InterDigital, Inc.
InterDigital, Inc. Fundamental Analysis
InterDigital, Inc. (IDCC) shows moderate financial fundamentals with a PE ratio of 22.83, profit margin of 48.76%, and ROE of 38.50%. The company generates $0.8B in annual revenue with weak year-over-year growth of -3.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze IDCC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIDCC demonstrates superior asset utilization.
Valuation Score
ExcellentIDCC trades at attractive valuation levels.
Growth Score
ModerateIDCC shows steady but slowing expansion.
Financial Health Score
ExcellentIDCC maintains a strong and stable balance sheet.
Profitability Score
ExcellentIDCC achieves industry-leading margins.
Key Financial Metrics
Is IDCC Expensive or Cheap?
P/E Ratio
IDCC trades at 22.83 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IDCC's PEG of -1.24 indicates potential undervaluation.
Price to Book
The market values InterDigital, Inc. at 8.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.25 times EBITDA. This signals the market has high growth expectations.
How Well Does IDCC Make Money?
Net Profit Margin
For every $100 in sales, InterDigital, Inc. keeps $48.76 as profit after all expenses.
Operating Margin
Core operations generate 55.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $38.50 in profit for every $100 of shareholder equity.
ROA
InterDigital, Inc. generates $19.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
InterDigital, Inc. generates strong operating cash flow of $544.89M, reflecting robust business health.
Free Cash Flow
InterDigital, Inc. generates strong free cash flow of $529.79M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $20.58 in free cash annually.
FCF Yield
IDCC converts 5.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.35
vs 25 benchmark
How IDCC Stacks Against Its Sector Peers
| Metric | IDCC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.83 | 35.19 | Better (Cheaper) |
| ROE | 38.50% | 1155.00% | Weak |
| Net Margin | 48.76% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.46 | 0.41 | Neutral |
| Current Ratio | 1.74 | 4.71 | Neutral |
| ROA | 19.70% | -314918.00% (disorted) | Strong |
IDCC outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews InterDigital, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
177.19%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
982.98%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
297.39%
Industry Style: Growth, Innovation, High Beta
High Growth