351.56 USD
-25.04 (-6.65%)
Last: Feb 10, 2026, 02:48 PM
We assign a fundamental rating of 6 out of 10 to IDCC. IDCC was compared to 277 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 does not seem to be growing, but still is valued expensively.
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.
- 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 (19.70%) than 95.67% of its industry peers.
- IDCC has a better Return On Equity (36.93%) than 94.22% of its industry peers.
- IDCC has a better Return On Invested Capital (29.89%) than 97.11% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 10.91%.
- 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 Rank | Sector 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%
1.3 Margins
- IDCC's Profit Margin of 48.76% is amongst the best of the industry. IDCC outperforms 93.14% of its industry peers.
- In the last couple of years the Profit Margin of IDCC has grown nicely.
- The Operating Margin of IDCC (55.26%) is better than 97.47% of its industry peers.
- In the last couple of years the Operating Margin of IDCC has grown nicely.
- With an excellent Gross Margin value of 88.77%, IDCC belongs to the best of the industry, outperforming 94.95% of the companies in the same industry.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IDCC is creating value.
- IDCC has about the same amout of shares outstanding than it did 1 year ago.
- IDCC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, IDCC has an improved debt to assets ratio.
2.2 Solvency
- IDCC has an Altman-Z score of 8.98. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
- IDCC has a Altman-Z score of 8.98. This is amongst the best in the industry. IDCC outperforms 90.25% of its industry peers.
- The Debt to FCF ratio of IDCC is 1.00, which is an excellent value as it means it would take IDCC, only 1.00 years of fcf income to pay off all of its debts.
- IDCC has a Debt to FCF ratio of 1.00. This is in the better half of the industry: IDCC outperforms 74.37% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that IDCC is not too dependend on debt financing.
- The Debt to Equity ratio of IDCC (0.01) is better than 62.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 8.98 |
ROIC/WACC2.7
WACC11.05%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that IDCC should not have too much problems paying its short term obligations.
- IDCC's Current ratio of 1.84 is in line compared to the rest of the industry. IDCC outperforms 55.60% of its industry peers.
- A Quick Ratio of 1.84 indicates that IDCC should not have too much problems paying its short term obligations.
- IDCC has a Quick ratio of 1.84. This is comparable to the rest of the industry: IDCC outperforms 55.96% 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 | 1.84 | ||
| Quick Ratio | 1.84 |
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%.
- The Earnings Per Share has been growing by 54.92% 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.
- The Revenue has been growing by 18.36% on average over the past years. This is quite good.
EPS 1Y (TTM)6.73%
EPS 3Y54.42%
EPS 5Y54.92%
EPS Q2Q%-48.17%
Revenue 1Y (TTM)-3.97%
Revenue growth 3Y22.13%
Revenue growth 5Y18.36%
Sales Q2Q%-37.41%
3.2 Future
- IDCC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -17.89% yearly.
- IDCC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.59% yearly.
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.
- 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
- IDCC is valuated quite expensively with a Price/Earnings ratio of 27.36.
- Compared to the rest of the industry, the Price/Earnings ratio of IDCC is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.06. IDCC is around the same levels.
- Based on the Price/Forward Earnings ratio of 50.99, the valuation of IDCC can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as IDCC.
- IDCC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.36 | ||
| Fwd PE | 50.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IDCC is valued a bit cheaper than 79.78% of the companies in the same industry.
- IDCC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IDCC is cheaper than 75.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.09 | ||
| EV/EBITDA | 15.64 |
4.3 Compensation for Growth
- The excellent profitability rating of IDCC may justify a higher PE ratio.
- A cheap valuation may be justified as IDCC's earnings are expected to decrease with -17.89% in the coming years.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-17.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.75%, IDCC is not a good candidate for dividend investing.
- IDCC's Dividend Yield is rather good when compared to the industry average which is at 0.61. IDCC pays more dividend than 89.89% of the companies in the same industry.
- With a Dividend Yield of 0.75, IDCC pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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 Years2
Div Non Decr Years11
5.3 Sustainability
- 14.92% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
DP14.92%
EPS Next 2Y-17.89%
EPS Next 3YN/A
NASDAQ:IDCC (2/10/2026, 2:48:09 PM)
351.56
-25.04 (-6.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)04-29 2026-04-29
Inst Owners105.44%
Inst Owner Change0.61%
Ins Owners1.26%
Ins Owner Change-5.38%
Market Cap9.05B
Revenue(TTM)834.01M
Net Income(TTM)406.64M
Analysts83.33
Price Target411.95 (17.18%)
Short Float %12.44%
Short Ratio11.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend2.36
Dividend Growth(5Y)11.01%
DP14.92%
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)66.1%
Min EPS beat(2)23.67%
Max EPS beat(2)108.54%
EPS beat(4)4
Avg EPS beat(4)59.15%
Min EPS beat(4)13.22%
Max EPS beat(4)108.54%
EPS beat(8)7
Avg EPS beat(8)209.62%
EPS beat(12)11
Avg EPS beat(12)197.38%
EPS beat(16)14
Avg EPS beat(16)158.82%
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)-11.6%
EPS NQ rev (3m)-14.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.14%
Revenue NQ rev (1m)-3.2%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.36 | ||
| Fwd PE | 50.99 | ||
| P/S | 10.85 | ||
| P/FCF | 19.09 | ||
| P/OCF | 16.62 | ||
| P/B | 8.22 | ||
| P/tB | 11.93 | ||
| EV/EBITDA | 15.64 |
EPS(TTM)12.85
EY3.66%
EPS(NY)6.9
Fwd EY1.96%
FCF(TTM)18.41
FCFY5.24%
OCF(TTM)21.15
OCFY6.02%
SpS32.4
BVpS42.78
TBVpS29.46
PEG (NY)N/A
PEG (5Y)0.5
Graham Number111.21
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.98 |
F-Score8
WACC11.05%
ROIC/WACC2.7
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)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)-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 3YN/A
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 6 / 10 to IDCC.
Can you provide the valuation status for INTERDIGITAL INC?
ChartMill assigns a valuation rating of 3 / 10 to INTERDIGITAL INC (IDCC). This can be considered as Overvalued.
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 6 / 10 and the dividend payout ratio is 14.92%.