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Market Cap

US$2.1b

Last Updated

2021/05/07 03:28 UTC

Data Sources

Company Financials +

Executive Summary

InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. More Details


Snowflake Analysis

Undervalued with proven track record and pays a dividend.


Similar Companies

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.


Market Performance


7 Day Return

-2.7%

IDCC

-4.2%

US Software

-1.7%

US Market


1 Year Return

24.6%

IDCC

39.5%

US Software

51.8%

US Market

Return vs Industry: IDCC underperformed the US Software industry which returned 39.5% over the past year.

Return vs Market: IDCC underperformed the US Market which returned 51.8% over the past year.


Shareholder returns

IDCCIndustryMarket
7 Day-2.7%-4.2%-1.7%
30 Day4.8%-1.8%1.5%
90 Day5.2%-5.3%3.1%
1 Year27.3%24.6%40.5%39.5%54.4%51.8%
3 Year-7.1%-13.1%123.9%117.3%63.0%52.8%
5 Year39.8%26.6%301.5%279.7%127.2%101.9%

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

Valuation

Is InterDigital undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IDCC ($69.32) is trading below our estimate of fair value ($180.07)

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 (42.5x) compared to the US Software industry average (49.8x).

PE vs Market: IDCC is poor value based on its PE Ratio (42.5x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: IDCC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: IDCC is good value based on its PB Ratio (3x) compared to the US Software industry average (7.7x).


Future Growth

How is InterDigital forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

46.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IDCC's forecast earnings growth (46% per year) is above the savings rate (2%).

Earnings vs Market: IDCC's earnings (46% per year) are forecast to grow faster than the US market (15.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IDCC's revenue (3.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: IDCC's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IDCC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has InterDigital performed over the past 5 years?

-39.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IDCC has high quality earnings.

Growing Profit Margin: IDCC's current net profit margins (13.8%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: IDCC's earnings have declined by 39.6% per year over the past 5 years.

Accelerating Growth: IDCC's earnings growth over the past year (110.7%) exceeds its 5-year average (-39.6% per year).

Earnings vs Industry: IDCC earnings growth over the past year (110.7%) exceeded the Software industry 21.4%.


Return on Equity

High ROE: IDCC's Return on Equity (5.9%) is considered low.


Financial Health

How is InterDigital's financial position?


Financial Position Analysis

Short Term Liabilities: IDCC's short term assets ($984.9M) exceed its short term liabilities ($253.2M).

Long Term Liabilities: IDCC's short term assets ($984.9M) exceed its long term liabilities ($576.1M).


Debt to Equity History and Analysis

Debt Level: IDCC's debt to equity ratio (53.7%) is considered high.

Reducing Debt: IDCC's debt to equity ratio has increased from 52% to 53.7% over the past 5 years.

Debt Coverage: IDCC's debt is well covered by operating cash flow (45.9%).

Interest Coverage: IDCC's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

What is InterDigital current dividend yield, its reliability and sustainability?

2.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IDCC's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: IDCC's dividend (2.02%) 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: At its current payout ratio (85.8%), IDCC's payments are 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Liren Chen (49 yo)

0.083

Tenure

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...


Leadership Team

Experienced Management: IDCC's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: IDCC's board of directors are considered experienced (5.5 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

InterDigital, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • InterDigital, Inc.
  • 200 Bellevue Parkway
  • Suite 300
  • Wilmington
  • Delaware
  • 19809-3727
  • United States

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 03:28
End of Day Share Price2021/05/06 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.