303.77 USD
-4.99 (-1.62%)
Taking everything into account, IDCC scores 7 out of 10 in our fundamental rating. IDCC was compared to 277 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.
- IDCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- IDCC's Return On Assets of 23.22% is amongst the best of the industry. IDCC outperforms 96.75% of its industry peers.
- Looking at the Return On Equity, with a value of 45.16%, IDCC belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
- IDCC has a better Return On Invested Capital (36.86%) than 98.19% 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 10.78%.
- The last Return On Invested Capital (36.86%) for IDCC is above the 3 year average (21.38%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 53.50%, IDCC belongs to the top of the industry, outperforming 93.86% of the companies in the same industry.
- IDCC's Profit Margin has improved in the last couple of years.
- IDCC has a better Operating Margin (61.99%) than 97.47% of its industry peers.
- IDCC's Operating Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
- The debt/assets ratio for IDCC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.67 indicates that IDCC is not in any danger for bankruptcy at the moment.
- The Altman-Z score of IDCC (7.67) is better than 83.75% 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 has a better Debt to FCF ratio (0.80) than 76.53% of its industry peers.
- A Debt/Equity ratio of 0.02 indicates that IDCC is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.02, IDCC is doing good in the industry, outperforming 63.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 7.67 |
ROIC/WACC3.36
WACC10.97%
2.3 Liquidity
- A Current Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
- IDCC has a Current ratio (1.89) which is in line with its industry peers.
- A Quick Ratio of 1.89 indicates that IDCC should not have too much problems paying its short term obligations.
- IDCC has a Quick ratio (1.89) which is in line with its industry peers.
- IDCC does not score too well on the current and quick ratio evaluation. However, as it has 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.
- The Revenue has grown by 28.75% 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)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
- Based on estimates for the next years, IDCC will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.88% on average per year.
- The Revenue is expected to decrease by -5.95% on average over the next years.
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 20.50, which indicates a rather expensive current valuation of IDCC.
- Based on the Price/Earnings ratio, IDCC is valued a bit cheaper than the industry average as 74.01% of the companies are valued more expensively.
- IDCC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- IDCC is valuated quite expensively with a Price/Forward Earnings ratio of 45.73.
- IDCC's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, IDCC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 45.73 |
4.2 Price Multiples
- 87.36% of the companies in the same industry are more expensive than IDCC, based on the Enterprise Value to EBITDA ratio.
- IDCC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IDCC is cheaper than 86.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.25 | ||
| EV/EBITDA | 10.35 |
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)0.26
EPS Next 2Y-25.72%
EPS Next 3Y-11.88%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.90%, IDCC is not a good candidate for dividend investing.
- IDCC's Dividend Yield is rather good when compared to the industry average which is at 0.52. IDCC pays more dividend than 91.70% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, IDCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
- 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%
NASDAQ:IDCC (1/20/2026, 2:08:57 PM)
303.77
-4.99 (-1.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-05 2026-02-05/bmo
Inst Owners105.44%
Inst Owner Change1.3%
Ins Owners1.26%
Ins Owner Change-4.3%
Market Cap7.82B
Revenue(TTM)928.59M
Net Income(TTM)496.78M
Analysts83.33
Price Target382.6 (25.95%)
Short Float %12.26%
Short Ratio11.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend1.63
Dividend Growth(5Y)3.26%
DP10.87%
Div Incr Years2
Div Non Decr Years11
Ex-Date01-14 2026-01-14 (0.7)
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)21.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 45.73 | ||
| P/S | 8.42 | ||
| P/FCF | 13.25 | ||
| P/OCF | 11.62 | ||
| P/B | 7.11 | ||
| P/tB | 10.24 | ||
| EV/EBITDA | 10.35 |
EPS(TTM)14.82
EY4.88%
EPS(NY)6.64
Fwd EY2.19%
FCF(TTM)22.93
FCFY7.55%
OCF(TTM)26.15
OCFY8.61%
SpS36.08
BVpS42.73
TBVpS29.66
PEG (NY)N/A
PEG (5Y)0.26
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 | 7.67 |
F-Score9
WACC10.97%
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)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.
Can you provide the valuation status for INTERDIGITAL INC?
ChartMill assigns a valuation rating of 5 / 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.
How financially healthy is INTERDIGITAL INC?
The financial health rating of INTERDIGITAL INC (IDCC) is 8 / 10.
How sustainable is the dividend of INTERDIGITAL INC (IDCC) stock?
The dividend rating of INTERDIGITAL INC (IDCC) is 5 / 10 and the dividend payout ratio is 10.87%.