INTERDIGITAL INC (IDCC)
US45867G1013 - Common Stock
IDCC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 276 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!.
1. Profitability
1.1 Basic Checks
In the past year IDCC was profitable.
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.
1.2 Ratios
The Return On Assets of IDCC (12.09%) is better than 92.70% of its industry peers.
IDCC has a better Return On Equity (36.81%) than 95.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.97%, IDCC belongs to the top of the industry, outperforming 96.35% of the companies in the same industry.
IDCC had an Average Return On Invested Capital over the past 3 years of 11.85%. This is in line with the industry average of 10.21%.
The 3 year average ROIC (11.85%) for IDCC is below the current ROIC(20.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.09% | ||
| ROE | 36.81% | ||
| ROIC | 20.97% |
ROA(3y)6.81%
ROA(5y)4.9%
ROE(3y)19.05%
ROE(5y)13.14%
ROIC(3y)11.85%
ROIC(5y)8.3%
1.3 Margins
IDCC has a better Profit Margin (38.95%) than 97.45% of its industry peers.
In the last couple of years the Profit Margin of IDCC has grown nicely.
IDCC's Operating Margin of 40.34% is amongst the best of the industry. IDCC outperforms 98.54% of its industry peers.
IDCC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.34% | ||
| PM (TTM) | 38.95% | ||
| GM | N/A |
OM growth 3Y37.9%
OM growth 5Y14.64%
PM growth 3Y46.14%
PM growth 5Y13%
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.
Compared to 1 year ago, IDCC has less shares outstanding
Compared to 5 years ago, IDCC has less shares outstanding
Compared to 1 year ago, IDCC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.37 indicates that IDCC is not in any danger for bankruptcy at the moment.
IDCC's Altman-Z score of 3.37 is fine compared to the rest of the industry. IDCC outperforms 61.31% of its industry peers.
IDCC has a debt to FCF ratio of 3.59. This is a good value and a sign of high solvency as IDCC would need 3.59 years to pay back of all of its debts.
IDCC has a Debt to FCF ratio of 3.59. This is in the better half of the industry: IDCC outperforms 65.69% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that IDCC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.05, IDCC is doing good in the industry, outperforming 60.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 3.37 |
ROIC/WACC2.24
WACC9.37%
2.3 Liquidity
A Current Ratio of 1.33 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Current ratio (1.33) which is comparable to the rest of the industry.
A Quick Ratio of 1.33 indicates that IDCC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.33, IDCC perfoms like the industry average, outperforming 41.61% of the companies in the same industry.
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 | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 114.90% over the past year.
The Earnings Per Share has been growing by 34.56% 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 20.03%.
Measured over the past years, IDCC shows a quite strong growth in Revenue. The Revenue has been growing by 12.32% on average per year.
EPS 1Y (TTM)114.9%
EPS 3Y73.34%
EPS 5Y34.56%
EPS growth Q2Q30.56%
Revenue 1Y (TTM)20.03%
Revenue growth 3Y15.25%
Revenue growth 5Y12.32%
Revenue growth Q2Q-9.89%
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 -21.77% on average per year.
IDCC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.07% yearly.
EPS Next Y-22.17%
EPS Next 2Y-21.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.66%
Revenue Next 2Y-4.07%
Revenue Next 3YN/A
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
With a Price/Earnings ratio of 13.39, IDCC is valued correctly.
Based on the Price/Earnings ratio, IDCC is valued cheaply inside the industry as 90.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.84, IDCC is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.21, which indicates a rather expensive current valuation of IDCC.
87.23% of the companies in the same industry are more expensive than IDCC, based on the Price/Forward Earnings ratio.
IDCC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 17.21 |
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 98.18% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued cheaply inside the industry as 89.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.14 | ||
| EV/EBITDA | 3.44 |
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 -21.77% in the coming years.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-21.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IDCC has a Yearly Dividend Yield of 1.60%.
Compared to an average industry Dividend Yield of 11.45, IDCC pays a better dividend. On top of this IDCC pays more dividend than 94.16% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, IDCC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of IDCC has a limited annual growth rate of 0.04%.
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)0.04%
Div Incr Years1
Div Non Decr Years10
5.3 Sustainability
18.43% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
DP18.43%
EPS Next 2Y-21.77%
EPS Next 3YN/A
INTERDIGITAL INC
NASDAQ:IDCC (4/29/2024, 11:04:36 AM)
100.44
-0.27 (-0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 17.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.09% | ||
| ROE | 36.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 40.34% | ||
| PM (TTM) | 38.95% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)114.9%
EPS 3Y73.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y-22.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.03%
Revenue growth 3Y15.25%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y