311.65 USD
-12.26 (-3.79%)
Last: Feb 4, 2026, 01:37 PM
Taking everything into account, IDCC scores 7 out of 10 in our fundamental rating. IDCC was compared to 278 industry peers in the Software industry. IDCC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
- 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.
- 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 97.12% 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 95.32% of its industry peers.
- IDCC has a better Return On Invested Capital (36.86%) than 98.20% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for IDCC is significantly above the industry average of 10.74%.
- 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
- With an excellent Profit Margin value of 53.50%, IDCC belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
- IDCC's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 61.99%, IDCC belongs to the best of the industry, outperforming 97.48% of the companies in the same industry.
- 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.
- Compared to 1 year ago, IDCC has more shares outstanding
- Compared to 5 years ago, IDCC has less shares outstanding
- Compared to 1 year ago, IDCC has an improved debt to assets ratio.
2.2 Solvency
- IDCC has an Altman-Z score of 7.89. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
- IDCC has a Altman-Z score of 7.89. This is amongst the best in the industry. IDCC outperforms 87.41% 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 has a better Debt to FCF ratio (0.80) than 76.62% of its industry peers.
- A Debt/Equity ratio of 0.02 indicates that IDCC is not too dependend on debt financing.
- IDCC has a better Debt to Equity ratio (0.02) than 63.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 7.89 |
ROIC/WACC3.35
WACC11.01%
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 57.19% 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 57.55% 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.
- IDCC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 78.74% yearly.
- Looking at the last year, IDCC shows a very strong growth in Revenue. 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
- The Earnings Per Share is expected to decrease by -11.88% on average over the next years. This is quite bad
- IDCC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.23% yearly.
EPS Next Y-1.45%
EPS Next 2Y-27.18%
EPS Next 3Y-11.88%
EPS Next 5YN/A
Revenue Next Year-3.9%
Revenue Next 2Y-10.41%
Revenue Next 3Y-5.23%
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
- Based on the Price/Earnings ratio of 21.03, the valuation of IDCC can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of IDCC indicates a somewhat cheap valuation: IDCC is cheaper than 67.63% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of IDCC to the average of the S&P500 Index (28.18), we can say IDCC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 48.81, which means the current valuation is very expensive for IDCC.
- 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 (25.51), we can say IDCC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.03 | ||
| Fwd PE | 48.81 |
4.2 Price Multiples
- 85.25% of the companies in the same industry are more expensive than IDCC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of IDCC indicates a rather cheap valuation: IDCC is cheaper than 84.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.59 | ||
| EV/EBITDA | 10.95 |
4.3 Compensation for Growth
- IDCC has an outstanding profitability rating, which 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)0.27
EPS Next 2Y-27.18%
EPS Next 3Y-11.88%
5. Dividend
5.1 Amount
- IDCC has a yearly dividend return of 0.85%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.56, IDCC pays a better dividend. On top of this IDCC pays more dividend than 90.65% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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-27.18%
EPS Next 3Y-11.88%
NASDAQ:IDCC (2/4/2026, 1:37:38 PM)
311.65
-12.26 (-3.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-05 2026-02-05/bmo
Inst Owners105.44%
Inst Owner Change0.38%
Ins Owners1.26%
Ins Owner Change-5.4%
Market Cap8.02B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (22.77%)
Short Float %12.44%
Short Ratio11.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.87%
Div Incr Years2
Div Non Decr Years11
Ex-Date01-14 2026-01-14 (0.7)
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)0%
PT rev (3m)13.49%
EPS NQ rev (1m)-11.6%
EPS NQ rev (3m)-32.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.25%
Revenue NQ rev (1m)-3.2%
Revenue NQ rev (3m)-7.74%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.03 | ||
| Fwd PE | 48.81 | ||
| P/S | 8.64 | ||
| P/FCF | 13.59 | ||
| P/OCF | 11.92 | ||
| P/B | 7.29 | ||
| P/tB | 10.51 | ||
| EV/EBITDA | 10.95 |
EPS(TTM)14.82
EY4.76%
EPS(NY)6.39
Fwd EY2.05%
FCF(TTM)22.93
FCFY7.36%
OCF(TTM)26.15
OCFY8.39%
SpS36.08
BVpS42.73
TBVpS29.66
PEG (NY)N/A
PEG (5Y)0.27
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 | 7.89 |
F-Score9
WACC11.01%
ROIC/WACC3.35
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-27.18%
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-3.9%
Revenue Next 2Y-10.41%
Revenue Next 3Y-5.23%
Revenue Next 5YN/A
EBIT growth 1Y90.4%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year30.45%
EBIT Next 3Y-0.09%
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.
Can you provide the valuation status for INTERDIGITAL INC?
ChartMill assigns a valuation rating of 5 / 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.
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 5 / 10 and the dividend payout ratio is 10.87%.