INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
USA - NASDAQ:IDCC - US45867G1013 - Common Stock
354.63 USD
-17 (-4.57%)
355.58 USD
+0.95 (+0.27%)
IDCC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. IDCC gets an excellent profitability rating and is at the same time showing great financial health properties. IDCC has a decent growth rate and is not valued too expensively. These ratings could make IDCC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year IDCC was profitable.
IDCC had a positive operating cash flow in the past year.
In the past 5 years IDCC has always been profitable.
Each year in the past 5 years IDCC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IDCC (23.22%) is better than 96.80% of its industry peers.
IDCC has a Return On Equity of 45.16%. This is amongst the best in the industry. IDCC outperforms 95.73% of its industry peers.
IDCC's Return On Invested Capital of 36.86% is amongst the best of the industry. IDCC outperforms 97.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 11.92%.
The 3 year average ROIC (21.38%) for IDCC is below the current ROIC(36.86%), indicating increased profibility in the last year.
| 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's Profit Margin of 53.50% is amongst the best of the industry. IDCC outperforms 94.66% of its industry peers.
In the last couple of years the Profit Margin of IDCC has grown nicely.
IDCC's Operating Margin of 61.99% is amongst the best of the industry. IDCC outperforms 97.51% of its industry peers.
In the last couple of years the Operating Margin of IDCC has grown nicely.
| 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
An Altman-Z score of 8.61 indicates that IDCC is not in any danger for bankruptcy at the moment.
IDCC's Altman-Z score of 8.61 is amongst the best of the industry. IDCC outperforms 83.63% of its industry peers.
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's Debt to FCF ratio of 0.80 is fine compared to the rest of the industry. IDCC outperforms 77.22% of its industry peers.
IDCC has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of IDCC (0.02) is better than 63.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 8.61 |
ROIC/WACC3.4
WACC10.84%
2.3 Liquidity
IDCC has a Current Ratio of 1.89. This is a normal value and indicates that IDCC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.89, IDCC perfoms like the industry average, outperforming 58.72% of the companies in the same industry.
A Quick Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Quick ratio of 1.89. This is comparable to the rest of the industry: IDCC outperforms 59.43% 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 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.
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.
Looking at the last year, IDCC shows a very strong growth in Revenue. The Revenue has grown by 28.75%.
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)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
The Earnings Per Share is expected to decrease by -6.11% on average over the next years.
The Revenue is expected to decrease by -5.26% on average over the next years.
EPS Next Y-0.3%
EPS Next 2Y-25.99%
EPS Next 3Y-6.11%
EPS Next 5YN/A
Revenue Next Year-3.45%
Revenue Next 2Y-12.02%
Revenue Next 3Y-5.26%
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 23.93 indicates a rather expensive valuation of IDCC.
69.04% of the companies in the same industry are more expensive than IDCC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IDCC to the average of the S&P500 Index (26.34), we can say IDCC is valued inline with the index average.
IDCC is valuated quite expensively with a Price/Forward Earnings ratio of 53.77.
IDCC's Price/Forward Earnings is on the same level as the industry average.
IDCC is valuated expensively when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 53.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IDCC indicates a rather cheap valuation: IDCC is cheaper than 86.83% of the companies listed in the same industry.
83.63% of the companies in the same industry are more expensive than IDCC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.5 | ||
| EV/EBITDA | 12.87 |
4.3 Compensation for Growth
The excellent profitability rating of IDCC may justify a higher PE ratio.
A cheap valuation may be justified as IDCC's earnings are expected to decrease with -6.11% in the coming years.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-25.99%
EPS Next 3Y-6.11%
5. Dividend
5.1 Amount
IDCC has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 41.10, IDCC pays a better dividend. On top of this IDCC pays more dividend than 90.75% of the companies listed in the same industry.
With a Dividend Yield of 0.74, IDCC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of IDCC has a limited annual growth rate of 3.26%.
IDCC has paid a dividend for at least 10 years, which is 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-25.99%
EPS Next 3Y-6.11%
354.63
-17 (-4.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.87%
Inst Owner Change-0.72%
Ins Owners1.26%
Ins Owner Change-0.91%
Market Cap9.15B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target337.11 (-4.94%)
Short Float %9.43%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.87%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)57.43%
Min EPS beat(2)23.67%
Max EPS beat(2)91.19%
EPS beat(4)3
Avg EPS beat(4)31.34%
Min EPS beat(4)-2.73%
Max EPS beat(4)91.19%
EPS beat(8)7
Avg EPS beat(8)202.96%
EPS beat(12)11
Avg EPS beat(12)192.03%
EPS beat(16)14
Avg EPS beat(16)158.4%
Revenue beat(2)2
Avg Revenue beat(2)39.3%
Min Revenue beat(2)5.28%
Max Revenue beat(2)73.32%
Revenue beat(4)4
Avg Revenue beat(4)20.16%
Min Revenue beat(4)0.55%
Max Revenue beat(4)73.32%
Revenue beat(8)7
Avg Revenue beat(8)29.25%
Revenue beat(12)10
Avg Revenue beat(12)30.94%
Revenue beat(16)14
Avg Revenue beat(16)24.02%
PT rev (1m)7.13%
PT rev (3m)30.98%
EPS NQ rev (1m)-21.28%
EPS NQ rev (3m)-24.68%
EPS NY rev (1m)-6.01%
EPS NY rev (3m)29.38%
Revenue NQ rev (1m)-4.69%
Revenue NQ rev (3m)-4.65%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)17.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 53.77 | ||
| P/S | 9.85 | ||
| P/FCF | 15.5 | ||
| P/OCF | 13.59 | ||
| P/B | 8.32 | ||
| P/tB | 11.98 | ||
| EV/EBITDA | 12.87 |
EPS(TTM)14.82
EY4.18%
EPS(NY)6.6
Fwd EY1.86%
FCF(TTM)22.88
FCFY6.45%
OCF(TTM)26.09
OCFY7.36%
SpS35.99
BVpS42.63
TBVpS29.6
PEG (NY)N/A
PEG (5Y)0.3
Graham Number119.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.22% | ||
| ROE | 45.16% | ||
| ROCE | 42.5% | ||
| ROIC | 36.86% | ||
| ROICexc | 547.1% | ||
| ROICexgc | N/A | ||
| OM | 61.99% | ||
| PM (TTM) | 53.5% | ||
| GM | N/A | ||
| FCFM | 63.57% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score9
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 110.08% | ||
| Cap/Sales | 8.92% | ||
| Interest Coverage | 35.75 | ||
| Cash Conversion | 103.42% | ||
| Profit Quality | 118.82% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 8.61 |
F-Score9
WACC10.84%
ROIC/WACC3.4
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)58.33%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%69.3%
EPS Next Y-0.3%
EPS Next 2Y-25.99%
EPS Next 3Y-6.11%
EPS Next 5YN/A
Revenue 1Y (TTM)28.75%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%27.98%
Revenue Next Year-3.45%
Revenue Next 2Y-12.02%
Revenue Next 3Y-5.26%
Revenue Next 5YN/A
EBIT growth 1Y90.4%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year26.16%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y7.15%
FCF growth 3Y31.31%
FCF growth 5Y32.33%
OCF growth 1Y13.35%
OCF growth 3Y27.7%
OCF growth 5Y24.88%
INTERDIGITAL INC / IDCC FAQ
What is the fundamental rating for IDCC stock?
ChartMill assigns a fundamental rating of 7 / 10 to IDCC.
What is the valuation status of INTERDIGITAL INC (IDCC) stock?
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 8 / 10.
Can you provide the expected EPS growth for IDCC stock?
The Earnings per Share (EPS) of INTERDIGITAL INC (IDCC) is expected to decline by -0.3% in the next year.
Can you provide the dividend sustainability for IDCC stock?
The dividend rating of INTERDIGITAL INC (IDCC) is 5 / 10 and the dividend payout ratio is 10.87%.