IDCC InterDigital Inc

InterDigital is a research and development firm specializing in wireless technology, licensing its 3G, 4G, 5G, and Wi-Fi patents to major smartphone manufacturers and device makers. Sector: Technology.

InterDigital Inc (IDCC) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Looking at how effectively the company deploy capital, ROIC is 74.43%, WACC is 13.03%, and the economic spread is 61.40%. On balance, the company is earning returns on capital well in excess of what investors and creditors require — the defining characteristic of a high-quality compounding company. Supporting metrics show ROE at 40.77% and ROA at 17.68%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

On an earnings multiple basis, trailing P/E of 26.37, forward P/E of 38.17, PEG of 0.86. The gap between trailing and forward multiples is not especially wide, suggesting the market is pricing a steadier earnings path rather than a sharp near-term re-rating. At this PEG level, growth-adjusted valuation looks attractive — the market appears to be paying a reasonable price for the earnings growth embedded in estimates. A current ratio reading of 1.84 points to the company that are managing short-term obligations without apparent stress. Combining multiples and liquidity, the company appears adequately priced for its current earnings trajectory, with balance sheet health providing a degree of downside resilience.

Across the three margin layers, gross margin sits at 88.83%, operating margin at 55.31%, and free cash flow margin at 60.10%. The gross margin reading is exceptional — a reliable indicator of competitively advantaged businesses. Operating margins this strong typically indicate a combination of pricing power, cost discipline, and operating leverage. Free cash flow conversion is exceptional, indicating the company that are self-funding and cash-generative well above average. The margin profile is consistently healthy, a pattern often associated with durable competitive position and execution quality.

On a forward-looking basis, TTM revenue growth of -3.97% a signal that top-line momentum has stalled or reversed at the company level, while the estimated 12-month price change of 32.12%, where consensus pricing assumptions suggest sizable appreciation potential. Revenue growth and price targets are correlated but not the same — strong operations do not always translate to strong price appreciation, and vice versa. The forward return case rests on whether the company can sustain their operating trajectory long enough for analyst price targets to be reached or exceeded. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The full scorecard here is hard to argue with: capital efficiency is strong, margins are healthy, and growth is being priced constructively.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.