(IDCC) InterDigital - Overview
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 6.525m USD | Total Return: 17% in 12m
Avg Turnover: 82.4M
EPS Trend: 87.5%
Qual. Beats: 0
Rev. Trend: 89.8%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
InterDigital, Inc. (IDCC) is a research and development firm specializing in wireless communications, visual technologies, and artificial intelligence. The company designs and licenses fundamental intellectual property (IP) used in cellular networks, ranging from 2G to 5G and emerging 6G standards. Its technology portfolio is integrated into consumer electronics, Internet of Things (IoT) devices, automotive systems, and cloud-based streaming platforms.
The business model relies on a licensing-heavy structure where manufacturers pay royalties to access InterDigital’s extensive patent portfolio. In the communications equipment sector, these standard-essential patents (SEPs) are critical for hardware interoperability, ensuring that devices from different manufacturers can communicate across global networks. This focus on R&D rather than manufacturing allows the company to maintain high margins by monetizing its innovations through long-term licensing agreements with global electronics firms.
For a deeper look into the companys valuation metrics and historical performance, consider reviewing the detailed data available on ValueRay.
Headquartered in Wilmington, Delaware, InterDigital continues to expand its reach into video coding and machine learning. Its innovations support various applications, including autonomous vehicles, smart home infrastructure, and high-definition video conferencing services.
- Expansion of 5G and 6G patent licensing across mobile and IoT sectors
- Success of high-stakes patent litigation and arbitration against major handset manufacturers
- Growth in recurring royalty revenue from consumer electronics and connected vehicle markets
- Adoption of proprietary video coding and AI technologies by global streaming platforms
- Changes in global FRAND licensing regulations impacting royalty rate negotiations
| Net Income: 366.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.28 > 0.02 and ΔFCF/TA 20.19 > 1.0 |
| NWC/Revenue: 78.21% < 20% (prev 65.94%; Δ 12.27% < -1%) |
| CFO/TA 0.28 > 3% & CFO 580.5m > Net Income 366.4m |
| Net Debt (-676.7m) to EBITDA (527.4m): -1.28 < 3 |
| Current Ratio: 1.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (35.3m) vs 12m ago 5.30% < -2% |
| Gross Margin: 83.35% > 18% (prev 88.92%; Δ -5.57% > 0.5%) |
| Asset Turnover: 42.15% > 50% (prev 43.80%; Δ -1.65% > 0%) |
| Interest Coverage Ratio: 11.48 > 6 (EBIT TTM 449.6m / Interest Expense TTM 39.2m) |
| A: 0.31 (Total Current Assets 1.39b - Total Current Liabilities 738.3m) / Total Assets 2.07b |
| B: 1.05 (Retained Earnings 2.17b / Total Assets 2.07b) |
| C: 0.23 (EBIT TTM 449.6m / Avg Total Assets 1.97b) |
| D: 1.14 (Book Value of Equity 1.10b / Total Liabilities 967.1m) |
| Altman-Z'' = 8.20 = AAA |
| DSRI: 0.79 (Receivables 258.9m/321.2m, Revenue 828.9m/815.5m) |
| GMI: 1.07 (GM 88.92% / 83.35%) |
| AQI: 1.01 (AQ_t 0.31 / AQ_t-1 0.31) |
| SGI: 1.02 (Revenue 828.9m / 815.5m) |
| TATA: -0.10 (NI 366.4m - CFO 580.5m) / TA 2.07b) |
| Beneish M = -3.13 (Cap -4..+1) = AA |
As of June 04, 2026, the stock is trading at USD 256.64 with a total of 322,750 shares traded.
Over the past week, the price has changed by +1.66%,
over one month by -5.98%,
over three months by -30.63% and
over the past year by +16.96%.
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 | 80.3% |
P/E Trailing = 24.0429
P/E Forward = 28.7356
P/S = 7.8711
P/B = 5.9064
P/EG = 1.4455
Revenue TTM = 828.9m USD
EBIT TTM = 449.6m USD
EBITDA TTM = 527.4m USD
Long Term Debt = 10.5m USD (from longTermDebt, last quarter)
Short Term Debt = 377.8m USD (from shortTermDebt, last quarter)
Debt = 415.2m USD (from shortLongTermDebtTotal, last quarter) + Leases 13.4m
Net Debt = -676.7m USD (calculated: Debt 415.2m - CCE 1.09b)
Enterprise Value = 5.85b USD (6.52b + Debt 415.2m - CCE 1.09b)
Interest Coverage Ratio = 11.48 (Ebit TTM 449.6m / Interest Expense TTM 39.2m)
EV/FCF = 10.10x (Enterprise Value 5.85b / FCF TTM 579.0m)
FCF Yield = 9.90% (FCF TTM 579.0m / Enterprise Value 5.85b)
FCF Margin = 69.85% (FCF TTM 579.0m / Revenue TTM 828.9m)
Net Margin = 44.20% (Net Income TTM 366.4m / Revenue TTM 828.9m)
Gross Margin = 83.35% ((Revenue TTM 828.9m - Cost of Revenue TTM 138.0m) / Revenue TTM)
Gross Margin QoQ = 74.63% (prev 79.56%)
Tobins Q-Ratio = 2.82 (Enterprise Value 5.85b / Total Assets 2.07b)
Interest Expense / Debt = 9.43% (Interest Expense 39.2m / Debt 415.2m)
Taxrate = 12.14% (50.6m / 417.0m)
NOPAT = 395.0m (EBIT 449.6m * (1 - 12.14%))
Current Ratio = 1.88 (Total Current Assets 1.39b / Total Current Liabilities 738.3m)
Debt / Equity = 0.38 (Debt 415.2m / totalStockholderEquity, last quarter 1.10b)
Debt / EBITDA = -1.28 (Net Debt -676.7m / EBITDA 527.4m)
Debt / FCF = -1.17 (Net Debt -676.7m / FCF TTM 579.0m)
Total Stockholder Equity = 1.10b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.63% (Net Income 366.4m / Total Assets 2.07b)
RoE = 33.37% (Net Income TTM 366.4m / Total Stockholder Equity 1.10b)
RoCE = 40.56% (EBIT 449.6m / Capital Employed (Equity 1.10b + L.T.Debt 10.5m))
RoIC = 23.66% (NOPAT 395.0m / Invested Capital 1.67b)
WACC = 7.75% (E(6.52b)/V(6.94b) * Re(7.72%) + D(415.2m)/V(6.94b) * Rd(9.43%) * (1-Tc(0.12)))
Discount Rate = 7.72% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.89 | Cagr: 11.46%
[DCF] Terminal Value 77.97% ; FCFF base≈405.3m ; Y1≈464.6m ; Y5≈683.7m
[DCF] Fair Price = 424.3 (EV 10.3b - Net Debt -676.7m = Equity 11.0b / Shares 25.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 87.50 | EPS CAGR: 34.30% | SUE: 0.03 | # QB: 0
Revenue Correlation: 89.84 | Revenue CAGR: 22.38% | SUE: 0.18 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.52 | Chg30d=-31.77% | Revisions=-33% | Analysts=4
EPS next Quarter (2026-09-30): EPS=2.17 | Chg30d=-19.48% | Revisions=-33% | Analysts=3
EPS current Year (2026-12-31): EPS=9.62 | Chg30d=-2.41% | Revisions=-25% | GrowthEPS=-37.2% | GrowthRev=-15.3%
EPS next Year (2027-12-31): EPS=11.24 | Chg30d=-1.58% | Revisions=-14% | GrowthEPS=+16.9% | GrowthRev=+3.4%
[Analyst] Revisions Ratio: -33%