IDCC Stock Analysis: InterDigital | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 8.415m USD | 12M Return: -5.7% | US45867G1013 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 66.0M
EPS Trend: 66.0%
Qual. Beats: 1
Rev. Trend: 80.1%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 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 global research and development company headquartered in Wilmington, Delaware, founded in 1972. The company focuses on developing wireless, visual, and artificial intelligence technologies, which it licenses to manufacturers of smartphones, tablets, consumer electronics, IoT devices, connected vehicles, and to providers of cloud-based services such as video streaming. Its technology portfolio spans cellular standards from 2G through 5G, with active development in 5G Advanced and 6G, and includes video coding, transmission, and machine learning solutions.
InterDigital operates a patent licensing business model, generating revenue primarily through royalties on its innovations rather than by manufacturing products itself. The company contributes to standard-setting bodies such as 3GPP, which governs global cellular standards, allowing its patented technologies to be incorporated into widely adopted wireless specifications. Classified within the Information Technology sector under Communications Equipment, InterDigital is a mid-cap stock with a market capitalization of approximately $8.4 billion USD and has been publicly traded since 1990.
- Smartphone royalty revenue grows on rising global device shipments
- Patent litigation outcomes with major OEMs reshape licensing income
- Capital return program accelerates with expanded share repurchase authorization
| 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 October 09, 2026, the stock is trading at USD 328.30 with a total of 178,230 shares traded. Over the past week, the price has changed by -3.42%, over one month by -3.71%, over three months by +22.61% and over the past year by -5.66%.
Current recommended Stop Loss: 315.90 (which is 3.8% or 1.1 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 | 40.9% |
P/E Trailing = 38.3612
P/E Forward = 29.8507
P/S = 10.6716
P/B = 7.0098
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 = 7.72b USD (8.41b + Debt 414.0m - CCE 1.11b)
Interest Coverage Ratio = 9.81 (Ebit TTM 374.8m / Interest Expense TTM 38.2m)
EV/FCF = 14.28x (Enterprise Value 7.72b / FCF TTM 540.3m)
FCF Yield = 7.00% (FCF TTM 540.3m / Enterprise Value 7.72b)
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 = 3.52 (Enterprise Value 7.72b / 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 = 10.23% (E(8.41b)/V(8.83b) * Re(10.34%) + D(414.0m)/V(8.83b) * Rd(9.23%) * (1-Tc(0.14)))
Discount Rate = 10.34% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 90.16 | Cagr: 8.80%
[DCF] Terminal Value 72.14% ; FCFF base≈438.7m ; Y1≈502.9m ; Y5≈740.2m
[DCF] Fair Price = 351.1 (EV 8.36b - Net Debt -698.4m = Equity 9.06b / Shares 25.8m; r=10.23% [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=+0.00% | Revisions=+0% | Analysts=4
EPS current Year (2026-12-31): EPS=11.55 | Chg30d=+0.00% | Revisions=+40% | GrowthEPS=-24.5% | GrowthRev=-4.5%
EPS next Year (2027-12-31): EPS=11.59 | Chg30d=+0.00% | Revisions=-17% | GrowthEPS=+0.3% | GrowthRev=-5.3%
[Analyst] Revisions Ratio: +10% (up=4, down=3)