InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. More Details
Good value with adequate balance sheet.
Share Price & News
How has InterDigital's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IDCC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: IDCC's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: IDCC underperformed the US Software industry which returned 44.4% over the past year.
Return vs Market: IDCC underperformed the US Market which returned 52.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is InterDigital's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall StInterDigital, Inc.'s (NASDAQ:IDCC) Has Been On A Rise But Financial Prospects Look Weak: Is The Stock Overpriced?
4 weeks ago | Simply Wall StDon't Buy InterDigital, Inc. (NASDAQ:IDCC) For Its Next Dividend Without Doing These Checks
1 month ago | Simply Wall StCapital Allocation Trends At InterDigital (NASDAQ:IDCC) Aren't Ideal
Is InterDigital undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IDCC ($68.36) is trading below our estimate of fair value ($180.67)
Significantly Below Fair Value: IDCC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IDCC is good value based on its PE Ratio (47x) compared to the US Software industry average (50.8x).
PE vs Market: IDCC is poor value based on its PE Ratio (47x) compared to the US market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: IDCC is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: IDCC is good value based on its PB Ratio (2.7x) compared to the US Software industry average (7.8x).
How is InterDigital forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IDCC's forecast earnings growth (16.3% per year) is above the savings rate (2%).
Earnings vs Market: IDCC's earnings (16.3% per year) are forecast to grow faster than the US market (16% per year).
High Growth Earnings: IDCC's earnings are forecast to grow, but not significantly.
Revenue vs Market: IDCC's revenue (0.2% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: IDCC's revenue (0.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IDCC's Return on Equity is forecast to be low in 3 years time (9.4%).
How has InterDigital performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IDCC has a large one-off gain of $5.6M impacting its December 31 2020 financial results.
Growing Profit Margin: IDCC's current net profit margins (12.5%) are higher than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: IDCC's earnings have declined by 35% per year over the past 5 years.
Accelerating Growth: IDCC's earnings growth over the past year (113.7%) exceeds its 5-year average (-35% per year).
Earnings vs Industry: IDCC earnings growth over the past year (113.7%) exceeded the Software industry 21.8%.
Return on Equity
High ROE: IDCC's Return on Equity (4.8%) is considered low.
How is InterDigital's financial position?
Financial Position Analysis
Short Term Liabilities: IDCC's short term assets ($1.0B) exceed its short term liabilities ($295.8M).
Long Term Liabilities: IDCC's short term assets ($1.0B) exceed its long term liabilities ($523.9M).
Debt to Equity History and Analysis
Debt Level: IDCC's debt to equity ratio (46.2%) is considered high.
Reducing Debt: IDCC's debt to equity ratio has reduced from 92.4% to 46.2% over the past 5 years.
Debt Coverage: IDCC's debt is well covered by operating cash flow (44.4%).
Interest Coverage: IDCC's interest payments on its debt are not well covered by EBIT (1.6x coverage).
What is InterDigital current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IDCC's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: IDCC's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: IDCC's dividends per share have been stable in the past 10 years.
Growing Dividend: IDCC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (96.2%), IDCC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Liren Chen (49 yo)
Mr. Lawrence Chen, also known as Liren, serves as President, Chief Executive Officer and Director of InterDigital, Inc., since April 5, 2021. He was Senior Vice President and Global Head of IP, Legal Couns...
Experienced Management: IDCC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Experienced Board: IDCC's board of directors are considered experienced (5.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
InterDigital, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: InterDigital, Inc.
- Ticker: IDCC
- Exchange: NasdaqGS
- Founded: 1972
- Industry: Application Software
- Sector: Software
- Market Cap: US$2.106b
- Shares outstanding: 30.81m
- Website: https://www.interdigital.com
Number of Employees
- InterDigital, Inc.
- 200 Bellevue Parkway
- Suite 300
- United States
InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. It provides technology solutions for use in digital cellular a...
Company Analysis and Financial Data Status
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|Company Analysis||2021/05/05 23:06|
|End of Day Share Price||2021/05/05 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.