308.76 USD
-1.67 (-0.54%)
308.76 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to IDCC. IDCC was compared to 276 industry peers in the Software industry. Both the health and profitability get an excellent rating, making IDCC a very profitable company, without any liquidiy or solvency issues. IDCC has a decent growth rate and is not valued too expensively. This makes IDCC very considerable 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.
- In the past 5 years IDCC always reported a positive cash flow from operatings.
1.2 Ratios
- IDCC has a better Return On Assets (23.22%) than 96.74% of its industry peers.
- With an excellent Return On Equity value of 45.16%, IDCC belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
- The Return On Invested Capital of IDCC (36.86%) is better than 98.19% 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 10.78%.
- 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 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 has a better Profit Margin (53.50%) than 93.84% of its industry peers.
- In the last couple of years the Profit Margin of IDCC has grown nicely.
- Looking at the Operating Margin, with a value of 61.99%, IDCC belongs to the top of the industry, outperforming 97.46% of the companies in the same industry.
- 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.
- The number of shares outstanding for IDCC has been increased compared to 1 year ago.
- Compared to 5 years ago, IDCC has less shares outstanding
- IDCC has a better debt/assets ratio than last year.
2.2 Solvency
- IDCC has an Altman-Z score of 7.69. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
- IDCC has a Altman-Z score of 7.69. This is amongst the best in the industry. IDCC outperforms 83.33% 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.
- The Debt to FCF ratio of IDCC (0.80) is better than 76.45% 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.
- Looking at the Debt to Equity ratio, with a value of 0.02, IDCC is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 7.69 |
ROIC/WACC3.38
WACC10.92%
2.3 Liquidity
- A Current Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
- IDCC's Current ratio of 1.89 is in line compared to the rest of the industry. IDCC outperforms 57.25% of its industry peers.
- 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.
- IDCC has a Quick ratio of 1.89. This is comparable to the rest of the industry: IDCC outperforms 57.61% 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
- The Earnings Per Share has grown by an impressive 58.33% over the past year.
- The Earnings Per Share has been growing by 78.74% on average over the past years. This is a very strong growth
- 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
- The Earnings Per Share is expected to decrease by -11.88% on average over the next years. This is quite bad
- 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.
- 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
- With a Price/Earnings ratio of 20.83, IDCC is valued on the expensive side.
- Based on the Price/Earnings ratio, IDCC is valued a bit cheaper than the industry average as 73.19% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, IDCC is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 46.48, IDCC can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as IDCC.
- IDCC is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 46.48 |
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 87.32% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, IDCC is valued cheaply inside the industry as 86.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.46 | ||
| EV/EBITDA | 10.41 |
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)0.26
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
5. Dividend
5.1 Amount
- IDCC has a yearly dividend return of 0.90%, which is pretty low.
- IDCC's Dividend Yield is rather good when compared to the industry average which is at 0.52. IDCC pays more dividend than 92.03% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
5.3 Sustainability
- 10.87% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
DP10.87%
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
308.76
-1.67 (-0.54%)
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 Change1.4%
Ins Owners1.26%
Ins Owner Change-3.77%
Market Cap7.95B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (23.92%)
Short Float %11.89%
Short Ratio9.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)21.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 46.48 | ||
| P/S | 8.56 | ||
| P/FCF | 13.46 | ||
| P/OCF | 11.81 | ||
| P/B | 7.23 | ||
| P/tB | 10.41 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)14.82
EY4.8%
EPS(NY)6.64
Fwd EY2.15%
FCF(TTM)22.93
FCFY7.43%
OCF(TTM)26.15
OCFY8.47%
SpS36.08
BVpS42.73
TBVpS29.66
PEG (NY)N/A
PEG (5Y)0.26
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 | 7.69 |
F-Score9
WACC10.92%
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)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.
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%.