INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
NASDAQ:IDCC - Nasdaq - US45867G1013 - Common Stock - Currency: USD
Overall IDCC gets a fundamental rating of 7 out of 10. We evaluated IDCC against 284 industry peers in the Software industry. Both the health and profitability get an excellent rating, making IDCC a very profitable company, without any liquidiy or solvency issues. IDCC is not valued too expensively and it also shows a decent growth rate. These ratings could make IDCC a good candidate 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.
IDCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IDCC (21.08%) is better than 95.07% of its industry peers.
With an excellent Return On Equity value of 41.90%, IDCC belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
IDCC has a better Return On Invested Capital (35.04%) than 97.89% 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 12.30%.
The 3 year average ROIC (21.38%) for IDCC is below the current ROIC(35.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.08% | ||
| ROE | 41.9% | ||
| ROIC | 35.04% |
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 (48.14%) than 98.24% of its industry peers.
In the last couple of years the Profit Margin of IDCC has grown nicely.
Looking at the Operating Margin, with a value of 57.34%, IDCC belongs to the top of the industry, outperforming 99.65% of the companies in the same industry.
In the last couple of years the Operating Margin of IDCC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 57.34% | ||
| PM (TTM) | 48.14% | ||
| 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.
IDCC has more shares outstanding than it did 1 year ago.
IDCC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IDCC has been reduced compared to a year ago.
2.2 Solvency
IDCC has an Altman-Z score of 6.76. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.76, IDCC is doing good in the industry, outperforming 76.06% of the companies in the same industry.
IDCC has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as IDCC would need 3.91 years to pay back of all of its debts.
The Debt to FCF ratio of IDCC (3.91) is better than 61.97% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that IDCC is not too dependend on debt financing.
IDCC has a better Debt to Equity ratio (0.02) than 62.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 6.76 |
ROIC/WACC3.19
WACC11%
2.3 Liquidity
A Current Ratio of 1.76 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Current ratio of 1.76. This is comparable to the rest of the industry: IDCC outperforms 55.28% of its industry peers.
A Quick Ratio of 1.76 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Quick ratio (1.76) which is comparable to the rest of the 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 | 1.76 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
IDCC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 85.44%, which is quite impressive.
Measured over the past years, IDCC shows a very strong growth in Earnings Per Share. The EPS has been growing by 78.74% on average per year.
The Revenue has grown by 33.52% in the past year. This is a very strong growth!
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)85.44%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%19.79%
Revenue 1Y (TTM)33.52%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%-20.12%
3.2 Future
IDCC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.44% yearly.
IDCC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.02% yearly.
EPS Next Y-25.83%
EPS Next 2Y-29.02%
EPS Next 3Y-13.44%
EPS Next 5YN/A
Revenue Next Year-17.92%
Revenue Next 2Y-15.18%
Revenue Next 3Y-5.02%
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 17.60 indicates a rather expensive valuation of IDCC.
Based on the Price/Earnings ratio, IDCC is valued cheaply inside the industry as 84.51% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.55. IDCC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 36.58, the valuation of IDCC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IDCC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.40. IDCC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 36.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaper than 91.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued a bit cheaper than 63.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.76 | ||
| EV/EBITDA | 9.28 |
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)0.22
EPS Next 2Y-29.02%
EPS Next 3Y-13.44%
5. Dividend
5.1 Amount
IDCC has a Yearly Dividend Yield of 1.06%.
IDCC's Dividend Yield is rather good when compared to the industry average which is at 16.44. IDCC pays more dividend than 92.96% of the companies in the same industry.
With a Dividend Yield of 1.06, IDCC pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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
10.99% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
DP10.99%
EPS Next 2Y-29.02%
EPS Next 3Y-13.44%
221.94
+0.3 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.33%
Inst Owner Change4.52%
Ins Owners1.2%
Ins Owner Change2.62%
Market Cap5.76B
Analysts78.33
Price Target200.26 (-9.77%)
Short Float %7.38%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.99%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.24%
Min EPS beat(2)-2.73%
Max EPS beat(2)13.22%
EPS beat(4)3
Avg EPS beat(4)362.71%
Min EPS beat(4)-2.73%
Max EPS beat(4)1074.68%
EPS beat(8)7
Avg EPS beat(8)209.88%
EPS beat(12)11
Avg EPS beat(12)194.88%
EPS beat(16)14
Avg EPS beat(16)174.47%
Revenue beat(2)2
Avg Revenue beat(2)1.01%
Min Revenue beat(2)0.55%
Max Revenue beat(2)1.48%
Revenue beat(4)4
Avg Revenue beat(4)38.33%
Min Revenue beat(4)0.55%
Max Revenue beat(4)119.82%
Revenue beat(8)6
Avg Revenue beat(8)23.88%
Revenue beat(12)10
Avg Revenue beat(12)24.69%
Revenue beat(16)14
Avg Revenue beat(16)20.29%
PT rev (1m)-10.93%
PT rev (3m)0.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)32.24%
EPS NY rev (1m)6.25%
EPS NY rev (3m)6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)15.33%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 36.58 | ||
| P/S | 7.06 | ||
| P/FCF | 47.76 | ||
| P/OCF | 28.68 | ||
| P/B | 6.14 | ||
| P/tB | 9.63 | ||
| EV/EBITDA | 9.28 |
EPS(TTM)12.61
EY5.68%
EPS(NY)6.07
Fwd EY2.73%
FCF(TTM)4.65
FCFY2.09%
OCF(TTM)7.74
OCFY3.49%
SpS31.44
BVpS36.12
TBVpS23.04
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.08% | ||
| ROE | 41.9% | ||
| ROCE | 40.4% | ||
| ROIC | 35.04% | ||
| ROICexc | 147.97% | ||
| ROICexgc | N/A | ||
| OM | 57.34% | ||
| PM (TTM) | 48.14% | ||
| GM | N/A | ||
| FCFM | 14.78% |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 113.18% | ||
| Cap/Sales | 9.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.28% | ||
| Profit Quality | 30.71% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 6.76 |
F-Score8
WACC11%
ROIC/WACC3.19
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)85.44%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%19.79%
EPS Next Y-25.83%
EPS Next 2Y-29.02%
EPS Next 3Y-13.44%
EPS Next 5YN/A
Revenue 1Y (TTM)33.52%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%-20.12%
Revenue Next Year-17.92%
Revenue Next 2Y-15.18%
Revenue Next 3Y-5.02%
Revenue Next 5YN/A
EBIT growth 1Y126.81%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year5.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-48.71%
FCF growth 3Y31.31%
FCF growth 5Y32.33%
OCF growth 1Y-27.28%
OCF growth 3Y27.7%
OCF growth 5Y24.88%