Wednesday, April 26, 2017 4:24:46 PM
http://www.capitalcube.com/blog/index.php/interdigital-inc-value-analysis-nasdaqidcc-april-26-2017/
Capitalcube gives InterDigital, Inc. a score of 84.
Our analysis is based on comparing InterDigital, Inc. with the following peers – BlackBerry Limited, QuickLogic Corporation, Sony Corporation Sponsored ADR, Intel Corporation, Oclaro, Inc., Xilinx, Inc., Apple Inc. and LM Ericsson Telefon AB Sponsored ADR Class B (BBRY-US, QUIK-US, SNE-US, INTC-US, OCLR-US, XLNX-US, AAPL-US and ERIC-US).
Investment Outlook
InterDigital, Inc. has a fundamental score of 84 and has a relative valuation of UNDERVALUED.
Company Overview
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
It’s current Price/Book of 4.11 is about median in its peer group.
We classify IDCC-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
IDCC-US has relatively high profit margins while operating with median asset turns.
The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
IDCC-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
While IDCC-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
The company’s level of capital investment seems appropriate to support the company’s growth.
IDCC-US has the financial and operating capacity to borrow quickly.
Leverage & Liquidity
IDCC-US has the financial and operating capacity to borrow quickly.
With debt at a relatively low 11.03% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 13.77%), and a well-cushioned interest coverage level of 20.70x, IDCC-US can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
All 8 peers for the company have an outstanding debt balance.
IDCC-US has moved to a Quick & Able from an Some Capacity profile at the prior year-end.
IDCC-US‘s interest coverage is greater than (but within one standard deviation of) its four-year average interest coverage of 12.97x.
While its interest coverage increased to 20.70x from 6.86x (in 2015), its peer median decreased during this period to 12.69x from 13.99x.
Interest coverage rose 15.14 points relative to peers (and is now higher than its peer median).
IDCC-US‘s debt-EV is its lowest over the last four years and compares to a high of 37.41% in 2015.
The decrease in its debt-EV to 11.03% from 37.41% (in 2015) was also accompanied by a decrease in its peer median during this period to 13.77% from 17.07%.
Relative to peers, debt-EV fell 23.08 percentage points (and is now lower than its peer median).
Key Liquidity Items see chart in article
Company Profile
InterDigital, Inc. engages in the design and development of advanced technologies that enable and enhance wireless communications, and capabilities. It offers innovations that are used in digital cellular and wireless products and networks, including 2G, 3G, 4G and IEEE 802-related products and networks. The company was founded by Seligsohn I. Sherwin in 1972 and is headquartered in Wilmington, DE.
Disclaimer
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.
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Recent IDCC News
- InterDigital Wins Two CSI Awards for Best Immersive Video and Video Processing Technology • GlobeNewswire Inc. • 09/16/2024 12:30:00 PM
- InterDigital Announces Annual Recurring Revenue Target Of $1 Billion By 2030 • GlobeNewswire Inc. • 09/16/2024 12:00:00 PM
- Interdigital Announces Increase of Regular Quarterly Cash Dividend • GlobeNewswire Inc. • 09/10/2024 12:00:00 PM
- At 6GSymposium, InterDigital to Lead Crucial Discussions on Emerging Use Cases and Avenues Towards 6G Profitability • GlobeNewswire Inc. • 09/09/2024 08:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/06/2024 08:05:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/05/2024 08:01:37 PM
- InterDigital to Showcase Excellence in Broadcast and Immersive Video Solutions at IBC 2024 • GlobeNewswire Inc. • 08/29/2024 08:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/22/2024 12:17:49 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/20/2024 08:06:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/20/2024 01:05:55 PM
- More than half of connected devices will be haptic enabled by 2028, revealing exciting opportunity for immersive video • GlobeNewswire Inc. • 08/20/2024 08:00:00 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/19/2024 08:19:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/19/2024 12:28:06 PM
- InterDigital Announces 2024 Investor Day • GlobeNewswire Inc. • 08/01/2024 12:45:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/01/2024 12:35:02 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/01/2024 12:32:54 PM
- Interdigital Announces Financial Results for Second Quarter 2024 • GlobeNewswire Inc. • 08/01/2024 12:30:21 PM
- InterDigital signs license agreement with Panasonic • GlobeNewswire Inc. • 08/01/2024 08:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:52:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:48:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:47:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:45:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:40:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:37:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:31:56 PM
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