INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
NASDAQ:IDCC - Nasdaq - US45867G1013 - Common Stock - Currency: USD
Overall IDCC gets a fundamental rating of 6 out of 10. We evaluated IDCC against 284 industry peers in the Software industry. IDCC has an excellent profitability rating, but there are some minor concerns on its financial health. IDCC has a decent growth rate and is not valued too expensively.
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.
In the past 5 years IDCC always reported a positive cash flow from operatings.
1.2 Ratios
IDCC's Return On Assets of 15.34% is amongst the best of the industry. IDCC outperforms 91.34% of its industry peers.
The Return On Equity of IDCC (36.62%) is better than 93.14% of its industry peers.
IDCC has a Return On Invested Capital of 25.09%. This is amongst the best in the industry. IDCC outperforms 95.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IDCC is in line with the industry average of 12.13%.
The 3 year average ROIC (11.85%) for IDCC is below the current ROIC(25.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.34% | ||
| ROE | 36.62% | ||
| ROIC | 25.1% |
ROA(3y)6.81%
ROA(5y)4.9%
ROE(3y)19.05%
ROE(5y)13.14%
ROIC(3y)11.85%
ROIC(5y)8.3%
1.3 Margins
The Profit Margin of IDCC (36.69%) is better than 96.03% of its industry peers.
In the last couple of years the Profit Margin of IDCC has grown nicely.
Looking at the Operating Margin, with a value of 41.92%, IDCC belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
IDCC's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.92% | ||
| PM (TTM) | 36.69% | ||
| GM | N/A |
OM growth 3Y37.9%
OM growth 5Y14.64%
PM growth 3Y46.14%
PM growth 5Y13%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for IDCC has been reduced compared to 5 years ago.
IDCC has a worse debt/assets ratio than last year.
2.2 Solvency
IDCC has an Altman-Z score of 5.44. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
IDCC's Altman-Z score of 5.44 is fine compared to the rest of the industry. IDCC outperforms 65.34% of its industry peers.
The Debt to FCF ratio of IDCC is 66.87, which is on the high side as it means it would take IDCC, 66.87 years of fcf income to pay off all of its debts.
IDCC has a Debt to FCF ratio of 66.87. This is comparable to the rest of the industry: IDCC outperforms 45.49% of its industry peers.
IDCC has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of IDCC (0.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 66.87 | ||
| Altman-Z | 5.44 |
ROIC/WACC2.37
WACC10.6%
2.3 Liquidity
IDCC has a Current Ratio of 1.62. 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 (1.62) which is in line with its industry peers.
IDCC has a Quick Ratio of 1.62. 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 1.62 is in line compared to the rest of the industry. IDCC outperforms 48.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
IDCC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.54%, which is quite impressive.
Measured over the past years, IDCC shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.56% on average per year.
IDCC shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.52%.
IDCC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.32% yearly.
EPS 1Y (TTM)30.54%
EPS 3Y73.34%
EPS 5Y34.56%
EPS Q2Q%-33.72%
Revenue 1Y (TTM)28.52%
Revenue growth 3Y15.25%
Revenue growth 5Y12.32%
Sales Q2Q%-8.16%
3.2 Future
The Earnings Per Share is expected to grow by 8.95% on average over the next years. This is quite good.
IDCC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y65.7%
EPS Next 2Y-20.31%
EPS Next 3Y-7.87%
EPS Next 5Y8.95%
Revenue Next Year56.72%
Revenue Next 2Y-1.44%
Revenue Next 3Y0.31%
Revenue Next 5Y4.05%
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
Based on the Price/Earnings ratio of 19.72, the valuation of IDCC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of IDCC indicates a rather cheap valuation: IDCC is cheaper than 83.75% of the companies listed in the same industry.
IDCC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 38.74, the valuation of IDCC can be described as expensive.
Based on the Price/Forward Earnings ratio, IDCC is valued a bit cheaper than the industry average as 63.90% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, IDCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.72 | ||
| Fwd PE | 38.74 |
4.2 Price Multiples
IDCC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IDCC is cheaper than 93.50% of the companies in the same industry.
IDCC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 661.74 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
IDCC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of IDCC may justify a higher PE ratio.
A cheap valuation may be justified as IDCC's earnings are expected to decrease with -7.87% in the coming years.
PEG (NY)0.3
PEG (5Y)0.57
EPS Next 2Y-20.31%
EPS Next 3Y-7.87%
5. Dividend
5.1 Amount
IDCC has a yearly dividend return of 0.97%, which is pretty low.
IDCC's Dividend Yield is rather good when compared to the industry average which is at 11.93. IDCC pays more dividend than 92.78% of the companies in the same industry.
With a Dividend Yield of 0.97, IDCC pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
The dividend of IDCC has a limited annual growth rate of 0.04%.
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)0.04%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
15.41% of the earnings are spent on dividend by IDCC. This is a low number and sustainable payout ratio.
IDCC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.41%
EPS Next 2Y-20.31%
EPS Next 3Y-7.87%
INTERDIGITAL INC
NASDAQ:IDCC (2/4/2025, 8:00:02 PM)
After market: 186.7 +2.15 (+1.16%)184.55
+2.56 (+1.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners107.01%
Inst Owner Change-2.51%
Ins Owners1.21%
Ins Owner Change-0.73%
Market Cap4.68B
Analysts80
Price Target180.03 (-2.45%)
Short Float %8.73%
Short Ratio6.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend1.43
Dividend Growth(5Y)0.04%
DP15.41%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)720.18%
Min EPS beat(2)365.69%
Max EPS beat(2)1074.68%
EPS beat(4)4
Avg EPS beat(4)374.59%
Min EPS beat(4)2.67%
Max EPS beat(4)1074.68%
EPS beat(8)8
Avg EPS beat(8)272.38%
EPS beat(12)11
Avg EPS beat(12)200.76%
EPS beat(16)15
Avg EPS beat(16)515.96%
Revenue beat(2)2
Avg Revenue beat(2)75.65%
Min Revenue beat(2)31.48%
Max Revenue beat(2)119.82%
Revenue beat(4)3
Avg Revenue beat(4)38.35%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)119.82%
Revenue beat(8)6
Avg Revenue beat(8)36.33%
Revenue beat(12)10
Avg Revenue beat(12)25.31%
Revenue beat(16)14
Avg Revenue beat(16)20.26%
PT rev (1m)0%
PT rev (3m)22.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)171.22%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)54.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)62.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)19.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.72 | ||
| Fwd PE | 38.74 | ||
| P/S | 6.48 | ||
| P/FCF | 661.74 | ||
| P/OCF | 83.62 | ||
| P/B | 6.47 | ||
| P/tB | 11.68 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)9.36
EY5.07%
EPS(NY)4.76
Fwd EY2.58%
FCF(TTM)0.28
FCFY0.15%
OCF(TTM)2.21
OCFY1.2%
SpS28.46
BVpS28.51
TBVpS15.81
PEG (NY)0.3
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.34% | ||
| ROE | 36.62% | ||
| ROCE | 29.83% | ||
| ROIC | 25.1% | ||
| ROICexc | 126.95% | ||
| ROICexgc | N/A | ||
| OM | 41.92% | ||
| PM (TTM) | 36.69% | ||
| GM | N/A | ||
| FCFM | 0.98% |
ROA(3y)6.81%
ROA(5y)4.9%
ROE(3y)19.05%
ROE(5y)13.14%
ROIC(3y)11.85%
ROIC(5y)8.3%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.08%
ROCE(5y)9.86%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y37.9%
OM growth 5Y14.64%
PM growth 3Y46.14%
PM growth 5Y13%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 66.87 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 68.57% | ||
| Cap/Sales | 6.77% | ||
| Interest Coverage | 16.22 | ||
| Cash Conversion | 14.97% | ||
| Profit Quality | 2.67% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 5.44 |
F-Score6
WACC10.6%
ROIC/WACC2.37
Cap/Depr(3y)53.6%
Cap/Depr(5y)52.49%
Cap/Sales(3y)8.82%
Cap/Sales(5y)10.04%
Profit Quality(3y)168.37%
Profit Quality(5y)204.27%
High Growth Momentum
Growth
EPS 1Y (TTM)30.54%
EPS 3Y73.34%
EPS 5Y34.56%
EPS Q2Q%-33.72%
EPS Next Y65.7%
EPS Next 2Y-20.31%
EPS Next 3Y-7.87%
EPS Next 5Y8.95%
Revenue 1Y (TTM)28.52%
Revenue growth 3Y15.25%
Revenue growth 5Y12.32%
Sales Q2Q%-8.16%
Revenue Next Year56.72%
Revenue Next 2Y-1.44%
Revenue Next 3Y0.31%
Revenue Next 5Y4.05%
EBIT growth 1Y28.64%
EBIT growth 3Y58.94%
EBIT growth 5Y28.77%
EBIT Next Year145.48%
EBIT Next 3Y9.97%
EBIT Next 5YN/A
FCF growth 1Y118.26%
FCF growth 3Y11.77%
FCF growth 5Y9%
OCF growth 1Y7889.57%
OCF growth 3Y9.34%
OCF growth 5Y7.8%