309.09 USD
+2.4 (+0.78%)
309.58 USD
+0.49 (+0.16%)
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 correct valuation and a medium growth rate. These ratings would make IDCC suitable for quality investing!
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
With an excellent Return On Assets value of 23.22%, IDCC belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 36.86%, IDCC belongs to the top of the industry, outperforming 98.19% of the companies in the same industry.
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's Profit Margin of 53.50% is amongst the best of the industry. IDCC outperforms 93.84% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of IDCC has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IDCC is creating value.
IDCC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for IDCC has been reduced compared to 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 7.64. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IDCC (7.64) is better than 82.25% of its industry peers.
IDCC has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
IDCC's Debt to FCF ratio of 0.80 is fine compared to the rest of the industry. IDCC outperforms 76.45% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that IDCC is not too dependend on debt financing.
IDCC's Debt to Equity ratio of 0.02 is fine compared to the rest of the industry. IDCC outperforms 63.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 7.64 |
ROIC/WACC3.41
WACC10.82%
2.3 Liquidity
A Current Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
The Current ratio of IDCC (1.89) is comparable to the rest of the industry.
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.
With a Quick ratio value of 1.89, IDCC perfoms like the industry average, outperforming 57.61% 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 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.
IDCC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 78.74% yearly.
The Revenue has grown by 28.75% in the past year. This is a very strong growth!
Measured over the past years, IDCC shows a very strong growth in Revenue. The Revenue has been growing by 22.19% on average per year.
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
IDCC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.95% yearly.
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
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
A Price/Earnings ratio of 20.86 indicates a rather expensive valuation of IDCC.
75.00% of the companies in the same industry are more expensive than IDCC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. IDCC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 46.53, IDCC can be considered very expensive at the moment.
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 (23.88), we can say IDCC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.86 | ||
| Fwd PE | 46.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaper than 88.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued cheaply inside the industry as 88.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.48 | ||
| EV/EBITDA | 10.27 |
4.3 Compensation for Growth
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 -11.88% in the coming years.
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 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 0.53, IDCC pays a better dividend. On top of this IDCC pays more dividend than 91.67% of the companies listed in the same industry.
With a Dividend Yield of 0.91, IDCC pays less dividend than the S&P500 average, which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of IDCC has a limited annual growth rate of 3.26%.
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)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%
309.09
+2.4 (+0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.44%
Inst Owner Change0%
Ins Owners1.26%
Ins Owner Change-2.2%
Market Cap7.96B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (23.78%)
Short Float %11.89%
Short Ratio9.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.87%
Div Incr Years2
Div Non Decr Years11
Ex-Date
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 | 20.86 | ||
| Fwd PE | 46.53 | ||
| P/S | 8.57 | ||
| P/FCF | 13.48 | ||
| P/OCF | 11.82 | ||
| P/B | 7.23 | ||
| P/tB | 10.42 | ||
| EV/EBITDA | 10.27 |
EPS(TTM)14.82
EY4.79%
EPS(NY)6.64
Fwd EY2.15%
FCF(TTM)22.93
FCFY7.42%
OCF(TTM)26.15
OCFY8.46%
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 | 7.64 |
F-Score9
WACC10.82%
ROIC/WACC3.41
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%.