Interdigital Stock Profit Margin

IDCC Stock  USD 195.96  0.47  0.24%   
InterDigital fundamentals help investors to digest information that contributes to InterDigital's financial success or failures. It also enables traders to predict the movement of InterDigital Stock. The fundamental analysis module provides a way to measure InterDigital's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to InterDigital stock.
Last ReportedProjected for Next Year
Net Profit Margin 0.39  0.41 
The current year's Pretax Profit Margin is expected to grow to 0.45. The current year's Operating Profit Margin is expected to grow to 0.42.
  
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InterDigital Company Profit Margin Analysis

InterDigital's Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Profit Margin

 = 

Net Income

Revenue

X

100

More About Profit Margin | All Equity Analysis

Current InterDigital Profit Margin

    
  0.37 %  
Most of InterDigital's fundamental indicators, such as Profit Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, InterDigital is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

InterDigital Profit Margin Driver Correlations

Understanding the fundamental principles of building solid financial models for InterDigital is extremely important. It helps to project a fair market value of InterDigital Stock properly, considering its historical fundamentals such as Profit Margin. Since InterDigital's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of InterDigital's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of InterDigital's interrelated accounts and indicators.
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Competition

InterDigital Pretax Profit Margin

Pretax Profit Margin

0.45

At present, InterDigital's Pretax Profit Margin is projected to increase based on the last few years of reporting.
Based on the latest financial disclosure, InterDigital has a Profit Margin of 0.3669%. This is 103.17% lower than that of the Communications Equipment sector and 82.28% lower than that of the Information Technology industry. The profit margin for all United States stocks is 128.89% lower than that of the firm.

InterDigital Profit Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses InterDigital's direct or indirect competition against its Profit Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of InterDigital could also be used in its relative valuation, which is a method of valuing InterDigital by comparing valuation metrics of similar companies.
InterDigital is currently under evaluation in profit margin category among its peers.

InterDigital ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, InterDigital's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to InterDigital's managers, analysts, and investors.
Environmental
Governance
Social

InterDigital Fundamentals

About InterDigital Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze InterDigital's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of InterDigital using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of InterDigital based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether InterDigital offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of InterDigital's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Interdigital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Interdigital Stock:
Check out InterDigital Piotroski F Score and InterDigital Altman Z Score analysis.
For information on how to trade InterDigital Stock refer to our How to Trade InterDigital Stock guide.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of InterDigital. If investors know InterDigital will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about InterDigital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.34)
Dividend Share
1.65
Earnings Share
9.27
Revenue Per Share
28.417
Quarterly Revenue Growth
(0.08)
The market value of InterDigital is measured differently than its book value, which is the value of InterDigital that is recorded on the company's balance sheet. Investors also form their own opinion of InterDigital's value that differs from its market value or its book value, called intrinsic value, which is InterDigital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because InterDigital's market value can be influenced by many factors that don't directly affect InterDigital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between InterDigital's value and its price as these two are different measures arrived at by different means. Investors typically determine if InterDigital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, InterDigital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.