INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
USA - NASDAQ:IDCC - US45867G1013 - Common Stock
372.48 USD
-14.35 (-3.71%)
372.48 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to IDCC. IDCC was compared to 285 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. This makes IDCC very considerable for quality investing!
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.
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
The Return On Assets of IDCC (23.35%) is better than 96.14% of its industry peers.
IDCC has a Return On Equity of 42.65%. This is amongst the best in the industry. IDCC outperforms 94.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 36.65%, IDCC belongs to the top of the industry, outperforming 98.25% 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 11.88%.
The 3 year average ROIC (21.38%) for IDCC is below the current ROIC(36.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 42.65% | ||
| ROIC | 36.65% |
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 51.92% is amongst the best of the industry. IDCC outperforms 94.74% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
IDCC's Operating Margin of 60.40% is amongst the best of the industry. IDCC outperforms 97.89% of its industry peers.
In the last couple of years the Operating Margin of IDCC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.4% | ||
| PM (TTM) | 51.92% | ||
| 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.
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
An Altman-Z score of 9.62 indicates that IDCC is not in any danger for bankruptcy at the moment.
IDCC has a better Altman-Z score (9.62) than 84.91% of its industry peers.
IDCC has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
IDCC has a better Debt to FCF ratio (1.72) than 70.18% 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.
IDCC has a better Debt to Equity ratio (0.02) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 9.62 |
ROIC/WACC3.37
WACC10.87%
2.3 Liquidity
IDCC has a Current Ratio of 1.96. 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 better Current ratio (1.96) than 60.35% of its industry peers.
A Quick Ratio of 1.96 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC has a better Quick ratio (1.96) than 60.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
IDCC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.15%, which is quite impressive.
The Earnings Per Share has been growing by 78.74% on average over the past years. This is a very strong growth
The Revenue has grown by 21.83% 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)41.15%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%36.13%
Revenue 1Y (TTM)21.83%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%34.5%
3.2 Future
Based on estimates for the next years, IDCC will show a decrease in Earnings Per Share. The EPS will decrease by -7.63% on average per year.
IDCC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.93% yearly.
EPS Next Y-0.2%
EPS Next 2Y-22.99%
EPS Next 3Y-7.63%
EPS Next 5YN/A
Revenue Next Year-3.8%
Revenue Next 2Y-11.76%
Revenue Next 3Y-2.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.
4. Valuation
4.1 Price/Earnings Ratio
IDCC is valuated quite expensively with a Price/Earnings ratio of 26.55.
70.18% 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 26.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 52.17, 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 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 52.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IDCC indicates a rather cheap valuation: IDCC is cheaper than 85.96% of the companies listed in the same industry.
IDCC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IDCC is cheaper than 68.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.05 | ||
| EV/EBITDA | 14.26 |
4.3 Compensation for Growth
The excellent profitability rating of IDCC may justify a higher PE ratio.
IDCC's earnings are expected to decrease with -7.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-22.99%
EPS Next 3Y-7.63%
5. Dividend
5.1 Amount
IDCC has a yearly dividend return of 0.75%, which is pretty low.
IDCC's Dividend Yield is rather good when compared to the industry average which is at 34.33. IDCC pays more dividend than 92.28% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
10.48% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
DP10.48%
EPS Next 2Y-22.99%
EPS Next 3Y-7.63%
372.48
-14.35 (-3.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.87%
Inst Owner Change0.26%
Ins Owners1.26%
Ins Owner Change-0.84%
Market Cap9.61B
Revenue(TTM)892.58M
Net Income(TTM)463.47M
Analysts80
Price Target314.67 (-15.52%)
Short Float %9.43%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.48%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.21%
Min EPS beat(2)13.22%
Max EPS beat(2)91.19%
EPS beat(4)3
Avg EPS beat(4)116.84%
Min EPS beat(4)-2.73%
Max EPS beat(4)365.69%
EPS beat(8)7
Avg EPS beat(8)219.54%
EPS beat(12)11
Avg EPS beat(12)195.46%
EPS beat(16)14
Avg EPS beat(16)158.5%
Revenue beat(2)2
Avg Revenue beat(2)36.94%
Min Revenue beat(2)0.55%
Max Revenue beat(2)73.32%
Revenue beat(4)4
Avg Revenue beat(4)26.71%
Min Revenue beat(4)0.55%
Max Revenue beat(4)73.32%
Revenue beat(8)7
Avg Revenue beat(8)33.38%
Revenue beat(12)10
Avg Revenue beat(12)30.78%
Revenue beat(16)14
Avg Revenue beat(16)24.75%
PT rev (1m)7.98%
PT rev (3m)57.13%
EPS NQ rev (1m)18.84%
EPS NQ rev (3m)12.78%
EPS NY rev (1m)-5.91%
EPS NY rev (3m)29.51%
Revenue NQ rev (1m)5.28%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)17.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 52.17 | ||
| P/S | 10.77 | ||
| P/FCF | 35.05 | ||
| P/OCF | 27.09 | ||
| P/B | 8.84 | ||
| P/tB | 12.88 | ||
| EV/EBITDA | 14.26 |
EPS(TTM)14.03
EY3.77%
EPS(NY)7.14
Fwd EY1.92%
FCF(TTM)10.63
FCFY2.85%
OCF(TTM)13.75
OCFY3.69%
SpS34.6
BVpS42.12
TBVpS28.93
PEG (NY)N/A
PEG (5Y)0.34
Graham Number115.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 42.65% | ||
| ROCE | 42.26% | ||
| ROIC | 36.65% | ||
| ROICexc | 137.99% | ||
| ROICexgc | N/A | ||
| OM | 60.4% | ||
| PM (TTM) | 51.92% | ||
| GM | N/A | ||
| FCFM | 30.72% |
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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 110.44% | ||
| Cap/Sales | 9.03% | ||
| Interest Coverage | 33.49 | ||
| Cash Conversion | 57.96% | ||
| Profit Quality | 59.16% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 9.62 |
F-Score8
WACC10.87%
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)41.15%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%36.13%
EPS Next Y-0.2%
EPS Next 2Y-22.99%
EPS Next 3Y-7.63%
EPS Next 5YN/A
Revenue 1Y (TTM)21.83%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%34.5%
Revenue Next Year-3.8%
Revenue Next 2Y-11.76%
Revenue Next 3Y-2.93%
Revenue Next 5YN/A
EBIT growth 1Y70.25%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year26.16%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y23.4%
FCF growth 3Y31.31%
FCF growth 5Y32.33%
OCF growth 1Y34.19%
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 6 / 10 to IDCC.
What is the valuation status of INTERDIGITAL INC (IDCC) stock?
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.
Can you provide the expected EPS growth for IDCC stock?
The Earnings per Share (EPS) of INTERDIGITAL INC (IDCC) is expected to decline by -0.2% in the next year.
Can you provide the dividend sustainability for IDCC stock?
The dividend rating of INTERDIGITAL INC (IDCC) is 5 / 10 and the dividend payout ratio is 10.48%.