INTERDIGITAL INC (IDCC) Fundamental Analysis & Valuation

NASDAQ:IDCC • US45867G1013

Current stock price

302 USD
+7.3 (+2.48%)
At close:
302 USD
0 (0%)
Pre-Market:

This IDCC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. IDCC Profitability Analysis

1.1 Basic Checks

  • IDCC had positive earnings in the past year.
  • 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.
IDCC Yearly Net Income VS EBIT VS OCF VS FCFIDCC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

1.2 Ratios

  • IDCC has a better Return On Assets (19.70%) than 96.00% of its industry peers.
  • The Return On Equity of IDCC (36.93%) is better than 93.82% of its industry peers.
  • The Return On Invested Capital of IDCC (29.89%) is better than 97.45% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 10.92%.
  • The last Return On Invested Capital (29.89%) for IDCC is above the 3 year average (28.26%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 19.7%
ROE 36.93%
ROIC 29.89%
ROA(3y)17.11%
ROA(5y)11.93%
ROE(3y)38.53%
ROE(5y)27.18%
ROIC(3y)28.26%
ROIC(5y)19.9%
IDCC Yearly ROA, ROE, ROICIDCC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 48.76%, IDCC belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of IDCC has grown nicely.
  • The Operating Margin of IDCC (55.26%) is better than 99.27% of its industry peers.
  • IDCC's Operating Margin has improved in the last couple of years.
  • IDCC has a Gross Margin of 88.77%. This is amongst the best in the industry. IDCC outperforms 95.64% of its industry peers.
Industry RankSector Rank
OM 55.26%
PM (TTM) 48.76%
GM 88.77%
OM growth 3Y18.04%
OM growth 5Y29.15%
PM growth 3Y33.55%
PM growth 5Y31.33%
GM growth 3YN/A
GM growth 5YN/A
IDCC Yearly Profit, Operating, Gross MarginsIDCC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. IDCC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IDCC is creating value.
  • The number of shares outstanding for IDCC remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for IDCC has been reduced compared to 5 years ago.
  • The debt/assets ratio for IDCC has been reduced compared to a year ago.
IDCC Yearly Shares OutstandingIDCC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
IDCC Yearly Total Debt VS Total AssetsIDCC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • IDCC has an Altman-Z score of 7.78. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.78, IDCC belongs to the best of the industry, outperforming 87.64% of the companies in the same industry.
  • The Debt to FCF ratio of IDCC is 1.00, which is an excellent value as it means it would take IDCC, only 1.00 years of fcf income to pay off all of its debts.
  • IDCC has a better Debt to FCF ratio (1.00) than 74.55% of its industry peers.
  • A Debt/Equity ratio of 0.01 indicates that IDCC is not too dependend on debt financing.
  • IDCC has a better Debt to Equity ratio (0.01) than 61.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 1
Altman-Z 7.78
ROIC/WACC2.75
WACC10.86%
IDCC Yearly LT Debt VS Equity VS FCFIDCC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • IDCC has a Current Ratio of 1.84. This is a normal value and indicates that IDCC is financially healthy and should not expect problems in meeting its short term obligations.
  • IDCC has a Current ratio of 1.84. This is comparable to the rest of the industry: IDCC outperforms 55.27% of its industry peers.
  • IDCC has a Quick Ratio of 1.84. 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 Quick ratio of 1.84 is in line compared to the rest of the industry. IDCC outperforms 56.00% of its industry peers.
  • 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 RankSector Rank
Current Ratio 1.84
Quick Ratio 1.84
IDCC Yearly Current Assets VS Current LiabilitesIDCC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. IDCC Growth Analysis

3.1 Past

  • IDCC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.91%.
  • Measured over the past years, IDCC shows a very strong growth in Earnings Per Share. The EPS has been growing by 52.64% on average per year.
  • The Revenue has decreased by -3.97% in the past year.
  • IDCC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.36% yearly.
EPS 1Y (TTM)-0.91%
EPS 3Y50.64%
EPS 5Y52.64%
EPS Q2Q%-70.66%
Revenue 1Y (TTM)-3.97%
Revenue growth 3Y22.13%
Revenue growth 5Y18.36%
Sales Q2Q%-37.41%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.43% on average over the next years.
  • The Revenue is expected to grow by 7.43% on average over the next years.
EPS Next Y-39.98%
EPS Next 2Y-11.32%
EPS Next 3Y7.43%
EPS Next 5YN/A
Revenue Next Year-14.73%
Revenue Next 2Y-6.11%
Revenue Next 3Y7.43%
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.
IDCC Yearly Revenue VS EstimatesIDCC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
IDCC Yearly EPS VS EstimatesIDCC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10

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4

4. IDCC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 25.31 indicates a quite expensive valuation of IDCC.
  • IDCC's Price/Earnings ratio is in line with the industry average.
  • IDCC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.35.
  • A Price/Forward Earnings ratio of 42.18 indicates a quite expensive valuation of IDCC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of IDCC is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.61, IDCC is valued quite expensively.
Industry RankSector Rank
PE 25.31
Fwd PE 42.18
IDCC Price Earnings VS Forward Price EarningsIDCC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaply inside the industry as 83.64% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, IDCC is valued a bit cheaper than 78.91% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.37
EV/EBITDA 12.05
IDCC Per share dataIDCC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The excellent profitability rating of IDCC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-11.32%
EPS Next 3Y7.43%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. IDCC Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.94%, IDCC is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.66, IDCC pays a better dividend. On top of this IDCC pays more dividend than 90.55% of the companies listed in the same industry.
  • With a Dividend Yield of 0.94, IDCC pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.94%

5.2 History

  • The dividend of IDCC is nicely growing with an annual growth rate of 11.01%!
  • 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)11.01%
Div Incr Years2
Div Non Decr Years11
IDCC Yearly Dividends per shareIDCC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • IDCC pays out 14.92% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of IDCC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.92%
EPS Next 2Y-11.32%
EPS Next 3Y7.43%
IDCC Yearly Income VS Free CF VS DividendIDCC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
IDCC Dividend Payout.IDCC Dividend Payout, showing the Payout Ratio.IDCC Dividend Payout.PayoutRetained Earnings

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IDCC Fundamentals: All Metrics, Ratios and Statistics

INTERDIGITAL INC

NASDAQ:IDCC (3/31/2026, 8:00:01 PM)

Premarket: 302 0 (0%)

302

+7.3 (+2.48%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners105.88%
Inst Owner Change3.86%
Ins Owners1.06%
Ins Owner Change-2.87%
Market Cap7.76B
Revenue(TTM)834.01M
Net Income(TTM)406.64M
Analysts87.27
Price Target411.95 (36.41%)
Short Float %10.66%
Short Ratio6.55
Dividend
Industry RankSector Rank
Dividend Yield 0.94%
Yearly Dividend2.36
Dividend Growth(5Y)11.01%
DP14.92%
Div Incr Years2
Div Non Decr Years11
Ex-Date01-14
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.86%
Min EPS beat(2)18.04%
Max EPS beat(2)23.67%
EPS beat(4)4
Avg EPS beat(4)36.53%
Min EPS beat(4)13.22%
Max EPS beat(4)91.19%
EPS beat(8)7
Avg EPS beat(8)198.3%
EPS beat(12)11
Avg EPS beat(12)189.84%
EPS beat(16)14
Avg EPS beat(16)153.17%
Revenue beat(2)2
Avg Revenue beat(2)4.14%
Min Revenue beat(2)3.01%
Max Revenue beat(2)5.28%
Revenue beat(4)4
Avg Revenue beat(4)20.54%
Min Revenue beat(4)0.55%
Max Revenue beat(4)73.32%
Revenue beat(8)8
Avg Revenue beat(8)29.77%
Revenue beat(12)10
Avg Revenue beat(12)30.82%
Revenue beat(16)14
Avg Revenue beat(16)23.71%
PT rev (1m)0%
PT rev (3m)7.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.54%
EPS NY rev (1m)3.85%
EPS NY rev (3m)7.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)23.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.71%
Valuation
Industry RankSector Rank
PE 25.31
Fwd PE 42.18
P/S 9.3
P/FCF 16.37
P/OCF 14.25
P/B 7.05
P/tB 10.23
EV/EBITDA 12.05
EPS(TTM)11.93
EY3.95%
EPS(NY)7.16
Fwd EY2.37%
FCF(TTM)18.45
FCFY6.11%
OCF(TTM)21.19
OCFY7.02%
SpS32.46
BVpS42.86
TBVpS29.52
PEG (NY)N/A
PEG (5Y)0.48
Graham Number107.26
Profitability
Industry RankSector Rank
ROA 19.7%
ROE 36.93%
ROCE 35.13%
ROIC 29.89%
ROICexc 571.25%
ROICexgc N/A
OM 55.26%
PM (TTM) 48.76%
GM 88.77%
FCFM 56.83%
ROA(3y)17.11%
ROA(5y)11.93%
ROE(3y)38.53%
ROE(5y)27.18%
ROIC(3y)28.26%
ROIC(5y)19.9%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.22%
ROCE(5y)23.4%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y165.16%
ROICexc growth 5Y116.81%
OM growth 3Y18.04%
OM growth 5Y29.15%
PM growth 3Y33.55%
PM growth 5Y31.33%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 1
Debt/EBITDA 0.03
Cap/Depr 90.95%
Cap/Sales 8.45%
Interest Coverage 28.62
Cash Conversion 101.13%
Profit Quality 116.55%
Current Ratio 1.84
Quick Ratio 1.84
Altman-Z 7.78
F-Score8
WACC10.86%
ROIC/WACC2.75
Cap/Depr(3y)79.47%
Cap/Depr(5y)68.37%
Cap/Sales(3y)7.94%
Cap/Sales(5y)8.44%
Profit Quality(3y)84.57%
Profit Quality(5y)135.96%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.91%
EPS 3Y50.64%
EPS 5Y52.64%
EPS Q2Q%-70.66%
EPS Next Y-39.98%
EPS Next 2Y-11.32%
EPS Next 3Y7.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.97%
Revenue growth 3Y22.13%
Revenue growth 5Y18.36%
Sales Q2Q%-37.41%
Revenue Next Year-14.73%
Revenue Next 2Y-6.11%
Revenue Next 3Y7.43%
Revenue Next 5YN/A
EBIT growth 1Y4.86%
EBIT growth 3Y44.17%
EBIT growth 5Y52.87%
EBIT Next Year-12.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y127.26%
FCF growth 3Y24.91%
FCF growth 5Y31.38%
OCF growth 1Y100.51%
OCF growth 3Y23.94%
OCF growth 5Y27.2%

INTERDIGITAL INC / IDCC Fundamental Analysis 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 4 / 10 to INTERDIGITAL INC (IDCC). This can be considered as Fairly Valued.


How profitable is INTERDIGITAL INC (IDCC) stock?

INTERDIGITAL INC (IDCC) has a profitability rating of 9 / 10.


What is the expected EPS growth for INTERDIGITAL INC (IDCC) stock?

The Earnings per Share (EPS) of INTERDIGITAL INC (IDCC) is expected to decline by -39.98% in the next year.


Can you provide the dividend sustainability for IDCC stock?

The dividend rating of INTERDIGITAL INC (IDCC) is 6 / 10 and the dividend payout ratio is 14.92%.