Patent Owners & Lessors
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 also 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, 5G, advanced and 6G, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and engages in the research and development of artificial intelligence. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, and base stations; televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.
Discounted Cash Flow Valuation of Interdigital, Inc.
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $288.9M | $286.7M | $284.6M | $282.5M | $280.4M | $278.4M | $276.3M | $274.3M | $272.3M | $270.3M | $268.3M | $2.683B |
DCF | $249.3M | $215.2M | $185.8M | $160.3M | $138.4M | $119.5M | $103.1M | $89.01M | $76.83M | $66.32M | $663.2M | |
Value | $2.067B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 26% | 46% | 32% | 19% | 4.7% | 11% | 9.9% | 20% | 38% | 31% |
ROA | 14% | 26% | 17% | 3.8% | 4.1% | 4.5% | 4.4% | 7.9% | 13% | 12% |
ROE | 22% | 40% | 20% | 6.3% | 1.9% | 4.8% | 5.6% | 13% | 36% | 30% |
The average Net Margin over the past 5 years is +17.17%.
The trend of Net Margin over the past 5 years is +4.03%.
The average ROA over the past 5 years is +6.33%.
The trend of ROA over the past 5 years is +1.66%.
The average ROE over the past 5 years is +11.25%.
The trend of ROE over the past 5 years is +5.22%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 6.98 | 0.74 | 1.01 | 2.20 | 6.94 | 2.64 | 3.31 | 2.15 | 5.56 | 2.10 |
Debt Equity | 1.48 | 0.42 | 0.36 | 0.34 | 0.75 | 0.50 | 0.56 | 0.83 | 2.00 | 0.97 |
MIN | ||||||||||
Graham Stability | - | - | 98% | 30% | 8.4% | 46% | 100% | 100% | 100% | 8.4% |
The Debt/FCF trailing twelve month is 2.10.
The trend of Debt/FCF over the past 5 years is 0.09.
Graham’s Stability measure stands at 0.08.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | -2.7% | 12% | 15% | 20% | 0.96% |
Net Income | -5.1% | 29% | 77% | 130% | 11% |
Stockholders Equity | -3.6% | -9.1% | -10% | -20% | -5.2% |
FCF | -9.6% | 7.8% | 11% | -26% | -3.8% |
The Revenue CAGR over the past 5 years is +12.32%.
The trend of Revenue growth rate over the past 5 years is +0.96%.
The Earnings CAGR over the past 5 years is +28.83%.
The trend of Earnings growth rate over the past 5 years is +10.91%.
The Equity CAGR over the past 5 years is -9.12%.
The trend of Equity growth rate over the past 5 years is -5.19%.
The FCF CAGR over the past 5 years is +7.75%.
The trend of FCF growth rate over the past 5 years is -3.76%.