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($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
Do you know where your smartphone is? It’s likely it’s not more than 3 feet away from you right now. It might even be in your hand while you’re reading this. What’s up with that? It’s all about the creation of digital cellular. An Iphone wouldn’t be much fun at all if it weren’t for wireless technology. At a time when the rest of the world was focused on analog cellular and voice, a company named InterDigital drove a bold new vision: digital wireless telecom, providing a platform for voice but also for the data services that drive the market today. A vision decades ahead of its time. And the rest, my friends, is history.
Today I bought stock in Interdigital (ticker: IDCC) at $213.03. I will sell it in 4 – 6 weeks at 246.05. Here’s why I like IDCC.
It all starts with the chart:
This stock is on a roll! The stock price is up 94% over the last 12 months. Its PE is only 17.8. The stock has a market cap of $5.5 billion on sales of $868 million (ttm). These kickass numbers are supported by a profit margin of 41% and an operating margin of 64%. Even more impressive is return on equity of 49.9% and return on assets of 15.1%. All if this is rock solid.
From connecting each generation of cellular to enabling devices that shape our future, InterDigital invents the technologies that make life boundless. As one of the world’s largest pure research, innovation, and licensing companies, InterDigital’s leadership in wireless, video, AI and emerging technologies enables and enhances the devices and connected industries of tomorrow. InterDigital, Inc operates as a global research and development company with focus primarily 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 such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming.
Both the industry and performance of this company make it a very attractive stock. What is even better is the outlook. ANAL-ysts keep raising their estimates because the growth trends are remarkable. IDCC could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The Zacks Consensus Estimate has increased 64.41%. Three estimates have moved higher compared to no negative revisions. InterDigital currently carries a Zacks Rank #1 (Strong Buy). Stocks with Zacks Rank #1 (Strong Buy) significantly outperform the S&P 500. The good news is that they have a whole portfolio of groundbreaking tech patents which means the best is yet to come! The debt to equity ratio of 57% means that they have a lot of room left on their balance sheet, combined with their robust cash flow, to drive the growth of the business. The Zacks Consensus Estimate has increased $1.66 to $15.19 per share. IDCC boasts an average earnings surprise of 163.7%. Looking at cash flow, InterDigital is expected to report cash flow growth of 78.1% this year. Over half a decade, InterDigital managed to grow its earnings per share at 66% a year.
In 3Q24, InterDigital generated $128.68 million in revenues, beating estimates by $32.73 million. In the company's recent investor day, IDCC announced that the company will be targeting $1 billion in recurring revenues by 2030.As of today, the IDCC licenses its technologies to the top four smartphone companies and covers at least 70% of the world's smartphones. IDCC's Artificial Intelligence(AI) technology will also play a significant role in growing revenue.
You like numbers? We’ll show you numbers from last quarter:
Here’s a look at annual performance:
The trend is your friend:
Revenues:
Year 2023 $550 million
Year 2024 $869 million
Earnings per share:
Year 2023 $ 9.23
Year 2024 $14.97
Here’s what the boss, Liren Chen, had to say:
“I'm delighted to share that in 2024, we delivered the best business results in our history. And since our technologies are more critical than ever to an ecosystem generating roughly $6 trillion in economic value every year, we believe we are just getting started. Looking at 2024 overall, it was another outstanding 12 months for the company. Revenue for the year increased almost 60% to $869 million, the highest annual revenue in the company's history, thanks to increased momentum across all our licensing programs and the new agreements with some of the world's largest device makers. We also delivered record level adjusted EBITDA and EPS in 2024. This highlights the upside we see beyond our smartphone program and reflects how our video and wireless technology supports an expanding range of use cases. Our research teams are firing on all cylinders, as we grow our leadership in the development of key standards, maintain our focus in quality of our innovation and break new ground in the application of cutting-edge technology such as AI. In 2024, we made more than 5,000 new patent filings worldwide with our global portfolio now over 33,000 assets. We believe our technology is more valuable in an increasingly connected world. We lead the development of standardized technologies that are implemented in billions of devices every year, and we have a proven track record to convert our research and patent leadership into new license agreements.”
If you have trouble putting down your phone, then you should go right to your online broker and pick up shares of this stock and in a short period of time, you can buy a new phone with the money you made on this stock pick! Let’s goooooooooooooo!
$$$MR. MARKET$$$
www.mrmarketishuge.com
Do you know where your smartphone is? It’s likely it’s not more than 3 feet away from you right now. It might even be in your hand while you’re reading this. What’s up with that? It’s all about the creation of digital cellular. An Iphone wouldn’t be much fun at all if it weren’t for wireless technology. At a time when the rest of the world was focused on analog cellular and voice, a company named InterDigital drove a bold new vision: digital wireless telecom, providing a platform for voice but also for the data services that drive the market today. A vision decades ahead of its time. And the rest, my friends, is history.
Today I bought stock in Interdigital (ticker: IDCC) at $213.03. I will sell it in 4 – 6 weeks at 246.05. Here’s why I like IDCC.
It all starts with the chart:
This stock is on a roll! The stock price is up 94% over the last 12 months. Its PE is only 17.8. The stock has a market cap of $5.5 billion on sales of $868 million (ttm). These kickass numbers are supported by a profit margin of 41% and an operating margin of 64%. Even more impressive is return on equity of 49.9% and return on assets of 15.1%. All if this is rock solid.
From connecting each generation of cellular to enabling devices that shape our future, InterDigital invents the technologies that make life boundless. As one of the world’s largest pure research, innovation, and licensing companies, InterDigital’s leadership in wireless, video, AI and emerging technologies enables and enhances the devices and connected industries of tomorrow. InterDigital, Inc operates as a global research and development company with focus primarily 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 such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming.
Both the industry and performance of this company make it a very attractive stock. What is even better is the outlook. ANAL-ysts keep raising their estimates because the growth trends are remarkable. IDCC could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The Zacks Consensus Estimate has increased 64.41%. Three estimates have moved higher compared to no negative revisions. InterDigital currently carries a Zacks Rank #1 (Strong Buy). Stocks with Zacks Rank #1 (Strong Buy) significantly outperform the S&P 500. The good news is that they have a whole portfolio of groundbreaking tech patents which means the best is yet to come! The debt to equity ratio of 57% means that they have a lot of room left on their balance sheet, combined with their robust cash flow, to drive the growth of the business. The Zacks Consensus Estimate has increased $1.66 to $15.19 per share. IDCC boasts an average earnings surprise of 163.7%. Looking at cash flow, InterDigital is expected to report cash flow growth of 78.1% this year. Over half a decade, InterDigital managed to grow its earnings per share at 66% a year.
In 3Q24, InterDigital generated $128.68 million in revenues, beating estimates by $32.73 million. In the company's recent investor day, IDCC announced that the company will be targeting $1 billion in recurring revenues by 2030.As of today, the IDCC licenses its technologies to the top four smartphone companies and covers at least 70% of the world's smartphones. IDCC's Artificial Intelligence(AI) technology will also play a significant role in growing revenue.
You like numbers? We’ll show you numbers from last quarter:
- Revenue up 140% y/y to $253 million and Adj. EBITDAa up 272% y/y to $198 million, both above the top end of the outlook
- Recurring revenue up 13% y/y to $117 million
- Smartphone recurring revenue up 10% y/y to $95 million
- Adj. EBITDA margina of 78%, up 27 ppt y/y
- Free cash flowa of $169 million
- Cash balance increased to $958 million
- Increased quarterly dividend by 33% to $0.60 per share on February 6, 2025
- Won Fierce Network Innovation Award for AI
- Recognized by Forbes as one of America’s 100 most successful mid-cap companies second year in a row
Here’s a look at annual performance:
- Record revenue of $869 million, up 58% y/y
- Record adjusted EBITDAa of $551 million, up 60% y/y
- Record non-GAAP EPS of $14.97, up 62% y/y
- Adj. EBITDA margin of 63%
- Return of capital and repayment of debt of $236 million
The trend is your friend:
Revenues:
Year 2023 $550 million
Year 2024 $869 million
Earnings per share:
Year 2023 $ 9.23
Year 2024 $14.97
Here’s what the boss, Liren Chen, had to say:
“I'm delighted to share that in 2024, we delivered the best business results in our history. And since our technologies are more critical than ever to an ecosystem generating roughly $6 trillion in economic value every year, we believe we are just getting started. Looking at 2024 overall, it was another outstanding 12 months for the company. Revenue for the year increased almost 60% to $869 million, the highest annual revenue in the company's history, thanks to increased momentum across all our licensing programs and the new agreements with some of the world's largest device makers. We also delivered record level adjusted EBITDA and EPS in 2024. This highlights the upside we see beyond our smartphone program and reflects how our video and wireless technology supports an expanding range of use cases. Our research teams are firing on all cylinders, as we grow our leadership in the development of key standards, maintain our focus in quality of our innovation and break new ground in the application of cutting-edge technology such as AI. In 2024, we made more than 5,000 new patent filings worldwide with our global portfolio now over 33,000 assets. We believe our technology is more valuable in an increasingly connected world. We lead the development of standardized technologies that are implemented in billions of devices every year, and we have a proven track record to convert our research and patent leadership into new license agreements.”
If you have trouble putting down your phone, then you should go right to your online broker and pick up shares of this stock and in a short period of time, you can buy a new phone with the money you made on this stock pick! Let’s goooooooooooooo!
$$$MR. MARKET$$$
www.mrmarketishuge.com
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