348.06 USD
-2.83 (-0.81%)
348.06 USD
0 (0%)
Overall IDCC gets a fundamental rating of 7 out of 10. We evaluated IDCC against 280 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. This makes IDCC very considerable 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.
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 23.22% is amongst the best of the industry. IDCC outperforms 96.43% of its industry peers.
With an excellent Return On Equity value of 45.16%, IDCC belongs to the best of the industry, outperforming 95.36% of the companies in the same industry.
IDCC has a Return On Invested Capital of 36.86%. This is amongst the best in the industry. IDCC outperforms 98.21% of its industry peers.
IDCC had an Average Return On Invested Capital over the past 3 years of 21.38%. This is significantly above the industry average of 10.73%.
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 better Profit Margin (53.50%) than 95.00% of its industry peers.
IDCC's Profit Margin has improved in the last couple of years.
IDCC has a better Operating Margin (61.99%) than 97.50% 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.
The number of shares outstanding for IDCC has been increased compared to 1 year ago.
The number of shares outstanding for IDCC has been reduced compared to 5 years ago.
The debt/assets ratio for IDCC has been reduced compared to a year ago.
2.2 Solvency
IDCC has an Altman-Z score of 8.25. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.25, IDCC belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
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 has a Debt to FCF ratio of 0.80. This is in the better half of the industry: IDCC outperforms 76.43% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that IDCC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.02, IDCC is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 8.25 |
ROIC/WACC3.42
WACC10.79%
2.3 Liquidity
IDCC has a Current 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 Current ratio of IDCC (1.89) is comparable to the rest of the industry.
A Quick Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
IDCC's Quick ratio of 1.89 is in line compared to the rest of the industry. IDCC outperforms 58.21% of its industry peers.
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
The Earnings Per Share has grown by an impressive 58.33% over the past year.
IDCC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 78.74% yearly.
IDCC shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.75%.
Measured over the past years, IDCC shows a very strong growth in Revenue. The Revenue has been growing by 22.19% on average per year.
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
The Earnings Per Share is expected to decrease by -11.88% on average over the next years. This is quite bad
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
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
The Price/Earnings ratio is 23.49, which indicates a rather expensive current valuation of IDCC.
Based on the Price/Earnings ratio, IDCC is valued a bit cheaper than 69.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of IDCC to the average of the S&P500 Index (26.43), we can say IDCC is valued inline with the index average.
IDCC is valuated quite expensively with a Price/Forward Earnings ratio of 52.40.
IDCC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of IDCC to the average of the S&P500 Index (23.66), we can say IDCC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 52.4 |
4.2 Price Multiples
IDCC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IDCC is cheaper than 86.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued cheaply inside the industry as 86.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.18 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
IDCC has an outstanding profitability rating, which 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)0.3
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, IDCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.91, IDCC pays a better dividend. On top of this IDCC pays more dividend than 91.07% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.26%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
IDCC pays out 10.87% of its income as dividend. This is a sustainable payout ratio.
DP10.87%
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
348.06
-2.83 (-0.81%)
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-1.7%
Market Cap8.96B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (9.92%)
Short Float %11.63%
Short Ratio9.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)13.49%
PT rev (3m)31.29%
EPS NQ rev (1m)-3.22%
EPS NQ rev (3m)-28.98%
EPS NY rev (1m)-1.14%
EPS NY rev (3m)-0.7%
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 | 23.49 | ||
| Fwd PE | 52.4 | ||
| P/S | 9.65 | ||
| P/FCF | 15.18 | ||
| P/OCF | 13.31 | ||
| P/B | 8.14 | ||
| P/tB | 11.73 | ||
| EV/EBITDA | 11.9 |
EPS(TTM)14.82
EY4.26%
EPS(NY)6.64
Fwd EY1.91%
FCF(TTM)22.93
FCFY6.59%
OCF(TTM)26.15
OCFY7.51%
SpS36.08
BVpS42.73
TBVpS29.66
PEG (NY)N/A
PEG (5Y)0.3
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 | 8.25 |
F-Score9
WACC10.79%
ROIC/WACC3.42
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%.