# InterDigital Inc. (IDCC) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $337.94, market value $8.7 billion.

## Valuation
- **P/E (trailing): 39.7×** (5-yr avg 21.8×, 3-yr avg 18.8×). InterDigital Inc. trades at 39.7× trailing earnings, well above its own five-year average of 21.8×: investors are paying up relative to the company's past. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 29.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 11.1×**. Each dollar of revenue is priced at 11.1×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 7.3×**. The shares trade at 7.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 20.0×**. Enterprise value is 20.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.4%** (5-yr avg 8.5%). Free cash flow equals 6.4% of the market value, below its five-year average of 8.5%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 2.5%**. The inverse of the P/E: 2.5% of the price is earned each year.

## Profitability
- **Operating margin: 43.8%**. 43.8% of revenue is left after running the business, an exceptional level.
- **Net margin: 48.8%**. 48.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 36.9%**. 36.9% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 32.6%**. Return on all capital, debt included, is 32.6%: comfortably above what that capital costs.
- **Return on assets: 14.6%**. Each dollar of assets produces 14.6% of profit.

## Growth
- **Revenue growth (1 yr): -4.0%** (3-yr 22.1%/yr, 5-yr 18.4%/yr). Revenue fell 4.0% over the last year, against 18.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -2.2%** (3-yr 56.6%/yr, 5-yr 52.3%/yr). Earnings per share fell 2.2%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 23.2%/yr**. Free cash flow has compounded at 23.2% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.43**. Debt is 0.43 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. InterDigital Inc. holds more cash than debt.
- **Altman Z-score: 7.32**. A Z-score of 7.32 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.83%** ($2.80 per share, trailing). InterDigital Inc. yields 0.83%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 15%** (13% of free cash flow). 15% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 10.9%/yr** (1-yr 42.4%). The dividend has compounded at 10.9% a year over five years, doubling roughly every 7 years at that pace.

## Analyst view
- **Analyst consensus: strong_buy** (3 analysts). 3 analysts cover InterDigital Inc.; the consensus is strong_buy, with an average price target of $462.67 (+37% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 18.5%** (YTD 6.9%, 3-mo 30.0%). The shares are up 18.5% over twelve months including dividends.
- **From 52-week high: -18.1%** (35.6% above the low). Trading 18% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): 1.45** (volatility 49%). Beta of 1.45 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=IDCC · Page: https://foliofundamentals.com/stocks/idcc

Not investment advice.