NASDAQ:IDCC stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Apr 8, 2024

Discover INTERDIGITAL INC (NASDAQ:IDCC)—an undervalued stock our stock screener has picked out. NASDAQ:IDCC demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Assessing Valuation for NASDAQ:IDCC

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:IDCC was assigned a score of 7 for valuation:

IDCC's Price/Earnings ratio is rather cheap when compared to the industry. IDCC is cheaper than 91.34% of the companies in the same industry.
IDCC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.07.
IDCC's Price/Forward Earnings ratio is rather cheap when compared to the industry. IDCC is cheaper than 88.45% of the companies in the same industry.
IDCC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.35.
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaper than 98.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued cheaper than 92.06% of the companies in the same industry.
IDCC has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:IDCC

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:IDCC was assigned a score of 8 for profitability:

With an excellent Return On Assets value of 12.09%, IDCC belongs to the best of the industry, outperforming 92.78% of the companies in the same industry.
IDCC has a better Return On Equity (36.81%) than 95.67% of its industry peers.
IDCC's Return On Invested Capital of 20.97% is amongst the best of the industry. IDCC outperforms 96.39% of its industry peers.
The last Return On Invested Capital (20.97%) for IDCC is above the 3 year average (11.85%), which is a sign of increasing profitability.
IDCC has a Profit Margin of 38.95%. This is amongst the best in the industry. IDCC outperforms 97.47% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
IDCC has a better Operating Margin (40.34%) than 98.56% of its industry peers.
IDCC's Operating Margin has improved in the last couple of years.

Deciphering NASDAQ:IDCC's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:IDCC has earned a 6 out of 10:

IDCC has an Altman-Z score of 3.31. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
IDCC has a debt to FCF ratio of 3.59. This is a good value and a sign of high solvency as IDCC would need 3.59 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.59, IDCC is in the better half of the industry, outperforming 67.51% of the companies in the same industry.
IDCC has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.

How do we evaluate the Growth for NASDAQ:IDCC?

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:IDCC has received a 5 out of 10:

The Earnings Per Share has grown by an impressive 114.90% over the past year.
Measured over the past years, IDCC shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.56% on average per year.
IDCC shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.03%.
IDCC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.32% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of IDCC contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.