INTERDIGITAL INC (IDCC)
US45867G1013 - Common Stock
Taking everything into account, IDCC scores 6 out of 10 in our fundamental rating. IDCC was compared to 279 industry peers in the Software industry. While IDCC belongs to the best of the industry regarding profitability, 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
In the past year IDCC was profitable.
IDCC had a positive operating cash flow in the past year.
Each year in the past 5 years IDCC has 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 (15.34%) than 93.19% of its industry peers.
IDCC has a Return On Equity of 36.62%. This is amongst the best in the industry. IDCC outperforms 94.27% of its industry peers.
IDCC's Return On Invested Capital of 25.09% is amongst the best of the industry. IDCC outperforms 96.42% 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 11.54%.
The last Return On Invested Capital (25.09%) for IDCC is above the 3 year average (11.85%), which is a sign of increasing profitability.
| 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
IDCC has a better Profit Margin (36.69%) than 97.13% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
IDCC has a better Operating Margin (41.92%) than 98.57% of its industry peers.
In the last couple of years the Operating Margin of IDCC has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so IDCC 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.
Compared to 1 year ago, IDCC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.43 indicates that IDCC is not in any danger for bankruptcy at the moment.
IDCC has a Altman-Z score of 5.43. This is in the better half of the industry: IDCC outperforms 64.16% of its industry peers.
IDCC has a debt to FCF ratio of 66.87. This is a negative value and a sign of low solvency as IDCC would need 66.87 years to pay back of all of its debts.
IDCC has a Debt to FCF ratio (66.87) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.03 indicates that IDCC is not too dependend on debt financing.
IDCC has a Debt to Equity ratio of 0.03. This is in the better half of the industry: IDCC outperforms 60.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 66.87 | ||
| Altman-Z | 5.43 |
ROIC/WACC2.17
WACC11.55%
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.
Looking at the Current ratio, with a value of 1.62, IDCC is in line with its industry, outperforming 48.75% of the companies in the same industry.
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.
With a Quick ratio value of 1.62, IDCC perfoms like the industry average, outperforming 49.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.54% over the past year.
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 decrease by -1.22% on average over the next years.
Based on estimates for the next years, IDCC will show a small growth in Revenue. The Revenue will grow by 1.48% on average per year.
EPS Next Y67.14%
EPS Next 2Y-18.93%
EPS Next 3Y-8.93%
EPS Next 5Y-1.22%
Revenue Next Year56.72%
Revenue Next 2Y-1.57%
Revenue Next 3Y0.05%
Revenue Next 5Y1.48%
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 19.60.
Based on the Price/Earnings ratio, IDCC is valued cheaper than 84.59% of the companies in the same industry.
IDCC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 37.21, the valuation of IDCC can be described as expensive.
IDCC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IDCC is cheaper than 62.37% of the companies in the same industry.
IDCC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 37.21 |
4.2 Price Multiples
IDCC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IDCC is cheaper than 93.19% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as IDCC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 657.69 | ||
| EV/EBITDA | 10.43 |
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.
IDCC has an outstanding profitability rating, which may justify a higher PE ratio.
IDCC's earnings are expected to decrease with -8.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.29
PEG (5Y)0.57
EPS Next 2Y-18.93%
EPS Next 3Y-8.93%
5. Dividend
5.1 Amount
IDCC has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 11.80, IDCC pays a better dividend. On top of this IDCC pays more dividend than 93.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of IDCC has a limited annual growth rate of 0.04%.
IDCC has paid a dividend for at least 10 years, which is 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)0.04%
Div Incr Years1
Div Non Decr Years10
5.3 Sustainability
IDCC pays out 15.41% of its income as dividend. This is a sustainable payout ratio.
DP15.41%
EPS Next 2Y-18.93%
EPS Next 3Y-8.93%
INTERDIGITAL INC
NASDAQ:IDCC (11/21/2024, 8:00:02 PM)
After market: 183.42 0 (0%)183.42
+1.13 (+0.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 37.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.29
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.34% | ||
| ROE | 36.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.92% | ||
| PM (TTM) | 36.69% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.54%
EPS 3Y73.34%
EPS 5Y
EPS Q2Q%
EPS Next Y67.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.52%
Revenue growth 3Y15.25%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y