309 USD
-26.84 (-7.99%)
315.241 USD
+6.24 (+2.02%)
Taking everything into account, IDCC scores 7 out of 10 in our fundamental rating. IDCC was compared to 276 industry peers in the Software industry. IDCC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IDCC has a decent growth rate and is not valued too expensively. These ratings would make IDCC suitable for quality investing!
1. Profitability
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.
1.2 Ratios
IDCC has a Return On Assets of 23.22%. This is amongst the best in the industry. IDCC outperforms 96.74% of its industry peers.
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.
IDCC has a Return On Invested Capital of 36.86%. This is amongst the best in the industry. IDCC outperforms 98.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IDCC is significantly above the industry average of 10.78%.
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
With an excellent Profit Margin value of 53.50%, IDCC belongs to the best of the industry, outperforming 93.84% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IDCC is creating value.
The number of shares outstanding for IDCC has been increased compared to 1 year ago.
Compared to 5 years ago, IDCC has less shares outstanding
IDCC has a better debt/assets ratio than last year.
2.2 Solvency
IDCC has an Altman-Z score of 8.07. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.07, IDCC belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
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 has a better Debt to FCF ratio (0.80) than 76.45% of its industry peers.
IDCC has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.02, IDCC is in the better half of the industry, outperforming 63.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 8.07 |
ROIC/WACC3.41
WACC10.8%
2.3 Liquidity
A Current Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Current ratio (1.89) which is comparable to the rest of the industry.
A Quick Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a Quick ratio (1.89) 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
IDCC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.33%, which is quite impressive.
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!
The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
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
IDCC is valuated rather expensively with a Price/Earnings ratio of 20.85.
70.65% of the companies in the same industry are more expensive than IDCC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.17, IDCC is valued a bit cheaper.
The Price/Forward Earnings ratio is 46.52, which means the current valuation is very expensive for IDCC.
IDCC's Price/Forward Earnings ratio is in line with the industry average.
IDCC is valuated expensively when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 46.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaply inside the industry as 85.51% of the companies are valued more expensively.
85.87% of the companies in the same industry are more expensive than IDCC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.47 | ||
| EV/EBITDA | 11.42 |
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)0.26
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, 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 0.54. IDCC pays more dividend than 91.67% of the companies in the same industry.
With a Dividend Yield of 0.88, IDCC pays less dividend than the S&P500 average, which is at 1.94.
| 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 been paying a dividend for at least 10 years, so it has 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
-26.84 (-7.99%)
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 Cap7.95B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (23.82%)
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)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 | 20.85 | ||
| Fwd PE | 46.52 | ||
| P/S | 8.57 | ||
| P/FCF | 13.47 | ||
| P/OCF | 11.82 | ||
| P/B | 7.23 | ||
| P/tB | 10.42 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)14.82
EY4.8%
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 | 8.07 |
F-Score9
WACC10.8%
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%.