INTERDIGITAL INC (IDCC) Stock Fundamental Analysis

NASDAQ:IDCC • US45867G1013

366.42 USD
-8.59 (-2.29%)
At close: Feb 17, 2026
366.47 USD
+0.05 (+0.01%)
After Hours: 2/17/2026, 8:23:05 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall IDCC gets a fundamental rating of 7 out of 10. We evaluated IDCC against 276 industry peers in the Software industry. IDCC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. IDCC has a decent growth rate and is not valued too expensively. Finally IDCC also has an excellent dividend rating. This makes IDCC very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year IDCC was profitable.
  • In the past year IDCC had a positive cash flow from operations.
  • Each year in the past 5 years IDCC has been profitable.
  • IDCC had a positive operating cash flow in each 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 2025 100M 200M 300M 400M 500M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 19.70%, IDCC belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
  • The Return On Equity of IDCC (36.93%) is better than 93.84% of its industry peers.
  • With an excellent Return On Invested Capital value of 29.89%, IDCC belongs to the best of the industry, outperforming 97.46% of the companies in the same industry.
  • IDCC had an Average Return On Invested Capital over the past 3 years of 28.26%. This is significantly above the industry average of 10.64%.
  • The last Return On Invested Capital (29.89%) for IDCC is above the 3 year average (28.26%), which is a sign of increasing profitability.
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

  • IDCC has a Profit Margin of 48.76%. This is amongst the best in the industry. IDCC outperforms 93.48% of its industry peers.
  • In the last couple of years the Profit Margin of IDCC has grown nicely.
  • With an excellent Operating Margin value of 55.26%, IDCC belongs to the best of the industry, outperforming 97.46% of the companies in the same industry.
  • In the last couple of years the Operating Margin of IDCC has grown nicely.
  • IDCC has a Gross Margin of 88.77%. This is amongst the best in the industry. IDCC outperforms 94.93% of its industry peers.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • 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

  • IDCC has an Altman-Z score of 8.94. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.94, IDCC belongs to the best of the industry, outperforming 90.94% 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 74.64% of its industry peers.
  • A Debt/Equity ratio of 0.01 indicates that IDCC is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.01, IDCC is doing good in the industry, outperforming 62.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 1
Altman-Z 8.94
ROIC/WACC2.75
WACC10.87%
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.
  • IDCC has a Current ratio (1.84) which is comparable to the rest of the industry.
  • IDCC has a Quick 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.
  • IDCC has a Quick ratio (1.84) which is comparable to the rest of the 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. Growth

3.1 Past

  • IDCC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.91%.
  • Measured over the past years, IDCC shows a very strong growth in Earnings Per Share. The EPS has been growing by 52.64% on average per year.
  • Looking at the last year, IDCC shows a decrease in Revenue. The Revenue has decreased by -3.97% in the last year.
  • IDCC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.36% yearly.
EPS 1Y (TTM)-0.91%
EPS 3Y50.64%
EPS 5Y52.64%
EPS Q2Q%-70.66%
Revenue 1Y (TTM)-3.97%
Revenue growth 3Y22.13%
Revenue growth 5Y18.36%
Sales Q2Q%-37.41%

3.2 Future

  • The Earnings Per Share is expected to grow by 17.64% 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 7.43% yearly.
EPS Next Y-42.2%
EPS Next 2Y-14.78%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue Next Year-16.14%
Revenue Next 2Y-5.59%
Revenue Next 3Y7.43%
Revenue Next 5YN/A

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
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 15

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 30.71 indicates a quite expensive valuation of IDCC.
  • IDCC's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.16. IDCC is around the same levels.
  • The Price/Forward Earnings ratio is 53.14, 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 (28.10), we can say IDCC is valued expensively.
Industry RankSector Rank
PE 30.71
Fwd PE 53.14
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

  • Based on the Enterprise Value to EBITDA ratio, IDCC is valued a bit cheaper than 79.71% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, IDCC is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.86
EV/EBITDA 15.53
IDCC Per share dataIDCC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The excellent profitability rating of IDCC may justify a higher PE ratio.
  • IDCC's earnings are expected to grow with 17.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-14.78%
EPS Next 3Y17.64%

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

7

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.78%, IDCC is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.60, IDCC pays a better dividend. On top of this IDCC pays more dividend than 89.86% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, IDCC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.78%

5.2 History

  • On average, the dividend of IDCC grows each year by 11.01%, which is quite nice.
  • 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 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

  • 14.92% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
  • The dividend of IDCC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.92%
EPS Next 2Y-14.78%
EPS Next 3Y17.64%
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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Find the best dividend stocksShow peers with best dividend

INTERDIGITAL INC

NASDAQ:IDCC (2/17/2026, 8:23:05 PM)

After market: 366.47 +0.05 (+0.01%)

366.42

-8.59 (-2.29%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners105.44%
Inst Owner Change-0.08%
Ins Owners1.26%
Ins Owner Change-5.55%
Market Cap9.41B
Revenue(TTM)834.01M
Net Income(TTM)406.64M
Analysts87.27
Price Target411.95 (12.43%)
Short Float %11.77%
Short Ratio10.62
Dividend
Industry RankSector Rank
Dividend Yield 0.78%
Yearly Dividend2.36
Dividend Growth(5Y)11.01%
DP14.92%
Div Incr Years2
Div Non Decr Years11
Ex-Date01-14
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)7.67%
PT rev (3m)22.2%
EPS NQ rev (1m)15.54%
EPS NQ rev (3m)22.36%
EPS NY rev (1m)3.8%
EPS NY rev (3m)4.55%
Revenue NQ rev (1m)23.17%
Revenue NQ rev (3m)23.17%
Revenue NY rev (1m)3.96%
Revenue NY rev (3m)4.1%
Valuation
Industry RankSector Rank
PE 30.71
Fwd PE 53.14
P/S 11.29
P/FCF 19.86
P/OCF 17.29
P/B 8.55
P/tB 12.41
EV/EBITDA 15.53
EPS(TTM)11.93
EY3.26%
EPS(NY)6.9
Fwd EY1.88%
FCF(TTM)18.45
FCFY5.03%
OCF(TTM)21.19
OCFY5.78%
SpS32.46
BVpS42.86
TBVpS29.52
PEG (NY)N/A
PEG (5Y)0.58
Graham Number107.26
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 8.94
F-Score8
WACC10.87%
ROIC/WACC2.75
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)-0.91%
EPS 3Y50.64%
EPS 5Y52.64%
EPS Q2Q%-70.66%
EPS Next Y-42.2%
EPS Next 2Y-14.78%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.97%
Revenue growth 3Y22.13%
Revenue growth 5Y18.36%
Sales Q2Q%-37.41%
Revenue Next Year-16.14%
Revenue Next 2Y-5.59%
Revenue Next 3Y7.43%
Revenue Next 5YN/A
EBIT growth 1Y4.86%
EBIT growth 3Y44.17%
EBIT growth 5Y52.87%
EBIT Next Year-13.94%
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 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.


What is the profitability of IDCC stock?

INTERDIGITAL INC (IDCC) has a profitability rating of 9 / 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 7 / 10 and the dividend payout ratio is 14.92%.