330.69 USD
+2.35 (+0.72%)
324.75 USD
-5.94 (-1.8%)
Overall IDCC gets a fundamental rating of 7 out of 10. We evaluated IDCC against 276 industry peers in the Software industry. IDCC gets an excellent profitability rating and is at the same time showing great financial health properties. 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
In the past year IDCC was profitable.
IDCC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 23.22%, IDCC belongs to the top of the industry, outperforming 96.74% of the companies in the same industry.
The Return On Equity of IDCC (45.16%) is better than 95.29% of its industry peers.
IDCC's Return On Invested Capital of 36.86% is amongst the best of the industry. IDCC outperforms 98.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
IDCC has a Profit Margin of 53.50%. This is amongst the best in the industry. IDCC outperforms 94.20% of its industry peers.
In the last couple of years the Profit Margin of IDCC has grown nicely.
IDCC has a Operating Margin of 61.99%. This is amongst the best in the industry. IDCC outperforms 97.46% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IDCC is creating value.
Compared to 1 year ago, IDCC has more shares outstanding
The number of shares outstanding for IDCC has been reduced compared to 5 years ago.
IDCC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.99 indicates that IDCC is not in any danger for bankruptcy at the moment.
IDCC's Altman-Z score of 7.99 is amongst the best of the industry. IDCC outperforms 82.97% of its industry peers.
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's Debt to FCF ratio of 0.80 is fine compared to the rest of the industry. IDCC outperforms 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 64.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 7.99 |
ROIC/WACC3.39
WACC10.87%
2.3 Liquidity
A Current Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC's Current ratio of 1.89 is in line compared to the rest of the industry. IDCC outperforms 57.25% of its industry peers.
IDCC has a Quick Ratio of 1.89. This is a normal value and indicates that IDCC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of IDCC (1.89) is comparable to the rest of the industry.
The current and quick ratio evaluation for IDCC is rather negative, while it does have 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.
Looking at the last year, IDCC shows a very strong growth in Revenue. The Revenue has grown by 28.75%.
IDCC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.19% yearly.
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
IDCC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.88% yearly.
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.
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 22.31, the valuation of IDCC can be described as rather expensive.
IDCC's Price/Earnings ratio is a bit cheaper when compared to the industry. IDCC is cheaper than 71.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, IDCC is valued at the same level.
The Price/Forward Earnings ratio is 49.78, which means the current valuation is very expensive for IDCC.
IDCC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, IDCC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 49.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IDCC is valued cheaper than 86.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.42 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
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 -11.88% in the coming years.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, IDCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.51, IDCC pays a better dividend. On top of this IDCC pays more dividend than 92.03% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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%
330.69
+2.35 (+0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.27%
Inst Owner Change3.7%
Ins Owners1.27%
Ins Owner Change-1.69%
Market Cap8.51B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (15.7%)
Short Float %11.63%
Short Ratio9.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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)31.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.98%
EPS NY rev (1m)-1.14%
EPS NY rev (3m)-7.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.87%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 49.78 | ||
| P/S | 9.17 | ||
| P/FCF | 14.42 | ||
| P/OCF | 12.65 | ||
| P/B | 7.74 | ||
| P/tB | 11.15 | ||
| EV/EBITDA | 11.22 |
EPS(TTM)14.82
EY4.48%
EPS(NY)6.64
Fwd EY2.01%
FCF(TTM)22.93
FCFY6.93%
OCF(TTM)26.15
OCFY7.91%
SpS36.08
BVpS42.73
TBVpS29.66
PEG (NY)N/A
PEG (5Y)0.28
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 | 7.99 |
F-Score9
WACC10.87%
ROIC/WACC3.39
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.
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 -1.45% 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 10.87%.