326.44 USD
-4.49 (-1.36%)
At close: Jan 30, 2026
326.44 USD
0 (0%)
After Hours: 1/30/2026, 8:00:02 PM
Overall IDCC gets a fundamental rating of 7 out of 10. We evaluated IDCC against 278 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. This makes IDCC very considerable 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.
- IDCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- IDCC has a Return On Assets of 23.22%. This is amongst the best in the industry. IDCC outperforms 96.76% of its industry peers.
- Looking at the Return On Equity, with a value of 45.16%, IDCC belongs to the top of the industry, outperforming 95.32% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 36.86%, IDCC belongs to the best of the industry, outperforming 98.20% of the companies in the same industry.
- IDCC had an Average Return On Invested Capital over the past 3 years of 21.38%. This is significantly above the industry average of 10.73%.
- 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 Profit Margin of 53.50%. This is amongst the best in the industry. IDCC outperforms 93.88% of its industry peers.
- IDCC's Profit Margin has improved in the last couple of years.
- IDCC has a better Operating Margin (61.99%) than 97.48% 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.
- 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.
- IDCC has a better debt/assets ratio than last year.
2.2 Solvency
- IDCC has an Altman-Z score of 7.93. 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 7.93, IDCC belongs to the top of the industry, outperforming 86.33% of the companies in the same industry.
- 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.
- IDCC has a Debt to FCF ratio of 0.80. This is in the better half of the industry: IDCC outperforms 76.62% of its industry peers.
- 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 63.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 7.93 |
ROIC/WACC3.35
WACC10.99%
2.3 Liquidity
- A Current Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
- IDCC has a Current ratio (1.89) which is comparable to the rest of the industry.
- A Quick Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.89, IDCC perfoms like the industry average, outperforming 57.55% 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 | 1.89 | ||
| 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.
- 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 28.75%.
- The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
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 very negative growth in Earnings Per Share. The EPS will decrease by -11.88% on average per year.
- IDCC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.23% yearly.
EPS Next Y-1.45%
EPS Next 2Y-27.18%
EPS Next 3Y-11.88%
EPS Next 5YN/A
Revenue Next Year-3.9%
Revenue Next 2Y-10.41%
Revenue Next 3Y-5.23%
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.
- 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
- IDCC is valuated rather expensively with a Price/Earnings ratio of 22.03.
- IDCC's Price/Earnings ratio is a bit cheaper when compared to the industry. IDCC is cheaper than 69.42% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, IDCC is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 51.12, the valuation of IDCC can be described as expensive.
- IDCC's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. IDCC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 51.12 |
4.2 Price Multiples
- 85.61% of the companies in the same industry are more expensive than IDCC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, IDCC is valued cheaply inside the industry as 85.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.23 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
- IDCC has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as IDCC's earnings are expected to decrease with -11.88% in the coming years.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-27.18%
EPS Next 3Y-11.88%
5. Dividend
5.1 Amount
- IDCC has a yearly dividend return of 0.85%, which is pretty low.
- IDCC's Dividend Yield is rather good when compared to the industry average which is at 0.56. IDCC pays more dividend than 91.01% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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 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 10.87% of its income as dividend. This is a sustainable payout ratio.
DP10.87%
EPS Next 2Y-27.18%
EPS Next 3Y-11.88%
INTERDIGITAL INC / IDCC FAQ
What is the fundamental rating for IDCC stock?
ChartMill assigns a fundamental rating of 7 / 10 to IDCC.
Can you provide the valuation status for INTERDIGITAL INC?
ChartMill assigns a valuation rating of 5 / 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.
How financially healthy is INTERDIGITAL INC?
The financial health rating of INTERDIGITAL INC (IDCC) is 8 / 10.
How sustainable is the dividend of INTERDIGITAL INC (IDCC) stock?
The dividend rating of INTERDIGITAL INC (IDCC) is 5 / 10 and the dividend payout ratio is 10.87%.