INTERDIGITAL INC (IDCC) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:IDCC • US45867G1013

371.08 USD
+26.03 (+7.54%)
At close: Feb 6, 2026
370.8 USD
-0.28 (-0.08%)
After Hours: 2/6/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to IDCC. IDCC was compared to 278 industry peers in the Software industry. IDCC gets an excellent profitability rating and is at the same time showing great financial health properties. IDCC is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year IDCC was profitable.
  • IDCC had a positive operating cash flow in the past year.
  • IDCC had positive earnings in 4 of the past 5 years.
  • IDCC had a positive operating cash flow in 4 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 100M 200M 300M 400M

1.2 Ratios

  • With an excellent Return On Assets value of 23.22%, IDCC belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
  • IDCC's Return On Equity of 45.16% is amongst the best of the industry. IDCC outperforms 95.32% of its industry peers.
  • The Return On Invested Capital of IDCC (36.86%) is better than 98.20% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 10.78%.
  • 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 RankSector 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%
IDCC Yearly ROA, ROE, ROICIDCC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • IDCC's Profit Margin of 53.50% is amongst the best of the industry. IDCC outperforms 93.88% of its industry peers.
  • In the last couple of years the Profit Margin of IDCC has grown nicely.
  • IDCC has a better Operating Margin (61.99%) than 97.48% of its industry peers.
  • IDCC's Operating Margin has improved in the last couple of years.
Industry RankSector 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
IDCC Yearly Profit, Operating, Gross MarginsIDCC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
IDCC Yearly Shares OutstandingIDCC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 500M 1B 1.5B

2.2 Solvency

  • IDCC has an Altman-Z score of 8.21. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of IDCC (8.21) is better than 89.57% of its industry peers.
  • IDCC has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
  • The Debt to FCF ratio of IDCC (0.80) is better than 76.62% 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.
  • IDCC has a better Debt to Equity ratio (0.02) than 63.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.02
Debt/FCF 0.8
Altman-Z 8.21
ROIC/WACC3.38
WACC10.89%
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 200M 400M 600M 800M

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 (1.89) which is comparable to the rest of the industry.
  • IDCC has a Quick 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 Quick ratio value of 1.89, IDCC perfoms like the industry average, outperforming 57.19% 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 RankSector Rank
Current Ratio 1.89
Quick Ratio 1.89
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 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. Growth

3.1 Past

  • IDCC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.73%.
  • IDCC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.92% yearly.
EPS 1Y (TTM)6.73%
EPS 3Y54.42%
EPS 5Y54.92%
EPS Q2Q%-48.17%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-37.41%

3.2 Future

  • The Earnings Per Share is expected to decrease by -17.89% on average over the next years. This is quite bad
  • The Revenue is expected to decrease by -5.59% on average over the next years.
EPS Next Y-46.34%
EPS Next 2Y-17.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-16.14%
Revenue Next 2Y-5.59%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 200M 400M 600M 800M
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 2 4 6 8 10

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 28.88, IDCC can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, IDCC is valued a bit cheaper than 60.43% of the companies in the same industry.
  • IDCC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.92.
  • The Price/Forward Earnings ratio is 53.82, which means the current valuation is very expensive for IDCC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of IDCC is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. IDCC is valued rather expensively when compared to this.
Industry RankSector Rank
PE 28.88
Fwd PE 53.82
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IDCC indicates a rather cheap valuation: IDCC is cheaper than 84.17% of the companies listed in the same industry.
  • 81.30% of the companies in the same industry are more expensive than IDCC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.18
EV/EBITDA 11.78
IDCC Per share dataIDCC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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 -17.89% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-17.89%
EPS Next 3YN/A

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

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.81%, IDCC is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.57, IDCC pays a better dividend. On top of this IDCC pays more dividend than 91.01% of the companies listed in the same industry.
  • With a Dividend Yield of 0.81, IDCC pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 0.81%

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 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
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

  • IDCC pays out 10.87% of its income as dividend. This is a sustainable payout ratio.
DP10.87%
EPS Next 2Y-17.89%
EPS Next 3YN/A
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 100M 200M 300M
IDCC Dividend Payout.IDCC Dividend Payout, showing the Payout Ratio.IDCC Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

INTERDIGITAL INC

NASDAQ:IDCC (2/6/2026, 8:00:01 PM)

After market: 370.8 -0.28 (-0.08%)

371.08

+26.03 (+7.54%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners105.44%
Inst Owner Change0.38%
Ins Owners1.26%
Ins Owner Change-5.4%
Market Cap9.55B
Revenue(TTM)N/A
Net Income(TTM)496.78M
Analysts83.33
Price Target411.95 (11.01%)
Short Float %12.44%
Short Ratio11.64
Dividend
Industry RankSector Rank
Dividend Yield 0.81%
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.87%
Div Incr Years2
Div Non Decr Years11
Ex-Date01-14
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 RankSector Rank
PE 28.88
Fwd PE 53.82
P/S 10.29
P/FCF 16.18
P/OCF 14.19
P/B 8.68
P/tB 12.51
EV/EBITDA 11.78
EPS(TTM)12.85
EY3.46%
EPS(NY)6.9
Fwd EY1.86%
FCF(TTM)22.93
FCFY6.18%
OCF(TTM)26.15
OCFY7.05%
SpS36.08
BVpS42.73
TBVpS29.66
PEG (NY)N/A
PEG (5Y)0.53
Graham Number111.16
Profitability
Industry RankSector 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 RankSector 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 8.21
F-Score9
WACC10.89%
ROIC/WACC3.38
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)6.73%
EPS 3Y54.42%
EPS 5Y54.92%
EPS Q2Q%-48.17%
EPS Next Y-46.34%
EPS Next 2Y-17.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-37.41%
Revenue Next Year-16.14%
Revenue Next 2Y-5.59%
Revenue Next 3YN/A
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 6 / 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 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%.