IDCC Stock Analysis: InterDigital | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 8.892m USD | 12M Return: 29.6% | US45867G1013 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 70.5M
EPS Trend: 66.0%
Qual. Beats: 1
Rev. Trend: 80.1%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
InterDigital, Inc. (NASDAQ: IDCC) is a research and development company that designs and develops wireless, video, and artificial intelligence technologies, which it licenses to manufacturers and service providers globally. Its patent portfolio spans cellular standards including CDMA, TDMA, OFDM/OFDMA, and MIMO, covering 2G through 5G networks, as well as ongoing work in 3GPP 5G-Advanced and 6G specifications.
Licensees and end-product applications include smartphones, tablets, laptops, gaming consoles, set-top boxes, televisions, base stations, IoT devices, wearables, and connected vehicles. The companys video coding, transmission, AI, and machine learning technologies are also used in cloud-based services such as video streaming, video conferencing, user-generated content sharing, and cloud gaming.
InterDigitals core business model is patent licensing and intellectual property monetization, rather than the manufacturing or sale of physical communications equipment. This positions it within the Communications Equipment sub-industry (GICS) but as an IP-focused entity that earns revenue primarily through royalty agreements with device makers and service providers rather than hardware sales.
The company was incorporated in 1972 and is headquartered in Wilmington, Delaware. It trades as a U.S. mid-cap stock in the Information Technology sector and has been publicly listed since its 1990 IPO.
- 5G and 6G patent licensing renewals anchor recurring royalty revenue
- Smartphone OEM agreements with Apple and Samsung underpin base
- Video codec licensing (HEVC/VVC) grows as streaming penetration deepens
| Net Income: 302.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.25 > 0.02 and ΔFCF/TA 10.22 > 1.0 |
| NWC/Revenue: 75.52% < 20% (prev 75.91%; Δ -0.39% < -1%) |
| CFO/TA 0.25 > 3% & CFO 557.9m > Net Income 302.2m |
| Net Debt (-698.4m) to EBITDA (452.6m): -1.54 < 3 |
| Current Ratio: 1.74 > 1.5 & < 3 |
| Outstanding Shares: last quarter (34.3m) vs 12m ago 2.25% < -2% |
| Gross Margin: 78.66% > 18% (prev 90.02%; Δ -11.36% > 0.5%) |
| Asset Turnover: 37.76% > 50% (prev 44.97%; Δ -7.22% > 0%) |
| Interest Coverage Ratio: 9.81 > 6 (EBIT TTM 374.8m / Interest Expense TTM 38.2m) |
| A: 0.27 (Total Current Assets 1.40b - Total Current Liabilities 801.1m) / Total Assets 2.19b |
| B: 1.03 (Retained Earnings 2.27b / Total Assets 2.19b) |
| C: 0.18 (EBIT TTM 374.8m / Avg Total Assets 2.09b) |
| D: 1.21 (Book Value of Equity 1.20b / Total Liabilities 989.9m) |
| Altman-Z'' = 7.64 = AAA |
| DSRI: 0.68 (Receivables 248.6m/412.5m, Revenue 788.5m/892.6m) |
| GMI: 1.14 (GM 90.02% / 78.66%) |
| AQI: 1.26 (AQ_t 0.35 / AQ_t-1 0.28) |
| SGI: 0.88 (Revenue 788.5m / 892.6m) |
| TATA: -0.12 (NI 302.2m - CFO 557.9m) / TA 2.19b) |
| Beneish M = -3.10 (Cap -4..+1) = AA |
As of August 13, 2026, the stock is trading at USD 351.43 with a total of 163,726 shares traded. Over the past week, the price has changed by +6.32%, over one month by +34.38%, over three months by +30.58% and over the past year by +29.60%.
Current recommended Stop Loss: 328.90 (which is 6.4% or 1.8 ATR below the current price).
InterDigital has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy IDCC.
- StrongBuy: 2
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 462.7 | 31.7% |
P/E Trailing = 40.4888
P/E Forward = 43.1034
P/S = 11.2768
P/B = 7.3964
P/EG = 1.3155
Revenue TTM = 788.5m USD
EBIT TTM = 374.8m USD
EBITDA TTM = 452.6m USD
Long Term Debt = 10.9m USD (from longTermDebt, last quarter)
Short Term Debt = 378.2m USD (from shortTermDebt, last quarter)
Debt = 414.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 12.4m
Net Debt = -698.4m USD (calculated: Debt 414.0m - CCE 1.11b)
Enterprise Value = 8.19b USD (8.89b + Debt 414.0m - CCE 1.11b)
Interest Coverage Ratio = 9.81 (Ebit TTM 374.8m / Interest Expense TTM 38.2m)
EV/FCF = 15.16x (Enterprise Value 8.19b / FCF TTM 540.3m)
FCF Yield = 6.59% (FCF TTM 540.3m / Enterprise Value 8.19b)
FCF Margin = 68.53% (FCF TTM 540.3m / Revenue TTM 788.5m)
Net Margin = 38.32% (Net Income TTM 302.2m / Revenue TTM 788.5m)
Gross Margin = 78.66% ((Revenue TTM 788.5m - Cost of Revenue TTM 168.3m) / Revenue TTM)
Gross Margin QoQ = 79.16% (prev 74.63%)
Tobins Q-Ratio = 3.74 (Enterprise Value 8.19b / Total Assets 2.19b)
Interest Expense / Debt = 9.23% (Interest Expense 38.2m / Debt 414.0m)
Taxrate = 13.50% (47.2m / 349.4m)
NOPAT = 324.2m (EBIT 374.8m * (1 - 13.50%))
Current Ratio = 1.74 (Total Current Assets 1.40b / Total Current Liabilities 801.1m)
Debt / Equity = 0.34 (Debt 414.0m / totalStockholderEquity, last quarter 1.20b)
Debt / EBITDA = -1.54 (Net Debt -698.4m / EBITDA 452.6m)
Debt / FCF = -1.29 (Net Debt -698.4m / FCF TTM 540.3m)
Total Stockholder Equity = 1.13b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.47% (Net Income 302.2m / Total Assets 2.19b)
RoE = 26.82% (Net Income TTM 302.2m / Total Stockholder Equity 1.13b)
RoCE = 32.95% (EBIT 374.8m / Capital Employed (Equity 1.13b + L.T.Debt 10.9m))
RoIC = 18.74% (NOPAT 324.2m / Invested Capital 1.73b)
WACC = 10.11% (E(8.89b)/V(9.31b) * Re(10.21%) + D(414.0m)/V(9.31b) * Rd(9.23%) * (1-Tc(0.14)))
Discount Rate = 10.21% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 90.16 | Cagr: 8.80%
[DCF] Terminal Value 72.49% ; FCFF base≈438.7m ; Y1≈502.9m ; Y5≈740.2m
[DCF] Fair Price = 356.3 (EV 8.50b - Net Debt -698.4m = Equity 9.19b / Shares 25.8m; r=10.11% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 66.02 | EPS CAGR: 21.84% | SUE: 1.75 | # QB: 1
Revenue Correlation: 80.07 | Revenue CAGR: 17.26% | SUE: 2.44 | # QB: 1
EPS current Quarter (2026-09-30): EPS=2.00 | Chg30d=-7.72% | Revisions=-40% | Analysts=4
EPS current Year (2026-12-31): EPS=11.55 | Chg30d=+20.18% | Revisions=-29% | GrowthEPS=-24.5% | GrowthRev=-4.5%
EPS next Year (2027-12-31): EPS=11.59 | Chg30d=+3.07% | Revisions=-17% | GrowthEPS=+0.3% | GrowthRev=-5.3%
[Analyst] Revisions Ratio: -42% (up=2, down=7)