on estimates for the next years, IDCC will show a decrease in Revenue. The Revenue will decrease by -2.62% on average per year.
EPS Next Y6.07%
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
EPS Next 5YN/A
Revenue Next Year-4.18%
Revenue Next 2Y-12.36%
Revenue Next 3Y-2.62%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.17 indicates a quite expensive valuation of IDCC.
Based on the Price/Earnings ratio, IDCC is valued a bit cheaper than 70.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.79. IDCC is around the same levels.
IDCC is valuated quite expensively with a Price/Forward Earnings ratio of 49.50.
The rest of the industry has a similar Price/Forward Earnings ratio as IDCC.
IDCC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 49.5 |
4.2 Price Multiples
IDCC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IDCC is cheaper than 86.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued a bit cheaper than 69.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.23 | ||
| EV/EBITDA | 13.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IDCC does not grow enough to justify the current Price/Earnings ratio.
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)4.15
PEG (5Y)0.32
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
5. Dividend
5.1 Amount
IDCC has a yearly dividend return of 0.81%, which is pretty low.
Compared to an average industry Dividend Yield of 39.95, IDCC pays a better dividend. On top of this IDCC pays more dividend than 92.17% of the companies listed in the same industry.
With a Dividend Yield of 0.81, IDCC pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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
IDCC pays out 10.48% of its income as dividend. This is a sustainable payout ratio.
DP10.48%
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
NASDAQ:IDCC (10/2/2025, 12:26:52 PM)
353.18
+4.79 (+1.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.87%
Inst Owner Change-3.56%
Ins Owners1.26%
Ins Owner Change2.37%
Market Cap9.11B
Analysts80
Price Target291.41 (-17.49%)
Short Float %8.53%
Short Ratio6.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)13.22%
PT rev (3m)45.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.1%
EPS NY rev (1m)6.88%
EPS NY rev (3m)43.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)16.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 49.5 | ||
| P/S | 10.21 | ||
| P/FCF | 33.23 | ||
| P/OCF | 25.68 | ||
| P/B | 8.38 | ||
| P/tB | 12.21 | ||
| EV/EBITDA | 13.24 |
EPS(TTM)14.03
EY3.97%
EPS(NY)7.13
Fwd EY2.02%
FCF(TTM)10.63
FCFY3.01%
OCF(TTM)13.75
OCFY3.89%
SpS34.6
BVpS42.12
TBVpS28.93
PEG (NY)4.15
PEG (5Y)0.32
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 | 9.2 |
F-Score8
WACC11.22%
ROIC/WACC3.27
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 Y6.07%
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-4.18%
Revenue Next 2Y-12.36%
Revenue Next 3Y-2.62%
Revenue Next 5YN/A
EBIT growth 1Y70.25%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year26.16%
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%