InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally.
Reasonable growth potential and slightly overvalued.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: IDCC underperformed the US Communications industry which returned -7.3% over the past year.
Return vs Market: IDCC underperformed the US Market which returned 20.3% over the past year.
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
2 days ago | Simply Wall StHow Many InterDigital, Inc. (NASDAQ:IDCC) Shares Do Institutions Own?
2 weeks ago | Simply Wall StDoes The InterDigital, Inc. (NASDAQ:IDCC) Share Price Fall With The Market?
1 month ago | Simply Wall StIs InterDigital, Inc. (NASDAQ:IDCC) Overpaying Its CEO?
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 ($58.86) is trading below our estimate of fair value ($140.94)
Significantly Below Fair Value: IDCC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IDCC is poor value based on its PE Ratio (234.8x) compared to the Communications industry average (24.5x).
PE vs Market: IDCC is poor value based on its PE Ratio (234.8x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: IDCC is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: IDCC is overvalued based on its PB Ratio (2.3x) compared to the US Communications industry average (1.8x).
How is InterDigital forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IDCC's forecast earnings growth (87.6% per year) is above the savings rate (1.7%).
Earnings vs Market: IDCC's earnings (87.6% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: IDCC's revenue (8.1% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: IDCC's revenue (8.1% 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 (11.5%).
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 $20.4M impacting its September 30 2019 financial results.
Growing Profit Margin: IDCC's current net profit margins (2.8%) are lower than last year (26.4%).
Past Earnings Growth Analysis
Earnings Trend: IDCC's earnings have declined by -7.4% per year over the past 5 years.
Accelerating Growth: IDCC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IDCC had negative earnings growth (-93%) over the past year, making it difficult to compare to the Communications industry average (-20.3%).
Return on Equity
High ROE: IDCC's Return on Equity (0.5%) is considered low.
Return on Assets
Return on Capital Employed
How is InterDigital's financial position?
Financial Position Analysis
Short Term Liabilities: IDCC's short term assets ($1.0B) exceed its short term liabilities ($334.3M).
Long Term Liabilities: IDCC's short term assets ($1.0B) exceed its long term liabilities ($490.7M).
Debt to Equity History and Analysis
Debt Level: IDCC's debt to equity ratio (54.7%) is considered high.
Reducing Debt: IDCC's debt to equity ratio has increased from 40.7% to 54.7% over the past 5 years.
Debt Coverage: IDCC's debt is not well covered by operating cash flow (9.6%).
Interest Coverage: IDCC's interest payments on its debt are not well covered by EBIT (0.7x coverage).
Inventory Level: IDCC has a low level of unsold assets or inventory.
Debt Coverage by Assets: IDCC's debt is covered by short term assets (assets are 2.3x debt).
What is InterDigital's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: IDCC's dividend (2.38%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: IDCC's dividend (2.38%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, IDCC has been paying a dividend for less than 10 years.
Growing Dividend: IDCC's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (558.6%), IDCC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
William Merritt (60yo)
Mr. William J. Merritt, also known as Bill, has been the Chief Executive Officer and President of InterDigital, Inc. since May 2, 2005. Mr. Merritt serves as the Chief Executive Officer and President of In ...
CEO Compensation Analysis
Compensation vs Market: William's total compensation ($USD3.01M) is about average for companies of similar size in the US market ($USD3.82M).
Compensation vs Earnings: William's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CFO & Treasurer||7.8yrs||US$919.53k||0.15% $2.7m|
|Chief Operating Officer||1.3yrs||US$2.55m||0.079% $1.4m|
|Executive VP of Business Development & President of the InterDigital China||1.3yrs||US$316.46k||no data|
|Chief Technology Officer||1.8yrs||no data||no data|
|Chief Legal Officer||0.08yrs||no data||no data|
|Chief Communications Officer||0yrs||no data||no data|
|Chief Human Resources Officer||0.3yrs||no data||no data|
|Executive Vice President of Products||13yrs||US$1.32m||0.14% $2.5m|
|Executive VP & Chief Public Policy Officer||0yrs||no data||no data|
Experienced Management: IDCC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
|Independent Director||3.3yrs||US$221.26k||0.026% $478.5k|
|Independent Director||4yrs||US$221.26k||0.045% $827.0k|
|Independent Director||9.7yrs||US$229.55k||0.065% $1.2m|
|Independent Director||10.7yrs||US$240.55k||0.040% $726.6k|
|Member of Technical Advisory Council||9.7yrs||no data||no data|
|Member of Technical Advisory Council||4.4yrs||no data||no data|
|Independent Director||2.8yrs||US$224.55k||0.0010% $19.1k|
|Member of Technical Advisory Council||1.8yrs||no data||no data|
Experienced Board: IDCC's board of directors are considered experienced (4.5 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: Communications Equipment
- Sector: Tech
- Market Cap: US$1.832b
- Shares outstanding: 31.13m
- Website: https://www.interdigital.com
Number of Employees
- InterDigital, Inc.
- 200 Bellevue Parkway
- Suite 300
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|IDI||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Nov 1981|
|IDCC||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Nov 1981|
|0U3Q||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Nov 1981|
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 and wireless products and networks, including 2G, 3G, 4G and IEEE 802-related products and networks. The company develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, and 4G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G NR, LTE-Advanced, and cellular Internet of Things (IoT) areas, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. It also provides video encoding and transmission technologies; technologies to enable interconnection for various access types comprising cellular, WLAN, and LPWA, as well as IoT service frameworks; interoperability and scalability solutions through oneMPOWER platform; and oneTRANSPORT data marketplace that offers common interface to vraious service providers allowing public authorities to control and monetize, and companies to access IoT data in real-time. In addition, the company engages in the development of technologies in the areas of security and analytics, sensor technologies, and other areas. Its patented technologies are used in various products that include cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, which comprise base stations; components, dongles, and modules for wireless devices; and IoT devices and software platforms. As of December 31, 2018, the company had a portfolio of approximately 34,000 patents and patent applications related fundamental technologies that enable wireless communications, video encoding, display technology, and other areas. InterDigital, Inc. was founded in 1972 and is headquartered in Wilmington, Delaware.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 01:20|
|End of Day Share Price||2020/02/19 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.