IDCC Stock Analysis: InterDigital | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 7.061m USD | 12M Return: 28.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 118M
EPS Trend: 87.5%
Qual. Beats: 0
Rev. Trend: 89.8%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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: 366.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.26 > 0.02 and ΔFCF/TA 18.79 > 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 (534.0m): -1.27 < 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: 11.65 > 6 (EBIT TTM 456.2m / 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 456.2m / Avg Total Assets 1.97b) |
| D: 1.14 (Book Value of Equity 1.10b / Total Liabilities 967.1m) |
| Altman-Z'' = 8.23 = 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 July 02, 2026, the stock is trading at USD 282.26 with a total of 238,335 shares traded. Over the past week, the price has changed by +3.00%, over one month by +9.26%, over three months by -7.67% and over the past year by +28.40%.
Current recommended Stop Loss: 256.90 (which is 9% or 2.1 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 | 63.9% |
P/E Trailing = 26.0439
P/E Forward = 31.1526
P/S = 8.5181
P/B = 6.3952
P/EG = 1.3155
Revenue TTM = 828.9m USD
EBIT TTM = 456.2m USD
EBITDA TTM = 534.0m 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 = 6.38b USD (7.06b + Debt 415.2m - CCE 1.09b)
Interest Coverage Ratio = 11.65 (Ebit TTM 456.2m / Interest Expense TTM 39.2m)
EV/FCF = 11.89x (Enterprise Value 6.38b / FCF TTM 536.8m)
FCF Yield = 8.41% (FCF TTM 536.8m / Enterprise Value 6.38b)
FCF Margin = 64.76% (FCF TTM 536.8m / 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 = 3.08 (Enterprise Value 6.38b / Total Assets 2.07b)
Interest Expense / Debt = 9.43% (Interest Expense 39.2m / Debt 415.2m)
Taxrate = 12.14% (50.6m / 417.0m)
NOPAT = 400.8m (EBIT 456.2m * (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 = -1.27 (Net Debt -676.7m / EBITDA 534.0m)
Debt / FCF = -1.26 (Net Debt -676.7m / FCF TTM 536.8m)
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 = 41.15% (EBIT 456.2m / Capital Employed (Equity 1.10b + L.T.Debt 10.5m))
RoIC = 24.01% (NOPAT 400.8m / Invested Capital 1.67b)
WACC = 7.99% (E(7.06b)/V(7.48b) * Re(7.97%) + D(415.2m)/V(7.48b) * Rd(9.43%) * (1-Tc(0.12)))
Discount Rate = 7.97% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.89 | Cagr: 11.46%
[DCF] Terminal Value 77.97% ; FCFF base≈375.2m ; Y1≈430.1m ; Y5≈633.0m
[DCF] Fair Price = 394.7 (EV 9.53b - Net Debt -676.7m = Equity 10.2b / 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 (2026-09-30): EPS=2.17 | Chg30d=+0.00% | Revisions=-33% | Analysts=3
EPS current Year (2026-12-31): EPS=9.62 | Chg30d=+0.00% | Revisions=-25% | GrowthEPS=-37.2% | GrowthRev=-15.3%
EPS next Year (2027-12-31): EPS=11.24 | Chg30d=+0.00% | Revisions=-14% | GrowthEPS=+16.9% | GrowthRev=+3.4%
[Analyst] Revisions Ratio: -33%