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Upturn AI SWOT - About
IDCC 
InterDigital Inc (IDCC)
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Upturn Advisory Summary
07/02/2025: IDCC (3-star) is a STRONG-BUY. BUY since 35 days. Profits (-0.36%). Updated daily EoD!
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Number of Analysts
5 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $220.41
1 Year Target Price $220.41
| 2 | Strong Buy |
| 1 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 108.34% | Avg. Invested days 65 | Today’s Advisory Regular Buy |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 07/02/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.75B USD | Price to earnings Ratio 17.73 | 1Y Target Price 220.41 |
Price to earnings Ratio 17.73 | 1Y Target Price 220.41 | ||
Volume (30-day avg) 5 | Beta 1.37 | 52 Weeks Range 117.09 - 237.50 | Updated Date 07/2/2025 |
52 Weeks Range 117.09 - 237.50 | Updated Date 07/2/2025 | ||
Dividends yield (FY) 1.07% | Basic EPS (TTM) 12.51 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 48.14% | Operating Margin (TTM) 62.63% |
Management Effectiveness
Return on Assets (TTM) 15.78% | Return on Equity (TTM) 50.29% |
Valuation
Trailing PE 17.73 | Forward PE 19.46 | Enterprise Value 5417775619 | Price to Sales(TTM) 7.13 |
Enterprise Value 5417775619 | Price to Sales(TTM) 7.13 | ||
Enterprise Value to Revenue 6.64 | Enterprise Value to EBITDA 9.43 | Shares Outstanding 25936700 | Shares Floating 25410997 |
Shares Outstanding 25936700 | Shares Floating 25410997 | ||
Percent Insiders 1.41 | Percent Institutions 102.93 |
Upturn AI SWOT
InterDigital Inc
Company Overview
History and Background
InterDigital Inc. was founded in 1972 as International Mobile Machines (IMM). The company initially focused on developing advanced wireless technologies. It evolved into a pure-play research and development company specializing in wireless and video technologies, licensing its intellectual property to manufacturers of mobile devices, networks, and video products.
Core Business Areas
- Patent Licensing: InterDigital develops and licenses wireless and video technologies, primarily related to 5G, 4G/LTE, and video codecs. They generate revenue through royalty payments from companies using their patents.
- Research and Development: The company invests heavily in research and development to create new technologies and enhance its patent portfolio. This includes developing technologies for future generations of wireless and video standards.
Leadership and Structure
The leadership team is headed by the President and CEO, Rajesh Pankaj. The company's structure is organized around research, engineering, patent licensing, and corporate functions. There are various Vice Presidents overseeing key departments.
Top Products and Market Share
Key Offerings
- Wireless Technologies (5G, 4G/LTE): InterDigital's core offering revolves around its patent portfolio related to cellular technologies. Their market share in the overall wireless technology licensing market is difficult to pinpoint exactly, but they are considered a significant player, particularly in 5G licensing. Competitors include Qualcomm (QCOM), Ericsson (ERIC), and Nokia (NOK).
- Video Technologies (HEVC, VVC): InterDigital also holds patents related to video compression technologies. Similar to wireless technologies, they generate revenue through licensing. Competitors include MPEG LA and other patent pools related to video codecs.
Market Dynamics
Industry Overview
The wireless technology industry is characterized by constant innovation, driven by the increasing demand for faster and more reliable mobile connectivity. The video technology industry continues to demand better compression for streaming services. Intense competition exists among companies developing and licensing these technologies. Patent litigation and standards development are critical aspects of the landscape.
Positioning
InterDigital is positioned as a leading research and development company focused on generating and licensing intellectual property. Their competitive advantage lies in their extensive patent portfolio and their ability to develop cutting-edge technologies ahead of market needs.
Total Addressable Market (TAM)
The total addressable market for wireless and video technology licensing is estimated to be in the billions of dollars annually. InterDigital is positioned to capture a portion of this TAM through its patent licensing activities, particularly as 5G and advanced video codecs become more widely adopted.
Upturn SWOT Analysis
Strengths
- Strong patent portfolio
- Expertise in wireless and video technologies
- Significant investment in R&D
- Established licensing business model
Weaknesses
- Reliance on patent litigation to enforce licensing agreements
- Exposure to patent invalidation challenges
- Revenue can be lumpy due to the nature of licensing agreements
- High R&D expenses
Opportunities
- Growth in 5G deployments globally
- Increasing demand for advanced video compression technologies
- Expansion into new technology areas (e.g., IoT)
- Strategic partnerships with other technology companies
Threats
- Patent infringement by unlicensed parties
- Competition from other patent holders
- Changes in patent laws or regulations
- Economic downturn impacting device sales
Competitors and Market Share
Key Competitors
- QCOM
- ERIC
- NOK
Competitive Landscape
InterDigital competes with larger companies like Qualcomm, Ericsson, and Nokia. InterDigital's advantage lies in its focused R&D efforts and its willingness to litigate to protect its intellectual property. However, it faces the disadvantage of being smaller and having fewer resources than its larger competitors.
Major Acquisitions
Technicolor Patent Portfolio
- Year: 2018
- Acquisition Price (USD millions): 475
- Strategic Rationale: To enhance InterDigital's video technology patent portfolio and strengthen its position in the video licensing market.
Growth Trajectory and Initiatives
Historical Growth: Historical growth data unavailable.
Future Projections: Future growth projections unavailable.
Recent Initiatives: InterDigital's recent initiatives include focusing on 6G research, expanding its video technology portfolio, and pursuing new licensing agreements in key markets.
Summary
InterDigital is a research and development company that is strong in wireless and video technology licensing. They rely heavily on their patent portfolio and litigation to generate revenue. A weakness is their size compared to the biggest players in the space. Going forward the demand for higher speed and better resolution give InterDigital opportunities, but they are in danger of patent infringement from other parties.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings, industry reports, analyst estimates.
- InterDigital's Website
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Market share data is approximate and based on available industry reports. Financial data is unavailable and therefore analysis may be incomplete.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About InterDigital Inc
Exchange NASDAQ | Headquaters Wilmington, DE, United States | ||
IPO Launch date 1990-03-26 | President, CEO & Director Mr. Lawrence Chen J.D. | ||
Sector Technology | Industry Software - Application | Full time employees 430 | Website https://www.interdigital.com |
Full time employees 430 | Website https://www.interdigital.com | ||
InterDigital, Inc. operates as a global research and development company focuses on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing various products and services, including makers of wireless communications devices, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless 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 mobile phones, automobiles and autonomous vehicles, wearables, smart factories and smart homes, robots, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and researches and develops artificial intelligence and machine learning solutions. 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.
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