INTERDIGITAL INC (IDCC) Fundamental Analysis & Valuation

NASDAQ:IDCC • US45867G1013

Current stock price

290.5 USD
-6.06 (-2.04%)
At close:
283.66 USD
-6.84 (-2.35%)
After Hours:

This IDCC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. IDCC Profitability Analysis

1.1 Basic Checks

  • IDCC had positive earnings in the past year.
  • IDCC had a positive operating cash flow in the past year.
  • IDCC had positive earnings in each of the past 5 years.
  • Each year in the past 5 years IDCC had a positive operating cash flow.
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 2025 100M 200M 300M 400M 500M

1.2 Ratios

  • The Return On Assets of IDCC (19.70%) is better than 95.22% of its industry peers.
  • The Return On Equity of IDCC (36.93%) is better than 93.38% of its industry peers.
  • IDCC's Return On Invested Capital of 29.89% is amongst the best of the industry. IDCC outperforms 97.43% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 11.04%.
  • The 3 year average ROIC (28.26%) for IDCC is below the current ROIC(29.89%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 19.7%
ROE 36.93%
ROIC 29.89%
ROA(3y)17.11%
ROA(5y)11.93%
ROE(3y)38.53%
ROE(5y)27.18%
ROIC(3y)28.26%
ROIC(5y)19.9%
IDCC Yearly ROA, ROE, ROICIDCC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • The Profit Margin of IDCC (48.76%) is better than 97.06% of its industry peers.
  • IDCC's Profit Margin has improved in the last couple of years.
  • The Operating Margin of IDCC (55.26%) is better than 99.26% of its industry peers.
  • IDCC's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 88.77%, IDCC belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
Industry RankSector Rank
OM 55.26%
PM (TTM) 48.76%
GM 88.77%
OM growth 3Y18.04%
OM growth 5Y29.15%
PM growth 3Y33.55%
PM growth 5Y31.33%
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 2025 20 40 60 80

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8

2. IDCC Health Analysis

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 about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for IDCC has been reduced compared to 5 years ago.
  • The debt/assets ratio for IDCC has been reduced compared to a year ago.
IDCC Yearly Shares OutstandingIDCC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 7.59 indicates that IDCC is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 7.59, IDCC belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
  • IDCC has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
  • The Debt to FCF ratio of IDCC (1.00) is better than 73.90% of its industry peers.
  • IDCC has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of IDCC (0.01) is better than 61.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 1
Altman-Z 7.59
ROIC/WACC2.77
WACC10.77%
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 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • IDCC has a Current Ratio of 1.84. This is a normal value and indicates that IDCC is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of IDCC (1.84) is comparable to the rest of the industry.
  • A Quick Ratio of 1.84 indicates that IDCC should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.84, IDCC perfoms like the industry average, outperforming 54.41% 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 1.84
Quick Ratio 1.84
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 2025 200M 400M 600M 800M 1B

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

4

3. IDCC Growth Analysis

3.1 Past

  • The earnings per share for IDCC have decreased strongly by -12.37% in the last year.
  • The Earnings Per Share has been growing by 52.64% on average over the past years. This is a very strong growth
  • Looking at the last year, IDCC shows a decrease in Revenue. The Revenue has decreased by -3.97% in the last year.
  • Measured over the past years, IDCC shows a quite strong growth in Revenue. The Revenue has been growing by 18.36% on average per year.
EPS 1Y (TTM)-12.37%
EPS 3Y50.64%
EPS 5Y52.64%
EPS Q2Q%-25.51%
Revenue 1Y (TTM)-3.97%
Revenue growth 3Y22.13%
Revenue growth 5Y18.36%
Sales Q2Q%-2.42%

3.2 Future

  • IDCC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.43% yearly.
  • IDCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.43% yearly.
EPS Next Y-39.98%
EPS Next 2Y-11.32%
EPS Next 3Y7.43%
EPS Next 5YN/A
Revenue Next Year-14.73%
Revenue Next 2Y-6.11%
Revenue Next 3Y7.43%
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.
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 2028 200M 400M 600M 800M 1B
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 2028 5 10

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4

4. IDCC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.29 indicates a quite expensive valuation of IDCC.
  • IDCC's Price/Earnings ratio is a bit cheaper when compared to the industry. IDCC is cheaper than 61.03% of the companies in the same industry.
  • IDCC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.64.
  • IDCC is valuated quite expensively with a Price/Forward Earnings ratio of 30.97.
  • IDCC's Price/Forward Earnings is on the same level as the industry average.
  • IDCC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.29
Fwd PE 30.97
IDCC Price Earnings VS Forward Price EarningsIDCC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • IDCC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IDCC is cheaper than 86.03% of the companies in the same industry.
  • IDCC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IDCC is cheaper than 80.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.75
EV/EBITDA 11.5
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.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-11.32%
EPS Next 3Y7.43%

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

6

5. IDCC Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.94%, IDCC is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.68, IDCC pays a better dividend. On top of this IDCC pays more dividend than 91.91% of the companies listed in the same industry.
  • With a Dividend Yield of 0.94, IDCC pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.94%

5.2 History

  • The dividend of IDCC is nicely growing with an annual growth rate of 11.01%!
  • IDCC has paid a dividend for at least 10 years, which is a reliable track record.
  • IDCC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.01%
Div Incr Years3
Div Non Decr Years12
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 14.92% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of IDCC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.92%
EPS Next 2Y-11.32%
EPS Next 3Y7.43%
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 2025 100M 200M 300M 400M
IDCC Dividend Payout.IDCC Dividend Payout, showing the Payout Ratio.IDCC Dividend Payout.PayoutRetained Earnings

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IDCC Fundamentals: All Metrics, Ratios and Statistics

INTERDIGITAL INC

NASDAQ:IDCC (5/1/2026, 8:00:02 PM)

After market: 283.66 -6.84 (-2.35%)

290.5

-6.06 (-2.04%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength8.7
Industry Growth62.73
Earnings (Last)04-30
Earnings (Next)07-29
Inst Owners106.24%
Inst Owner Change-1.23%
Ins Owners1.26%
Ins Owner Change-0.29%
Market Cap7.46B
Revenue(TTM)834.01M
Net Income(TTM)406.64M
Analysts87.27
Price Target411.95 (41.81%)
Short Float %8.84%
Short Ratio5.56
Dividend
Industry RankSector Rank
Dividend Yield 0.94%
Yearly Dividend2.36
Dividend Growth(5Y)11.01%
DP14.92%
Div Incr Years3
Div Non Decr Years12
Ex-Date04-08
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.86%
Min EPS beat(2)18.04%
Max EPS beat(2)23.67%
EPS beat(4)4
Avg EPS beat(4)36.53%
Min EPS beat(4)13.22%
Max EPS beat(4)91.19%
EPS beat(8)7
Avg EPS beat(8)198.3%
EPS beat(12)11
Avg EPS beat(12)189.84%
EPS beat(16)14
Avg EPS beat(16)153.17%
Revenue beat(2)2
Avg Revenue beat(2)4.14%
Min Revenue beat(2)3.01%
Max Revenue beat(2)5.28%
Revenue beat(4)4
Avg Revenue beat(4)20.54%
Min Revenue beat(4)0.55%
Max Revenue beat(4)73.32%
Revenue beat(8)8
Avg Revenue beat(8)29.77%
Revenue beat(12)10
Avg Revenue beat(12)30.82%
Revenue beat(16)14
Avg Revenue beat(16)23.71%
PT rev (1m)0%
PT rev (3m)7.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.71%
EPS NY rev (1m)0%
EPS NY rev (3m)12.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)26.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.09%
Valuation
Industry RankSector Rank
PE 26.29
Fwd PE 30.97
P/S 8.95
P/FCF 15.75
P/OCF 13.71
P/B 6.78
P/tB 9.84
EV/EBITDA 11.5
EPS(TTM)11.05
EY3.8%
EPS(NY)9.38
Fwd EY3.23%
FCF(TTM)18.45
FCFY6.35%
OCF(TTM)21.19
OCFY7.3%
SpS32.46
BVpS42.86
TBVpS29.52
PEG (NY)N/A
PEG (5Y)0.5
Graham Number103.23 (-64.46%)
Profitability
Industry RankSector Rank
ROA 19.7%
ROE 36.93%
ROCE 35.13%
ROIC 29.89%
ROICexc 571.25%
ROICexgc N/A
OM 55.26%
PM (TTM) 48.76%
GM 88.77%
FCFM 56.83%
ROA(3y)17.11%
ROA(5y)11.93%
ROE(3y)38.53%
ROE(5y)27.18%
ROIC(3y)28.26%
ROIC(5y)19.9%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)33.22%
ROCE(5y)23.4%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y165.16%
ROICexc growth 5Y116.81%
OM growth 3Y18.04%
OM growth 5Y29.15%
PM growth 3Y33.55%
PM growth 5Y31.33%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 1
Debt/EBITDA 0.03
Cap/Depr 90.95%
Cap/Sales 8.45%
Interest Coverage 28.62
Cash Conversion 101.13%
Profit Quality 116.55%
Current Ratio 1.84
Quick Ratio 1.84
Altman-Z 7.59
F-Score8
WACC10.77%
ROIC/WACC2.77
Cap/Depr(3y)79.47%
Cap/Depr(5y)68.37%
Cap/Sales(3y)7.94%
Cap/Sales(5y)8.44%
Profit Quality(3y)84.57%
Profit Quality(5y)135.96%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.37%
EPS 3Y50.64%
EPS 5Y52.64%
EPS Q2Q%-25.51%
EPS Next Y-39.98%
EPS Next 2Y-11.32%
EPS Next 3Y7.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.97%
Revenue growth 3Y22.13%
Revenue growth 5Y18.36%
Sales Q2Q%-2.42%
Revenue Next Year-14.73%
Revenue Next 2Y-6.11%
Revenue Next 3Y7.43%
Revenue Next 5YN/A
EBIT growth 1Y4.86%
EBIT growth 3Y44.17%
EBIT growth 5Y52.87%
EBIT Next Year-12.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y127.26%
FCF growth 3Y24.91%
FCF growth 5Y31.38%
OCF growth 1Y100.51%
OCF growth 3Y23.94%
OCF growth 5Y27.2%

INTERDIGITAL INC / IDCC Fundamental Analysis 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 4 / 10 to INTERDIGITAL INC (IDCC). This can be considered as Fairly Valued.


How profitable is INTERDIGITAL INC (IDCC) stock?

INTERDIGITAL INC (IDCC) has a profitability rating of 9 / 10.


What is the expected EPS growth for INTERDIGITAL INC (IDCC) stock?

The Earnings per Share (EPS) of INTERDIGITAL INC (IDCC) is expected to decline by -39.98% in the next year.


Can you provide the dividend sustainability for IDCC stock?

The dividend rating of INTERDIGITAL INC (IDCC) is 6 / 10 and the dividend payout ratio is 14.92%.