INTERDIGITAL INC (IDCC)
US45867G1013 - Common Stock
Overall IDCC gets a fundamental rating of 6 out of 10. We evaluated IDCC against 280 industry peers in the Software industry. While IDCC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IDCC is not valued too expensively and it also shows a decent growth rate.
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.
IDCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IDCC (15.34%) is better than 92.11% of its industry peers.
IDCC has a better Return On Equity (36.62%) than 93.55% of its industry peers.
The Return On Invested Capital of IDCC (25.09%) is better than 95.70% of its industry peers.
IDCC had an Average Return On Invested Capital over the past 3 years of 11.85%. This is in line with the industry average of 12.22%.
The last Return On Invested Capital (25.09%) for IDCC is above the 3 year average (11.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.34% | ||
| ROE | 36.62% | ||
| ROIC | 25.1% |
ROA(3y)6.81%
ROA(5y)4.9%
ROE(3y)19.05%
ROE(5y)13.14%
ROIC(3y)11.85%
ROIC(5y)8.3%
1.3 Margins
IDCC has a better Profit Margin (36.69%) than 96.77% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 41.92%, IDCC belongs to the best of the industry, outperforming 97.85% 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 | 41.92% | ||
| PM (TTM) | 36.69% | ||
| GM | N/A |
OM growth 3Y37.9%
OM growth 5Y14.64%
PM growth 3Y46.14%
PM growth 5Y13%
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 less shares outstanding
The number of shares outstanding for IDCC has been reduced compared to 5 years ago.
Compared to 1 year ago, IDCC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.56 indicates that IDCC is not in any danger for bankruptcy at the moment.
IDCC's Altman-Z score of 5.56 is fine compared to the rest of the industry. IDCC outperforms 64.87% of its industry peers.
IDCC has a debt to FCF ratio of 66.87. This is a negative value and a sign of low solvency as IDCC would need 66.87 years to pay back of all of its debts.
IDCC has a Debt to FCF ratio (66.87) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.03 indicates that IDCC is not too dependend on debt financing.
IDCC has a better Debt to Equity ratio (0.03) than 60.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 66.87 | ||
| Altman-Z | 5.56 |
ROIC/WACC2.17
WACC11.56%
2.3 Liquidity
A Current Ratio of 1.62 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Current ratio (1.62) which is in line with its industry peers.
A Quick Ratio of 1.62 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Quick ratio (1.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
IDCC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.54%, which is quite impressive.
The Earnings Per Share has been growing by 34.56% on average over the past years. This is a very strong growth
The Revenue has grown by 28.52% in the past year. This is a very strong growth!
Measured over the past years, IDCC shows a quite strong growth in Revenue. The Revenue has been growing by 12.32% on average per year.
EPS 1Y (TTM)30.54%
EPS 3Y73.34%
EPS 5Y34.56%
EPS Q2Q%-33.72%
Revenue 1Y (TTM)28.52%
Revenue growth 3Y15.25%
Revenue growth 5Y12.32%
Sales Q2Q%-8.16%
3.2 Future
The Earnings Per Share is expected to grow by 8.95% on average over the next years. This is quite good.
IDCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y67.14%
EPS Next 2Y-18.93%
EPS Next 3Y-8.93%
EPS Next 5Y8.95%
Revenue Next Year56.72%
Revenue Next 2Y-1.44%
Revenue Next 3Y0.31%
Revenue Next 5Y4.05%
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
A Price/Earnings ratio of 20.62 indicates a rather expensive valuation of IDCC.
Compared to the rest of the industry, the Price/Earnings ratio of IDCC indicates a rather cheap valuation: IDCC is cheaper than 82.44% of the companies listed in the same industry.
IDCC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.54.
The Price/Forward Earnings ratio is 39.15, which means the current valuation is very expensive for IDCC.
IDCC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IDCC is cheaper than 62.72% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IDCC to the average of the S&P500 Index (23.99), we can say IDCC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.62 | ||
| Fwd PE | 39.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaply inside the industry as 92.47% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as IDCC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 691.89 | ||
| EV/EBITDA | 11.01 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IDCC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as IDCC's earnings are expected to decrease with -8.93% in the coming years.
PEG (NY)0.31
PEG (5Y)0.6
EPS Next 2Y-18.93%
EPS Next 3Y-8.93%
5. Dividend
5.1 Amount
IDCC has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 13.95, IDCC pays a better dividend. On top of this IDCC pays more dividend than 93.19% of the companies listed in the same industry.
With a Dividend Yield of 0.95, IDCC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of IDCC has a limited annual growth rate of 0.04%.
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)0.04%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
15.41% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
IDCC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.41%
EPS Next 2Y-18.93%
EPS Next 3Y-8.93%
INTERDIGITAL INC
NASDAQ:IDCC (12/26/2024, 2:34:14 PM)
192.96
+0.87 (+0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners107.01%
Inst Owner Change1.94%
Ins Owners1.21%
Ins Owner Change-0.1%
Market Cap4.89B
Analysts80
Price Target156.06 (-19.12%)
Short Float %11.11%
Short Ratio7.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)0.04%
DP15.41%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)720.18%
Min EPS beat(2)365.69%
Max EPS beat(2)1074.68%
EPS beat(4)4
Avg EPS beat(4)374.59%
Min EPS beat(4)2.67%
Max EPS beat(4)1074.68%
EPS beat(8)8
Avg EPS beat(8)272.38%
EPS beat(12)11
Avg EPS beat(12)200.76%
EPS beat(16)15
Avg EPS beat(16)515.96%
Revenue beat(2)2
Avg Revenue beat(2)75.65%
Min Revenue beat(2)31.48%
Max Revenue beat(2)119.82%
Revenue beat(4)3
Avg Revenue beat(4)38.35%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)119.82%
Revenue beat(8)6
Avg Revenue beat(8)36.33%
Revenue beat(12)10
Avg Revenue beat(12)25.31%
Revenue beat(16)14
Avg Revenue beat(16)20.26%
PT rev (1m)6.25%
PT rev (3m)15.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)171.22%
EPS NY rev (1m)0%
EPS NY rev (3m)54.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)62.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)19.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.62 | ||
| Fwd PE | 39.15 | ||
| P/S | 6.78 | ||
| P/FCF | 691.89 | ||
| P/OCF | 87.43 | ||
| P/B | 6.77 | ||
| P/tB | 12.21 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)9.36
EY4.85%
EPS(NY)4.93
Fwd EY2.55%
FCF(TTM)0.28
FCFY0.14%
OCF(TTM)2.21
OCFY1.14%
SpS28.46
BVpS28.51
TBVpS15.81
PEG (NY)0.31
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.34% | ||
| ROE | 36.62% | ||
| ROCE | 29.83% | ||
| ROIC | 25.1% | ||
| ROICexc | 126.95% | ||
| ROICexgc | N/A | ||
| OM | 41.92% | ||
| PM (TTM) | 36.69% | ||
| GM | N/A | ||
| FCFM | 0.98% |
ROA(3y)6.81%
ROA(5y)4.9%
ROE(3y)19.05%
ROE(5y)13.14%
ROIC(3y)11.85%
ROIC(5y)8.3%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.08%
ROCE(5y)9.86%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y37.9%
OM growth 5Y14.64%
PM growth 3Y46.14%
PM growth 5Y13%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 66.87 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 68.57% | ||
| Cap/Sales | 6.77% | ||
| Interest Coverage | 16.22 | ||
| Cash Conversion | 14.97% | ||
| Profit Quality | 2.67% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 5.56 |
F-Score6
WACC11.56%
ROIC/WACC2.17
Cap/Depr(3y)53.6%
Cap/Depr(5y)52.49%
Cap/Sales(3y)8.82%
Cap/Sales(5y)10.04%
Profit Quality(3y)168.37%
Profit Quality(5y)204.27%
High Growth Momentum
Growth
EPS 1Y (TTM)30.54%
EPS 3Y73.34%
EPS 5Y34.56%
EPS Q2Q%-33.72%
EPS Next Y67.14%
EPS Next 2Y-18.93%
EPS Next 3Y-8.93%
EPS Next 5Y8.95%
Revenue 1Y (TTM)28.52%
Revenue growth 3Y15.25%
Revenue growth 5Y12.32%
Sales Q2Q%-8.16%
Revenue Next Year56.72%
Revenue Next 2Y-1.44%
Revenue Next 3Y0.31%
Revenue Next 5Y4.05%
EBIT growth 1Y28.64%
EBIT growth 3Y58.94%
EBIT growth 5Y28.77%
EBIT Next Year145.48%
EBIT Next 3Y9.38%
EBIT Next 5YN/A
FCF growth 1Y118.26%
FCF growth 3Y11.77%
FCF growth 5Y9%
OCF growth 1Y7889.57%
OCF growth 3Y9.34%
OCF growth 5Y7.8%