INTERDIGITAL INC (IDCC) Fundamental Analysis & Valuation

NASDAQ:IDCC • US45867G1013

365.72 USD
+1.95 (+0.54%)
At close: Mar 10, 2026
365.72 USD
0 (0%)
After Hours: 3/10/2026, 8:00:03 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

7

IDCC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 277 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 has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

9

1. IDCC Profitability Analysis

1.1 Basic Checks

  • IDCC had positive earnings in the past year.
  • IDCC had a positive operating cash flow in the past year.
  • In the past 5 years IDCC has always been profitable.
  • IDCC had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of IDCC (19.70%) is better than 95.67% of its industry peers.
  • With an excellent Return On Equity value of 36.93%, IDCC belongs to the best of the industry, outperforming 93.86% of the companies in the same industry.
  • IDCC has a better Return On Invested Capital (29.89%) than 97.47% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 10.89%.
  • 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

  • IDCC has a better Profit Margin (48.76%) than 95.31% of its industry peers.
  • IDCC's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 55.26%, IDCC belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
  • In the last couple of years the Operating Margin of IDCC has grown nicely.
  • Looking at the Gross Margin, with a value of 88.77%, IDCC belongs to the top of the industry, outperforming 94.95% of the companies in the same industry.
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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IDCC is creating value.
  • IDCC has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, IDCC has less shares outstanding
  • IDCC has a better debt/assets ratio than last year.
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 8.76. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of IDCC (8.76) is better than 89.17% of its industry peers.
  • 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.
  • With a decent Debt to FCF ratio value of 1.00, IDCC is doing good in the industry, outperforming 75.45% of the companies in the same industry.
  • A Debt/Equity ratio of 0.01 indicates that IDCC is not too dependend on debt financing.
  • IDCC has a Debt to Equity ratio of 0.01. This is in the better half of the industry: IDCC outperforms 63.18% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 1
Altman-Z 8.76
ROIC/WACC2.77
WACC10.78%
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 55.23% 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 has a Quick ratio of 1.84. This is comparable to the rest of the industry: IDCC outperforms 55.96% of its industry peers.
  • 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 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

  • The earnings per share for IDCC have decreased by -0.91% in the last year.
  • The Earnings Per Share has been growing by 52.64% on average over the past years. This is a very strong growth
  • IDCC shows a decrease in Revenue. In the last year, the revenue decreased by -3.97%.
  • Measured over the past years, IDCC shows a quite strong growth in Revenue. The Revenue has been growing by 18.36% on average per year.
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

  • Based on estimates for the next years, IDCC will show a small growth in Earnings Per Share. The EPS will grow by 7.43% on average per year.
  • 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

  • Based on the Price/Earnings ratio of 30.66, the valuation of IDCC can be described as expensive.
  • IDCC's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.25. IDCC is around the same levels.
  • IDCC is valuated quite expensively with a Price/Forward Earnings ratio of 51.08.
  • IDCC's Price/Forward Earnings is on the same level as the industry average.
  • IDCC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.39.
Industry RankSector Rank
PE 30.66
Fwd PE 51.08
IDCC Price Earnings VS Forward Price EarningsIDCC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaper than 81.95% of the companies in the same industry.
  • IDCC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IDCC is cheaper than 75.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.82
EV/EBITDA 14.99
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)0.58
EPS Next 2Y-11.32%
EPS Next 3Y7.43%

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

6

5. IDCC Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.77%, IDCC is not a good candidate for dividend investing.
  • IDCC's Dividend Yield is rather good when compared to the industry average which is at 0.57. IDCC pays more dividend than 90.25% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, IDCC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.77%

5.2 History

  • On average, the dividend of IDCC grows each year by 11.01%, which is quite nice.
  • IDCC has paid a dividend for at least 10 years, which is 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

  • 14.92% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
  • IDCC's earnings are growing slower than its dividend. 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

More info and screens

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IDCC Fundamentals: All Metrics, Ratios and Statistics

INTERDIGITAL INC

NASDAQ:IDCC (3/10/2026, 8:00:03 PM)

After market: 365.72 0 (0%)

365.72

+1.95 (+0.54%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners105.88%
Inst Owner Change3.85%
Ins Owners1.06%
Ins Owner Change-5.47%
Market Cap9.40B
Revenue(TTM)834.01M
Net Income(TTM)406.64M
Analysts87.27
Price Target411.95 (12.64%)
Short Float %11.93%
Short Ratio10.56
Dividend
Industry RankSector Rank
Dividend Yield 0.77%
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)20.71%
EPS NQ rev (3m)15.54%
EPS NY rev (1m)3.85%
EPS NY rev (3m)7.79%
Revenue NQ rev (1m)26.52%
Revenue NQ rev (3m)23.17%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)5.71%
Valuation
Industry RankSector Rank
PE 30.66
Fwd PE 51.08
P/S 11.27
P/FCF 19.82
P/OCF 17.26
P/B 8.53
P/tB 12.39
EV/EBITDA 14.99
EPS(TTM)11.93
EY3.26%
EPS(NY)7.16
Fwd EY1.96%
FCF(TTM)18.45
FCFY5.04%
OCF(TTM)21.19
OCFY5.79%
SpS32.46
BVpS42.86
TBVpS29.52
PEG (NY)N/A
PEG (5Y)0.58
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 8.76
F-Score8
WACC10.78%
ROIC/WACC2.77
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 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.


What is the profitability of IDCC stock?

INTERDIGITAL INC (IDCC) has a profitability rating of 9 / 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 6 / 10 and the dividend payout ratio is 14.92%.