AI Spotlight on IDCC
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 |
News
- Jan -23 - InterDigital Announces Date for Fourth Quarter 2024 Financial Results
- Jan -22 - Will InterDigital (IDCC) Beat Estimates Again in Its Next Earnings Report?
- Jan -22 - InterDigital Is Still A Solid Growth Pick In 2025
- Jan -22 - Sustainable solutions have the potential to reap huge energy savings across video entertainment industry
- Jan -20 - Down -9.36% in 4 Weeks, Here's Why InterDigital (IDCC) Looks Ripe for a Turnaround
- Jan -17 - 5 Dividend Growth Stocks to Secure Your Portfolio
- Jan -16 - InterDigital (IDCC) Loses -7.36% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner
- Jan -08 - Bet on 3 Momentum Anomaly Stocks to Combat Market Whims
- Jan -07 - Looking for Earnings Beat? Buy These 5 Top-Ranked Stocks
- Dec -30 - InterDigital Surges 80% in the Past Year: Reason to Buy IDCC Stock?
- Dec -30 - 5 Dividend Growth Stocks to Boost Your Portfolio in 2025
- Dec -24 - 5 Momentum Stocks Investors Can Add to Boost Portfolio Returns in 2025
- Dec -23 - Will IDCC's Acknowledgement of AI Innovations Benefit the Stock?
- Dec -20 - InterDigital Wins Fierce Network Innovation Award For AI
- Dec -16 - 5 Telecom Stocks to Connect Your Portfolio to Solid ROI
- Dec -12 - 5 Solid Dividend Growth Stocks to Buy Now
- Dec -10 - Are Computer and Technology Stocks Lagging InterDigital (IDCC) This Year?
- Dec -10 - InterDigital's Dong Tian Named IEEE Fellow
- Dec -09 - InterDigital (IDCC) is a Great Momentum Stock: Should You Buy?
- Dec -05 - InterDigital Declares Regular Quarterly Cash Dividend
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
Threat Of Substitutes
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.
Bargaining Power Of Customers
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.
Bargaining Power Of Suppliers
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.
Threat Of New Entrants
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.
Intensity Of Rivalry
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.
Strength
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% |
InterDigital, Inc. : Quality Control
InterDigital, Inc. passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
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