-0.34%
-4.95%
22.40%
50.00%
75.29%
166.75%
233.29%

Company Description

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.

Market Data

Last Price 184.14
Change Percentage -0.34%
Open 185.01
Previous Close 184.76
Market Cap ( Millions) 4667
Volume 36800
Year High 207.08
Year Low 95.33
M A 50 188.46
M A 200 143.59

Financial Ratios

FCF Yield 0.41%
Dividend Yield 0.92%
ROE 40.32%
Debt / Equity 67.73%
Net Debt / EBIDTA 20.89%
Price To Book 6.41
Price Earnings Ratio 17.5
Price To FCF 246.67
Price To sales 6.47
EV / EBITDA 11.25

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Smartphone

Expected Growth : 10.55 %

What the company do ?

InterDigital's smartphone is a pioneering device that integrates wireless communication and internet capabilities, featuring a touchscreen interface and mobile apps.

Why we expect these perspectives ?

InterDigital's 10.55% growth in smartphone segment is driven by increasing demand for 5G-enabled devices, expansion into emerging markets, and growing adoption of IoT devices. Additionally, the company's strong patent portfolio and licensing agreements with major OEMs contribute to its revenue growth.

Segment nΒ°2 -> Catch-up Revenues

Expected Growth : 10.8 %

What the company do ?

Catch-up revenues from InterDigital, Inc. refer to the one-time payment received from the company's past patent infringements, compensating for unpaid royalties.

Why we expect these perspectives ?

InterDigital's 10.8% catch-up revenue growth is driven by increasing demand for 5G technology, expansion of its patent licensing business, and growing adoption of its wireless technology solutions in the IoT and automotive markets.

Segment nΒ°3 -> Consumer Electronics, Internet of Things/Auto

Expected Growth : 13.9 %

What the company do ?

Consumer Electronics, Internet of Things/Auto from InterDigital, Inc. refers to innovative technologies and solutions for connected devices, autonomous vehicles, and smart homes.

Why we expect these perspectives ?

Strong demand for 5G-enabled devices, increasing adoption of IoT in automotive and industrial sectors, and growing need for low-power wide-area networks (LPWAN) are driving the 13.9% growth in Consumer Electronics and Internet of Things/Auto segments for InterDigital, Inc.

Segment nΒ°4 -> Other

Expected Growth : 10.43 %

What the company do ?

InterDigital's 'Other' segment includes licensing revenue from non-patent sources, such as technology solutions and standards development.

Why we expect these perspectives ?

InterDigital's 10.43% growth in 'Other' segment is driven by increasing demand for its wireless technology solutions, particularly in the areas of 5G, IoT, and video compression. The company's strong patent portfolio and licensing agreements with top technology companies also contribute to its growth. Additionally, InterDigital's investments in research and development, as well as its strategic partnerships, have enabled it to capitalize on emerging trends and opportunities.

Interdigital, Inc. Products

Product Range What is it ?
5G Millimeter Wave (mmW) Technology InterDigital's 5G mmW technology enables high-speed, low-latency wireless communication, ideal for applications requiring massive bandwidth and low latency.
Video Compression (VVC, HEVC, AVC) InterDigital's video compression technologies, including VVC, HEVC, and AVC, enable efficient video encoding and decoding for various applications.
Artificial Intelligence (AI) and Machine Learning (ML) Solutions InterDigital's AI and ML solutions enable intelligent decision-making, predictive analytics, and automation in various industries.
Internet of Things (IoT) Solutions InterDigital's IoT solutions enable secure, efficient, and scalable connectivity for various IoT applications.
5G New Radio (5G NR) Technology InterDigital's 5G NR technology enables fast, reliable, and low-latency wireless communication for various applications.
Wi-Fi and WiGig Solutions InterDigital's Wi-Fi and WiGig solutions enable fast, reliable, and secure wireless connectivity for various applications.
Patent Licensing and Innovation InterDigital's patent licensing and innovation enable companies to access and leverage its extensive portfolio of wireless and video technologies.

InterDigital, Inc.'s Porter Forces

InterDigital, Inc. operates in the technology industry, where substitutes are readily available. However, the company's focus on 5G and IoT technologies provides a competitive edge, reducing the threat of substitutes.

InterDigital, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's patented technologies provide a unique value proposition, limiting customers' ability to negotiate prices.

InterDigital, Inc. is a technology company with a strong intellectual property portfolio, which reduces its dependence on suppliers. The company's suppliers have limited bargaining power due to the availability of alternative suppliers.

The technology industry is highly competitive, and new entrants can easily disrupt the market. InterDigital, Inc. faces a high threat of new entrants, particularly from startups and established companies expanding into new markets.

The technology industry is highly competitive, and InterDigital, Inc. operates in a crowded market with many established players. The company faces intense rivalry from competitors, which can lead to pricing pressures and reduced market share.

Capital Structure

Value
Debt Weight 51.81%
Debt Cost 7.97%
Equity Weight 48.19%
Equity Cost 10.66%
WACC 9.26%
Leverage 107.50%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
184.14$
Current Price
184.14$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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