IDCC

InterDigital, Inc.

Fundamental data last updated:October 31, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

InterDigital, Inc., together with its subsidiaries, designs and develops technologies that enable and enhance wireless communications in the United States, China, South Korea, Japan, Taiwan, and Europe. It provides technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G, and IEEE 802-related products and networks. The company develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G NR, beyond 5G (B5G), extended reality over wireless, and cellular Internet of Things (IoT) areas, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. It also provides video coding and transmission technologies; and engages in the research and development of artificial intelligence. The company's patented technologies are used in various products that include cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, which comprise base stations; components, dongles, and modules for wireless devices; and IoT devices and software platforms. As of December 31, 2021, it had a portfolio of approximately 27,500 patents and patent applications related to wireless communications, video coding, display technology, and other areas. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.

 


VALUATION

P/E

17.70

Market Cap ($M USD)

$6.52B

Forward P/E

17.09

PEG

4.81

PRICE TO SALES

7.86

PRICE TO BOOK

5.87

EV / EBITDA

11.95

5-Year Average P/E

Free Cash Flow Yield

8.89%

DCF Value

$302.94

Graham Number

$117.29

Price to FCF

11.25

EV to FCF

10.88

Earnings Yield

5.65%

FCF Yield

8.89%

DIVIDEND

Yield

1.07%

Annual Payout

$2.70

Payout Ratio

18.32%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$14.24

Next Year EPS Growth Estimate

$14.75

Next Year Revenue Growth Estimate

$1.04B

Return on Equity (ROE)

33.37%

FREE CASH FLOW

Operating Margin

49.62%

Debt-to-Equity

0.46

Piotroski F-Score

7

Altman Z-Score

6.98

Return on Invested Capital (ROIC)

30.86%

Current Ratio

1.88

Quick Ratio

1.88

Net Debt to EBITDA

-0.41

Interest Coverage

10.50

Gross Profit margin

83.35%

FCF PER SHARE

$22.51

REVENUE PER SHARE

$32.23

Gainseekers Quantitative Analysis

Summary

InterDigital, Inc. appears to be a compelling case of market mispricing. Based on the data at the time of this analysis, the stock traded below its DCF Value, suggesting potential undervaluation. The Forward P/E ratio of 18.96 and an Earnings Yield of 5.09% indicate reasonable growth expectations, while the robust Altman Z-score of 7.44 underscores financial stability. These metrics collectively paint a picture of a company that is not only financially sound but also potentially undervalued by the market.

AI Exposure / Tech Reliance

Operating within the Software - Application industry, InterDigital is strategically positioned to capitalize on AI advancements. The tech sector's rapid evolution demands adaptability, and companies like InterDigital are at the forefront, leveraging software innovations to stay competitive. Their industry alignment suggests resilience in the face of technological shifts.

The Bull Case

For the value or GARP investor, InterDigital offers a tantalizing proposition. With an impressive ROIC of 30.86% and a Piotroski F-Score of 7, the company demonstrates strong capital efficiency and operational health. The Free Cash Flow Yield of 8.01% and an Operating Margin of 49.62% highlight its pricing power and ability to generate cash. These strengths suggest a business model capable of delivering consistent returns, making it an attractive buy.

The Bear Case

Despite its strengths, InterDigital is not without its flaws. The Price/Book ratio of 6.51 and Price/Sales ratio of 8.72 signal high valuation multiples, which could deter value investors. Additionally, the stock's recent pricing indicated it was extended above its 50-Day SMA, suggesting potential overextension. These factors, combined with a Forward PEG ratio of 5.34, raise concerns about the sustainability of its growth expectations.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$425.00

Institutional Ownership %

1-Year Beta

1.49

Insider Buying % (6 Mo)

Distance to 52-Week High

63.67%

Distance to 52-Week Low

15.50%

EARNINGS SURPRISE %

1.18%

50-DAY SMA

$309.96

200-DAY SMA

$331.47

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.