326.26 USD
+7.88 (+2.48%)
326.26 USD
0 (0%)
IDCC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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. With these ratings, IDCC could be worth investigating further 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.
In the past 5 years IDCC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.22%, IDCC belongs to the top of the industry, outperforming 96.74% of the companies in the same industry.
IDCC's Return On Equity of 45.16% is amongst the best of the industry. IDCC outperforms 95.29% of its industry peers.
The Return On Invested Capital of IDCC (36.86%) is better than 98.19% of its industry peers.
IDCC had an Average Return On Invested Capital over the past 3 years of 21.38%. This is significantly above the industry average of 10.78%.
The 3 year average ROIC (21.38%) for IDCC is below the current ROIC(36.86%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 53.50%, IDCC belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
In the last couple of years the Profit Margin of IDCC has grown nicely.
IDCC has a better Operating Margin (61.99%) than 97.46% of its industry peers.
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.
IDCC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IDCC has less shares outstanding
The debt/assets ratio for IDCC has been reduced compared to a year ago.
2.2 Solvency
IDCC has an Altman-Z score of 7.81. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
IDCC has a Altman-Z score of 7.81. This is amongst the best in the industry. IDCC outperforms 83.70% 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.
The Debt to FCF ratio of IDCC (0.80) is better than 76.45% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that IDCC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.02, IDCC is doing good in the industry, outperforming 64.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 7.81 |
ROIC/WACC3.37
WACC10.95%
2.3 Liquidity
IDCC has a Current 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 Current ratio (1.89) which 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.
IDCC's Quick ratio of 1.89 is in line compared 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
Looking at the last year, IDCC shows a very strong growth in Revenue. The Revenue has grown by 28.75%.
IDCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.19% yearly.
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
IDCC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.88% yearly.
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
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.
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
IDCC is valuated rather expensively with a Price/Earnings ratio of 22.01.
73.19% of the companies in the same industry are more expensive than IDCC, based on the Price/Earnings ratio.
IDCC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 49.12 indicates a quite expensive valuation of IDCC.
The rest of the industry has a similar Price/Forward Earnings ratio as IDCC.
When comparing the Price/Forward Earnings ratio of IDCC to the average of the S&P500 Index (23.23), we can say IDCC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 49.12 |
4.2 Price Multiples
86.59% of the companies in the same industry are more expensive than IDCC, based on the Enterprise Value to EBITDA ratio.
IDCC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IDCC is cheaper than 87.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.23 | ||
| EV/EBITDA | 10.73 |
4.3 Compensation for Growth
IDCC has an outstanding profitability rating, which 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)0.28
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
5. Dividend
5.1 Amount
IDCC has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 0.51, IDCC pays a better dividend. On top of this IDCC pays more dividend than 92.03% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.26%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
IDCC pays out 10.87% of its income as dividend. This is a sustainable payout ratio.
DP10.87%
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
326.26
+7.88 (+2.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.44%
Inst Owner Change3.7%
Ins Owners1.26%
Ins Owner Change-1.69%
Market Cap8.40B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (17.27%)
Short Float %11.89%
Short Ratio9.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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)31.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.98%
EPS NY rev (1m)-1.14%
EPS NY rev (3m)-7.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.87%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 49.12 | ||
| P/S | 9.04 | ||
| P/FCF | 14.23 | ||
| P/OCF | 12.48 | ||
| P/B | 7.63 | ||
| P/tB | 11 | ||
| EV/EBITDA | 10.73 |
EPS(TTM)14.82
EY4.54%
EPS(NY)6.64
Fwd EY2.04%
FCF(TTM)22.93
FCFY7.03%
OCF(TTM)26.15
OCFY8.01%
SpS36.08
BVpS42.73
TBVpS29.66
PEG (NY)N/A
PEG (5Y)0.28
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 | 7.81 |
F-Score9
WACC10.95%
ROIC/WACC3.37
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 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 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%.