INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
NASDAQ:IDCC • US45867G1013
368 USD
-10.83 (-2.86%)
Last: Mar 3, 2026, 11:02 AM
Overall IDCC gets a fundamental rating of 7 out of 10. We evaluated IDCC 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 is not valued too expensively and it also shows a decent growth rate. Finally IDCC also has an excellent dividend rating. With these ratings, IDCC could be worth investigating further for dividend 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.
- Each year in the past 5 years IDCC had a positive operating cash flow.
1.2 Ratios
- IDCC has a better Return On Assets (19.70%) than 96.01% of its industry peers.
- IDCC's Return On Equity of 36.93% is amongst the best of the industry. IDCC outperforms 93.84% of its industry peers.
- IDCC's Return On Invested Capital of 29.89% is amongst the best of the industry. IDCC outperforms 97.83% of its industry peers.
- IDCC had an Average Return On Invested Capital over the past 3 years of 28.26%. This is significantly above the industry average of 10.80%.
- The 3 year average ROIC (28.26%) for IDCC is below the current ROIC(29.89%), indicating increased profibility in the last year.
| 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
- The Profit Margin of IDCC (48.76%) is better than 95.65% of its industry peers.
- IDCC's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 55.26%, IDCC belongs to the best of the industry, outperforming 99.28% of the companies in the same industry.
- In the last couple of years the Operating Margin of IDCC has grown nicely.
- The Gross Margin of IDCC (88.77%) is better than 94.93% of its industry peers.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IDCC is creating value.
- Compared to 1 year ago, IDCC has about the same amount of shares outstanding.
- 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 9.01. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
- IDCC's Altman-Z score of 9.01 is amongst the best of the industry. IDCC outperforms 90.58% 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 75.00% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that IDCC is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.01, IDCC is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 9.01 |
ROIC/WACC2.77
WACC10.77%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that IDCC should not have too much problems paying its short term obligations.
- IDCC has a Current ratio (1.84) which is comparable to the rest of the industry.
- A Quick Ratio of 1.84 indicates that IDCC should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.84, IDCC perfoms like the industry average, outperforming 56.16% 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 | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
- The earnings per share for IDCC have decreased by -0.91% in the last year.
- The Earnings Per Share has been growing by 52.64% on average over the past years. This is a very strong growth
- IDCC shows a decrease in Revenue. In the last year, the revenue decreased by -3.97%.
- Measured over the past years, IDCC shows a quite strong growth in Revenue. The Revenue has been growing by 18.36% on average per year.
EPS 1Y (TTM)-0.91%
EPS 3Y50.64%
EPS 5Y52.64%
EPS Q2Q%-70.66%
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.64% yearly.
- The Revenue is expected to grow by 7.43% on average over the next years.
EPS Next Y-42.2%
EPS Next 2Y-14.78%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue Next Year-14.73%
Revenue Next 2Y-6.11%
Revenue Next 3Y7.43%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
- The Price/Earnings ratio is 30.85, which means the current valuation is very expensive for IDCC.
- The rest of the industry has a similar Price/Earnings ratio as IDCC.
- When comparing the Price/Earnings ratio of IDCC to the average of the S&P500 Index (27.13), we can say IDCC is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 53.37, the valuation of IDCC can be described as expensive.
- IDCC's Price/Forward Earnings is on the same level as the industry average.
- IDCC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 53.37 |
4.2 Price Multiples
- 78.99% of the companies in the same industry are more expensive than IDCC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, IDCC is valued a bit cheaper than 73.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.95 | ||
| EV/EBITDA | 15.71 |
4.3 Compensation for Growth
- IDCC has an outstanding profitability rating, which may justify a higher PE ratio.
- IDCC's earnings are expected to grow with 17.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-14.78%
EPS Next 3Y17.64%
5. Dividend
5.1 Amount
- IDCC has a yearly dividend return of 0.75%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.58, IDCC pays a better dividend. On top of this IDCC pays more dividend than 89.49% of the companies listed in the same industry.
- With a Dividend Yield of 0.75, IDCC pays less dividend than the S&P500 average, which is at 1.82.
| 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 been paying a dividend for at least 10 years, so it has 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
- IDCC pays out 14.92% of its income as dividend. This is a sustainable payout ratio.
- IDCC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.92%
EPS Next 2Y-14.78%
EPS Next 3Y17.64%
NASDAQ:IDCC (3/3/2026, 11:02:05 AM)
368
-10.83 (-2.86%)
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 Change3.78%
Ins Owners1.26%
Ins Owner Change-5.43%
Market Cap9.45B
Revenue(TTM)834.01M
Net Income(TTM)406.64M
Analysts87.27
Price Target411.95 (11.94%)
Short Float %11.93%
Short Ratio10.56
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)20.86%
Min EPS beat(2)18.04%
Max EPS beat(2)23.67%
EPS beat(4)4
Avg EPS beat(4)36.53%
Min EPS beat(4)13.22%
Max EPS beat(4)91.19%
EPS beat(8)7
Avg EPS beat(8)198.3%
EPS beat(12)11
Avg EPS beat(12)189.84%
EPS beat(16)14
Avg EPS beat(16)153.17%
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)7.67%
EPS NQ rev (1m)20.71%
EPS NQ rev (3m)15.54%
EPS NY rev (1m)7.99%
EPS NY rev (3m)4.55%
Revenue NQ rev (1m)26.52%
Revenue NQ rev (3m)23.17%
Revenue NY rev (1m)2.09%
Revenue NY rev (3m)5.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 53.37 | ||
| P/S | 11.34 | ||
| P/FCF | 19.95 | ||
| P/OCF | 17.36 | ||
| P/B | 8.59 | ||
| P/tB | 12.47 | ||
| EV/EBITDA | 15.71 |
EPS(TTM)11.93
EY3.24%
EPS(NY)6.9
Fwd EY1.87%
FCF(TTM)18.45
FCFY5.01%
OCF(TTM)21.19
OCFY5.76%
SpS32.46
BVpS42.86
TBVpS29.52
PEG (NY)N/A
PEG (5Y)0.59
Graham Number107.26
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 | 9.01 |
F-Score8
WACC10.77%
ROIC/WACC2.77
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)-0.91%
EPS 3Y50.64%
EPS 5Y52.64%
EPS Q2Q%-70.66%
EPS Next Y-42.2%
EPS Next 2Y-14.78%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.97%
Revenue growth 3Y22.13%
Revenue growth 5Y18.36%
Sales Q2Q%-37.41%
Revenue Next Year-14.73%
Revenue Next 2Y-6.11%
Revenue Next 3Y7.43%
Revenue Next 5YN/A
EBIT growth 1Y4.86%
EBIT growth 3Y44.17%
EBIT growth 5Y52.87%
EBIT Next Year-12.91%
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 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 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 7 / 10 and the dividend payout ratio is 14.92%.