354.28 USD
-3.66 (-1.02%)
354.28 USD
0 (0%)
Overall IDCC gets a fundamental rating of 7 out of 10. We evaluated IDCC against 280 industry peers in the Software industry. IDCC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. IDCC has a correct valuation and a medium growth rate. These ratings would make IDCC suitable 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.
Each year in the past 5 years IDCC has been profitable.
In the past 5 years IDCC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.22%, IDCC belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
IDCC has a Return On Equity of 45.16%. This is amongst the best in the industry. IDCC outperforms 95.36% of its industry peers.
IDCC has a better Return On Invested Capital (36.86%) than 98.21% of its industry peers.
IDCC had an Average Return On Invested Capital over the past 3 years of 21.38%. This is significantly above the industry average of 10.98%.
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
Looking at the Profit Margin, with a value of 53.50%, IDCC belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
IDCC's Profit Margin has improved in the last couple of years.
IDCC has a better Operating Margin (61.99%) than 97.50% 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
IDCC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, IDCC has an improved debt to assets ratio.
2.2 Solvency
IDCC has an Altman-Z score of 8.40. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
IDCC's Altman-Z score of 8.40 is amongst the best of the industry. IDCC outperforms 82.86% 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.
With a decent Debt to FCF ratio value of 0.80, IDCC is doing good in the industry, outperforming 76.43% of the companies in the same industry.
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 63.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 8.4 |
ROIC/WACC3.41
WACC10.8%
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 of 1.89. This is comparable to the rest of the industry: IDCC outperforms 58.21% of its industry peers.
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 58.57% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 58.33% 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 78.74% on average per year.
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.
The Revenue is expected to decrease by -5.95% on average over the next years.
EPS Next Y-1.45%
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
EPS Next 5YN/A
Revenue Next Year-3.33%
Revenue Next 2Y-11.96%
Revenue Next 3Y-5.95%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.91, the valuation of IDCC can be described as rather expensive.
70.00% of the companies in the same industry are more expensive than IDCC, based on the Price/Earnings ratio.
IDCC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.54.
With a Price/Forward Earnings ratio of 53.33, IDCC can be considered very expensive at the moment.
IDCC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of IDCC to the average of the S&P500 Index (23.78), we can say IDCC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 53.33 |
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 86.07% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued cheaper than 86.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.45 | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
The excellent profitability rating of IDCC may justify a higher PE ratio.
IDCC's earnings are expected to decrease with -11.88% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
5. Dividend
5.1 Amount
IDCC has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 36.93, IDCC pays a better dividend. On top of this IDCC pays more dividend than 91.07% of the companies listed in the same industry.
With a Dividend Yield of 0.80, IDCC pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 their dividend for at least 10 years, which is a reliable track record.
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-25.72%
EPS Next 3Y-11.88%
354.28
-3.66 (-1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.27%
Inst Owner Change3.7%
Ins Owners1.27%
Ins Owner Change-1.11%
Market Cap9.12B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (7.99%)
Short Float %12.68%
Short Ratio8.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)13.49%
PT rev (3m)44.99%
EPS NQ rev (1m)-3.22%
EPS NQ rev (3m)-28.98%
EPS NY rev (1m)-1.14%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.87%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 53.33 | ||
| P/S | 9.82 | ||
| P/FCF | 15.45 | ||
| P/OCF | 13.55 | ||
| P/B | 8.29 | ||
| P/tB | 11.94 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)14.82
EY4.18%
EPS(NY)6.64
Fwd EY1.88%
FCF(TTM)22.93
FCFY6.47%
OCF(TTM)26.15
OCFY7.38%
SpS36.08
BVpS42.73
TBVpS29.66
PEG (NY)N/A
PEG (5Y)0.3
Graham Number119.37
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 | 8.4 |
F-Score9
WACC10.8%
ROIC/WACC3.41
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-1.45%
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
EPS Next 5YN/A
Revenue 1Y (TTM)28.75%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%27.98%
Revenue Next Year-3.33%
Revenue Next 2Y-11.96%
Revenue Next 3Y-5.95%
Revenue Next 5YN/A
EBIT growth 1Y90.4%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year30.45%
EBIT Next 3Y-3.41%
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 -1.45% 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%.