InterDigital, Inc.

Valuation Analysis

About the Company

InterDigital, Inc. operates as a global research and development company focuses on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing various products and services, including makers of wireless communications devices, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, a

InterDigital, Inc. Stock at a Glance

InterDigital, Inc. (IDCC) is currently trading at $283.73 with a market capitalization of $7.3B. The trailing P/E ratio stands at 27.02x, with a forward P/E of 25.24x. The 52-week range spans from $213.06 to $412.60; the current price is 31.2% below the yearly high. Year-over-year revenue growth stands at -2.4%. The net profit margin stands at 44.2%.

💰 Dividend

InterDigital, Inc. pays an annual dividend of $2.80 per share, representing a yield of 0.99%. The payout ratio stands at 24.79%.

📊 Analyst Rating

3 analysts rate InterDigital, Inc. (IDCC) on consensus: Strong Buy. The average price target is $462.67, implying +63.07% from the current price. Analyst price targets range from $425.00 to $488.00.

InterDigital, Inc.: The Investment Case in Detail

InterDigital, Inc. (IDCC) operates in the Technology — specifically Software - Application — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 84.66%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 35.9% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Free cash flow is positive and net margins stand at 44.2%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

Revenue is contracting at -2.4% year-over-year — until that trend reverses, valuation is exposed to further downgrades. Short interest sits at 11.85% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

The PEG ratio at 1.32 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric.

What to Watch Next

• The analyst consensus price target implies 63.07% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (11.85%).

Trading Data

💵 Dividend Info

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