337.74 USD
-13.92 (-3.96%)
335.01 USD
-2.73 (-0.81%)
IDCC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. IDCC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IDCC has a correct valuation and a medium 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.
IDCC had positive earnings in each of the past 5 years.
Each year in the past 5 years IDCC had a positive operating cash flow.
1.2 Ratios
IDCC has a better Return On Assets (23.22%) than 96.80% of its industry peers.
IDCC has a better Return On Equity (45.16%) than 95.37% of its industry peers.
IDCC's Return On Invested Capital of 36.86% is amongst the best of the industry. IDCC outperforms 97.86% 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 12.03%.
The last Return On Invested Capital (36.86%) for IDCC is above the 3 year average (21.38%), which is a sign of increasing profitability.
| 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
IDCC has a better Profit Margin (53.50%) than 94.66% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
IDCC has a Operating Margin of 61.99%. This is amongst the best in the industry. IDCC outperforms 97.51% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IDCC is creating value.
The number of shares outstanding for IDCC has been increased compared to 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 8.10 indicates that IDCC is not in any danger for bankruptcy at the moment.
IDCC has a Altman-Z score of 8.10. This is amongst the best in the industry. IDCC outperforms 82.56% of its industry peers.
The Debt to FCF ratio of IDCC is 0.80, which is an excellent value as it means it would take IDCC, only 0.80 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.80, IDCC is doing good in the industry, outperforming 77.22% of the companies in the same industry.
A Debt/Equity ratio of 0.02 indicates that IDCC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.02, IDCC is in the better half of the industry, outperforming 63.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 8.1 |
ROIC/WACC3.44
WACC10.7%
2.3 Liquidity
IDCC has a Current 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 Current ratio of 1.89 is in line compared to the rest of the industry. IDCC outperforms 58.36% of its industry peers.
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.
The Quick ratio of IDCC (1.89) is comparable to the rest of the industry.
IDCC does not score too well on the current and quick ratio evaluation. However, as it has 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.
Looking at the last year, IDCC shows a very strong growth in Revenue. 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
Based on estimates for the next years, IDCC will show a decrease in Earnings Per Share. The EPS will decrease by -6.11% on average per year.
The Revenue is expected to decrease by -5.26% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 22.79, the valuation of IDCC can be described as rather expensive.
69.04% of the companies in the same industry are more expensive than IDCC, based on the Price/Earnings ratio.
IDCC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 51.21 indicates a quite expensive valuation of IDCC.
The rest of the industry has a similar Price/Forward Earnings ratio as IDCC.
The average S&P500 Price/Forward Earnings ratio is at 36.22. IDCC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 51.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaply inside the industry as 86.12% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IDCC is valued cheaply inside the industry as 85.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.73 | ||
| EV/EBITDA | 11.49 |
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)0.29
EPS Next 2Y-25.99%
EPS Next 3Y-6.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, IDCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 59.20, IDCC pays a better dividend. On top of this IDCC pays more dividend than 90.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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 their dividend for at least 10 years, which is a reliable track record.
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%
337.74
-13.92 (-3.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.87%
Inst Owner Change3.7%
Ins Owners1.26%
Ins Owner Change-1.11%
Market Cap8.69B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (13.28%)
Short Float %12.68%
Short Ratio8.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)21.59%
PT rev (3m)48.65%
EPS NQ rev (1m)-23.82%
EPS NQ rev (3m)-28.98%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-4.69%
Revenue NQ rev (3m)-6.87%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 51.21 | ||
| P/S | 9.36 | ||
| P/FCF | 14.73 | ||
| P/OCF | 12.92 | ||
| P/B | 7.9 | ||
| P/tB | 11.39 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)14.82
EY4.39%
EPS(NY)6.6
Fwd EY1.95%
FCF(TTM)22.93
FCFY6.79%
OCF(TTM)26.15
OCFY7.74%
SpS36.08
BVpS42.73
TBVpS29.66
PEG (NY)N/A
PEG (5Y)0.29
Graham Number119.37
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 | 8.1 |
F-Score9
WACC10.7%
ROIC/WACC3.44
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%.