ScoreWhy is InterDigital, Inc. ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Company has a low Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Capital Employed (avg) of 64.40% signifying high profitability per unit of total capital (equity and debt)
2
With ROE of 41.86%, it has a very attractive valuation with a 16.22 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 84.48%, its profits have risen by 107.2% ; the PEG ratio of the company is 0.4
3
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Consistent Returns over the last 3 years
- Along with generating 84.48% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to InterDigital, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is InterDigital, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
InterDigital, Inc.
75.32%
5.13
40.55%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.22%
EBIT Growth (5y)
50.18%
EBIT to Interest (avg)
5.45
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.45
Sales to Capital Employed (avg)
0.54
Tax Ratio
14.77%
Dividend Payout Ratio
14.08%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
64.40%
ROE (avg)
23.80%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
39
Industry P/E
Price to Book Value
16.22
EV to EBIT
31.60
EV to EBITDA
27.44
EV to Capital Employed
28.78
EV to Sales
18.12
PEG Ratio
0.37
Dividend Yield
22.69%
ROCE (Latest)
91.09%
ROE (Latest)
41.86%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend32What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 354.79 MM
ROCE(HY)
Highest at 51.97%
INTEREST COVERAGE RATIO(Q)
Highest at 2,358.1
RAW MATERIAL COST(Y)
Fallen by -3.77% (YoY
CASH AND EQV(HY)
Highest at USD 1,842.7 MM
DIVIDEND PER SHARE(HY)
Highest at USD 2.71
NET SALES(Q)
Highest at USD 300.6 MM
OPERATING PROFIT(Q)
Highest at USD 224.89 MM
OPERATING PROFIT MARGIN(Q)
Highest at 74.82 %
PRE-TAX PROFIT(Q)
Highest at USD 211.03 MM
NET PROFIT(Q)
Highest at USD 180.57 MM
EPS(Q)
Highest at USD 5.35
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for InterDigital, Inc.
Operating Cash Flow
Highest at USD 354.79 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
At USD 300.6 MM has Grown at 47.44%
over average net sales of the previous four periods of USD 203.87 MMMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Interest Coverage Ratio
Highest at 2,358.1
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At USD 211.03 MM has Grown at 83.48%
over average net sales of the previous four periods of USD 115.02 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 180.57 MM has Grown at 84.19%
over average net sales of the previous four periods of USD 98.04 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
Highest at USD 300.6 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 224.89 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 74.82 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 211.03 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 180.57 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 5.35
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 1,842.7 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per share
Highest at USD 2.71
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -3.77% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 19.46 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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