INTERDIGITAL INC (IDCC) Stock Fundamental Analysis
USA - NASDAQ:IDCC - US45867G1013 - Common Stock
339.21 USD
+12.04 (+3.68%)
339.21 USD
0 (0%)
IDCC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. IDCC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IDCC is not valued too expensively and it also shows a decent growth rate. This makes IDCC very considerable for quality 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.
IDCC had positive earnings in each of the past 5 years.
IDCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 23.35%, IDCC belongs to the best of the industry, outperforming 96.07% of the companies in the same industry.
IDCC has a better Return On Equity (42.65%) than 94.64% of its industry peers.
IDCC has a better Return On Invested Capital (36.65%) than 98.21% 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 11.76%.
The 3 year average ROIC (21.38%) for IDCC is below the current ROIC(36.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 42.65% | ||
| ROIC | 36.65% |
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
With an excellent Profit Margin value of 51.92%, IDCC belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
In the last couple of years the Profit Margin of IDCC has grown nicely.
The Operating Margin of IDCC (60.40%) is better than 97.86% of its industry peers.
In the last couple of years the Operating Margin of IDCC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.4% | ||
| PM (TTM) | 51.92% | ||
| 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
IDCC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, IDCC has an improved debt to assets ratio.
2.2 Solvency
IDCC has an Altman-Z score of 9.04. This indicates that IDCC is financially healthy and has little risk of bankruptcy at the moment.
IDCC's Altman-Z score of 9.04 is amongst the best of the industry. IDCC outperforms 81.79% of its industry peers.
The Debt to FCF ratio of IDCC is 1.72, which is an excellent value as it means it would take IDCC, only 1.72 years of fcf income to pay off all of its debts.
IDCC has a better Debt to FCF ratio (1.72) than 68.93% 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.
The Debt to Equity ratio of IDCC (0.02) is better than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 9.04 |
ROIC/WACC3.36
WACC10.9%
2.3 Liquidity
IDCC has a Current Ratio of 1.96. 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 1.96, IDCC is in the better half of the industry, outperforming 61.07% of the companies in the same industry.
A Quick Ratio of 1.96 indicates that IDCC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.96, IDCC is doing good in the industry, outperforming 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.15% 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 78.74% on average per year.
The Revenue has grown by 21.83% in the past year. This is a very strong growth!
The Revenue has been growing by 22.19% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)41.15%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%36.13%
Revenue 1Y (TTM)21.83%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%34.5%
3.2 Future
Based on estimates for the next years, IDCC will show a decrease in Earnings Per Share. The EPS will decrease by -8.78% on average per year.
The Revenue is expected to decrease by -2.62% on average over the next years.
EPS Next Y-0.75%
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
EPS Next 5YN/A
Revenue Next Year-4.18%
Revenue Next 2Y-12.36%
Revenue Next 3Y-2.62%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.18 indicates a rather expensive valuation of IDCC.
Based on the Price/Earnings ratio, IDCC is valued a bit cheaper than the industry average as 71.79% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.41, IDCC is valued at the same level.
A Price/Forward Earnings ratio of 47.54 indicates a quite expensive valuation of IDCC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IDCC is on the same level as its industry peers.
IDCC is valuated expensively when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 47.54 |
4.2 Price Multiples
IDCC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IDCC is cheaper than 88.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IDCC is valued a bit cheaper than 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.92 | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
IDCC has an outstanding profitability rating, which may justify a higher PE ratio.
IDCC's earnings are expected to decrease with -8.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, IDCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 40.27, IDCC pays a better dividend. On top of this IDCC pays more dividend than 92.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of IDCC has a limited annual growth rate of 3.26%.
IDCC has paid a dividend for at least 10 years, which is 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 10.48% of its income as dividend. This is a sustainable payout ratio.
DP10.48%
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
339.21
+12.04 (+3.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners102.64%
Inst Owner Change-3.53%
Ins Owners1.29%
Ins Owner Change4.72%
Market Cap8.75B
Analysts80
Price Target291.41 (-14.09%)
Short Float %7.48%
Short Ratio6.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.48%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.21%
Min EPS beat(2)13.22%
Max EPS beat(2)91.19%
EPS beat(4)3
Avg EPS beat(4)116.84%
Min EPS beat(4)-2.73%
Max EPS beat(4)365.69%
EPS beat(8)7
Avg EPS beat(8)219.54%
EPS beat(12)11
Avg EPS beat(12)195.46%
EPS beat(16)14
Avg EPS beat(16)158.5%
Revenue beat(2)2
Avg Revenue beat(2)36.94%
Min Revenue beat(2)0.55%
Max Revenue beat(2)73.32%
Revenue beat(4)4
Avg Revenue beat(4)26.71%
Min Revenue beat(4)0.55%
Max Revenue beat(4)73.32%
Revenue beat(8)7
Avg Revenue beat(8)33.38%
Revenue beat(12)10
Avg Revenue beat(12)30.78%
Revenue beat(16)14
Avg Revenue beat(16)24.75%
PT rev (1m)13.22%
PT rev (3m)45.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.1%
EPS NY rev (1m)28.79%
EPS NY rev (3m)33.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)17.04%
Revenue NY rev (3m)16.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 47.54 | ||
| P/S | 9.8 | ||
| P/FCF | 31.92 | ||
| P/OCF | 24.67 | ||
| P/B | 8.05 | ||
| P/tB | 11.73 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)14.03
EY4.14%
EPS(NY)7.13
Fwd EY2.1%
FCF(TTM)10.63
FCFY3.13%
OCF(TTM)13.75
OCFY4.05%
SpS34.6
BVpS42.12
TBVpS28.93
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.35% | ||
| ROE | 42.65% | ||
| ROCE | 42.26% | ||
| ROIC | 36.65% | ||
| ROICexc | 137.99% | ||
| ROICexgc | N/A | ||
| OM | 60.4% | ||
| PM (TTM) | 51.92% | ||
| GM | N/A | ||
| FCFM | 30.72% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 110.44% | ||
| Cap/Sales | 9.03% | ||
| Interest Coverage | 33.49 | ||
| Cash Conversion | 57.96% | ||
| Profit Quality | 59.16% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 9.04 |
F-Score8
WACC10.9%
ROIC/WACC3.36
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)41.15%
EPS 3Y78.98%
EPS 5Y78.74%
EPS Q2Q%36.13%
EPS Next Y-0.75%
EPS Next 2Y-23.02%
EPS Next 3Y-8.78%
EPS Next 5YN/A
Revenue 1Y (TTM)21.83%
Revenue growth 3Y26.86%
Revenue growth 5Y22.19%
Sales Q2Q%34.5%
Revenue Next Year-4.18%
Revenue Next 2Y-12.36%
Revenue Next 3Y-2.62%
Revenue Next 5YN/A
EBIT growth 1Y70.25%
EBIT growth 3Y64.3%
EBIT growth 5Y63.34%
EBIT Next Year18.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y23.4%
FCF growth 3Y31.31%
FCF growth 5Y32.33%
OCF growth 1Y34.19%
OCF growth 3Y27.7%
OCF growth 5Y24.88%