InterDigital, Inc.

(IDCC)
Company Overview
InterDigital, Inc. engages in the design and development of technologies that enable
and enhance wireless communications in the United States, Korea, Canada, Europe,
and Asia. The company offers technology solutions for use in digital cellular and
wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products
and networks. The company develops cellular technologies, including technologies
related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 2.5G, and 3G
wireless networks and mobile terminal devices; and other wireless technologies related
to WLAN, Wi-Fi, WMAN, and the digital cellular area. Its patented technologies are
used in various products, including mobile devices, such as cellular phones, tablets,
notebook computers, and wireless personal digital assistants; wireless infrastructure
equipment comprising base stations; and components, dongles, and modules for
wireless devices. As of December 31, 2012, it held a portfolio of approximately 19,000
patents and patent applications related to the fundamental technologies that enable
wireless communications. InterDigital, Inc. was founded in 1972 and is headquartered in

Strong Moat

Good Financials

$
$
$
$
$
$
$

35.57
6.42
7.74
48.78
54.96
44.99
(13.12)

Key Statistics
Mkt Cap ($M)
52 Wk High
52 Wk Low
% off 52Wk Low

$70.00

-100.0%
-100.0%

$60.00

27.1%
35.3%

$50.00

20.9%

$40.00

-100.0%

$30.00
$20.00

Company Stats
$
$
$

1,464.10
48.68
32.15
10.6%

Cash Flows
Free Cash Flow
5 yr FCF Growth
10 yr FCF Growth

4.6%
11.8%

Shares Outstanding
Shares Float
Insider Ownership
Insider Transactions
Institutional Ownership
Float Short

41.2
40.8
1.30%
2.7%
70.1%
9.6%

Short Ratio
Piotroski (TTM)
Altman (MRQ)

10.7
6
3.0

Beneish (TTM)

-3.5

Effectiveness
Margins & Profitability

CROIC
Avg
FCF/S
Avg
ROA
Avg
ROE
Avg

51.7%
26.3%
9.6%

Gross
Gross Margin
Operating
Operating Margin
Net Profit
Net Margin

0.0%
61.8%
39.0%

43.5%

Financial Strength (MRQ)

Efficiency
Receivables Turnover (TTM)
Inventory Turnover (TTM)
Days Sales Outstanding (TTM)

5.5
0.0
34.7

Price vs DCF Intrinsic Value

$80.00

Margin of Safety

Under Valued

Well Managed

Valuation
Current Price
NCAV
Total Net Reprod. Cost
Earnings Power Value (EPV)
Discounted Cash Flow (DCF)
Katsenelson Absolute PE
Ben Graham Formula

August 21, 2013

Figures in Millions except per share values
Low Risk
5
4
3
High Growth
2
1
0

Current Ratio(MRQ)
Quick Ratio(MRQ)
LTD/Eq(MRQ)
Tot D/Eq(MRQ)

5.4
5.4
0.4
0.4

$10.00

$0.00
Sep-02

Sep-04

Sep-06

Stock Price

Sep-08

Sep-10

Intrinsic Value

Fundamental Ratios

Sep-12
Buy Price

2012

TTM

P/E
P/E (cash adjusted)
EV/EBITDA

20.63
13.06
8.24

2011

7.01
4.89
3.27

6.08
2.91
2.11

EV/Free Cash Flow

P/S
P/BV
P/Tang BV
P/CF
P/FCF
ROE

(35.65)
6.12
3.91
5.53
15.22
(48.36)
19.0%

9.64
2.87
3.67
5.59
5.89
12.02
52.4%

2.18
2.32
2.87
4.58
4.86
3.52
48.2%

ROA
ROIC
CROIC
Current Ratio
Total Debt/Equity Ratio
Inventory Turnover

9.0%
66.7%
-26.2%
4.44
0.41
0.00

25.7%
21.5%
91.9% 115.5%
51.7% 192.4%
4.71
5.44
0.39
0.40
0.00
0.00

Selected Financial Statements

(In Millions, Except per Share Amounts)

Revenue
Gross Profit
Margin %
R&D
Margin %
Operating Income
Margin %
Net Income
Margin %
Earnings Per Share
Basic
Diluted

$
$
$
$
$

$
$

Weighted Average Diluted Shares

Outstanding
Dividends Per Share
Dividend Yield
Net Cash From Operating Activities

2008
228
170
74.23%
160
70.09%
(55)
-24.14%
26
11.47%
0.58
0.57

$
$
$
$
$

$
$

45.96
$
$

2009
297
259
87.02%
64
21.52%
114
38.29%
87
29.34%
2.02
1.98

$
$
$
$
$

$
$

44.08

$
0.00%
86 $

2010
395
395
100.00%
71
18.11%
214
54.18%
154
38.93%
3.48
3.43

$
$
$
$
$

$
$

44.82

$
0.00%
321 $

2011
302
230
76.23%
64
21.13%
135
44.66%
89
29.65%
1.97
1.94

$
$
$
$
$

$
$

46.01

$
0.00%
134 $

2012
663
537
80.95%
68
10.23%
432
65.09%
272
40.99%
6.31
6.26

$
$
$
$
$

$
$

43.40

0.39 $
0.98%
(34) $

TTM/Latest
637
490
76.94%
63
9.86%
394
61.82%
248
38.96%
5.89
5.85
41.46

1.91 $
4.36%
178 $

1.89
5.30%
439

8
1,057
365
519

7
1,154
473
514

(Dollars in Millions)

Net Property, Plants & Equipment

Total Assets
Long-term Debt
Stockholders' Equity

$
$
$
$

21
406
192
88

$
$
$
$

10
906
484
170

$
$
$
$

8
875
343
353

$
$
$
$

8
997
352
472

$
$
$
$

$
$
$
$

Refresh

Enter Ticker

InterDigital, Inc.
(IDCC)

CLEAR

Figures in Millions except per share values

8/21/2013

12/31/2003

12/31/2004

2003

Income Statement

2004

Revenue

114.6

0.0%
114.6
100.0%

39.1
34.1%
45.9
40.1%
39.3
34.3%
9.7
8.5%

12/31/2006

2005

% change from prev year

Cost of Revenues
COGS (%)
Gross Profit
Gross Income (%)

12/31/2005

103.7
-9.5%
0.0%
103.7
100.0%

2006

7
$
$
$

12/31/2007

2007

163.1
57.3%
0.0%
163.1
100.0%

82.9
50.8%
63.1
38.7%
28.5
17.5%
11.4
7.0%

$
$

12/31/2008

2008

480.5
194.5%
51.1
10.6%
429.4
89.4%

27.6
5.7%
65.4
13.6%
351.0
73.1%
14.6
3.0%

$
$

12/31/2009

2009

234.2
-51.2%
67.6
28.9%
166.6
71.1%

32.0
13.7%
87.1
37.2%
69.5
29.7%
(24.4)
22.0
9.4%

$
$

12/31/2010

2010

228.5
-2.5%
58.9
25.8%
169.6
74.2%

35.7
15.6%
160.1
70.1%
(26.3)
-11.5%
3.9
28.9
12.6%

$
$

12/31/2011

297.4
30.2%
38.6
13.0%
258.8
87.0%

2011

2
$
$
$

12/31/2012

2012

394.5
32.7%
0.0%
394.5
100.0%

87.2
22.1%
71.5
18.1%
235.9
59.8%
22.1
5.6%

$
$

1000000
TTM
Next Year Est

301.7
-23.5%
71.7
23.8%
230.0
76.2%

31.5
10.4%
63.8
21.1%
165.1
54.7%
30.3
10.1%

$
$

663.1
119.7%
126.3
19.0%
536.8
81.0%

37.4
5.6%
67.9
10.2%
467.0
70.4%
35.4
5.3%

$
$

636.9
-3.9%
146.9
23.1%
490.0
76.9%

Operating Expenses
Selling, General & Admin. Expenses
SG&A (%)
Research & Development
R&D (%)
EBITDA
EBITDA (%)
Other Special Charges
Depreciation & Amortization
D&A (%)
Operating Income
Operating Income (%)

$
$
$
$
$

$
$
$
$

58.8
56.7%
51.2
49.4%
3.4
3.3%
9.7
9.4%

$
$
$
$
$

$
$
$
$

$
$
$
$

$
$
$
$

29.5
25.8%

(6.3)
-6.1%

17.1
10.5%

336.4
70.0%

47.5
20.3%

EBIT
Interest Expense
Interest Income
Other Income
Total Other Income

$
$
$
$
$

41.9
0.2
1.8
10.6
12.4

$
$
$
$
$

(4.3)
0.3
2.0
2.0

$
$
$
$
$

20.3
3.2
3.2

$
$
$
$
$

349.6
13.2
13.2

$
$
$
$
$

32.0
8.9
8.9

$
$
$
$
$

Income Before Taxes (EBT)

Income Taxes/(Credit)
Tax Rate %
Earnings After Taxes
Minority Interest Expense

$
$

41.7
7.3
17.4%
34.5
-

$
$

(4.5)
(4.7)
103.4%
0.2
-

$
$

$
$

349.6
124.4
35.6%
225.2
-

$
$
$
$

32.0
12.0
37.5%
20.0
-

$
$

$
$

Net Income From Continuing Operations$

34.5
Net Income From Discontinued Operations $
Extraordinary Income Losses
$
Income From Cummulated Effect Of Accounting
$
Changes
-

$
$
$
$

0.2
-

$
$
$
$

54.7
-

$
$
$
$

225.2
-

$
$
$
$

Net Income Total

Net Income (%)

(55.1)
-24.1%

$
$
$
$

80.9
27.2%
64.0
21.5%
136.8
46.0%
22.9
7.7%

$
$
$
$
$

$
$
$
$

$
$
$
$

$
$
$
$

33.4
5.3%
62.8
9.9%
433.1
68.0%
39.3
6.2%

113.9
38.3%

213.7
54.2%

134.8
44.7%

431.6
65.1%

393.8
61.8%

41.8
1.8
3.4
89.5
93.0

$
$
$
$
$

113.9
1.2
-

$
$
$
$
$

216.3
2.6
2.6

$
$
$
$
$

135.5
10.9
0.8
0.8

$
$
$
$
$

423.5
14.9
(8.0)
(8.0)

$
$
$
$
$

375.4
7.5
(16.8)
(16.8)

40.0
13.8
34.4%
26.2
-

$
$

$
$

408.6
136.8
33.5%
271.8
-

$
$

$
$

124.6
35.1
28.2%
89.5
-

$
$

$
$

216.3
84.8
39.2%
131.5
-

$
$

$
$

112.7
25.4
22.6%
87.3
-

$
$

$
$

$
$

367.9
121.0
32.9%
246.9
(1.3)

20.0
-

$
$
$
$

26.2
-

$
$
$
$

87.3
-

$
$
$
$

153.6
-

$
$
$
$

89.5
-

$
$
$
$

271.8
-

$
$
$
$

246.9
-

Other Income and Expense

$
$

$
$

$
$

20.3
(34.4)
-170.0%
54.7
-

34.5
30.1%

0.2
0.1%

54.7
33.5%

225.2
46.9%

20.0
8.5%

26.2
11.5%

87.3
29.3%

153.6
38.9%

89.5
29.7%

271.8
41.0%

248.2
39.0%

$
$
$

0.62
0.58
55.3
59.7

$
$
$

0.00
0.00
55.3
59.1

$
$
$

1.01
0.96
54.1
57.2

$
$
$

4.22
4.04
53.4
55.8

$
$
$

0.42
0.40
47.8
49.5

$
$
$

0.58
0.57
44.9
46.0

$
$
$

2.02
1.98
43.3
44.1

$
$
$

3.48
3.43
44.1
44.8

$
$
$

1.97
1.94
0.50
45.4
46.0

$
$
$

6.31
6.26
1.90
43.1
43.4

$
$
$

5.89
5.85
1.90
41.2
41.5

$
$
$

20.9
85.1
37.8

$
$
$

15.7
116.1
11.6

$
$
$

27.9
77.8
19.5

$
$
$

166.4
97.6
131.9

$
$
$

92.0
85.4
130.9

$
$
$

100.1
41.5
33.9

$
$
$

210.9
198.9
212.9

$
$
$

215.5
326.2
33.6

$
$
$

342.2
335.8
28.1

$
$
$

349.8
227.4
169.9

Inventories, raw materials

Inventories, work in progress

Inventories, purchased components

$
$

$
$

$
$

$
$

$
$

$
$

$
$

$
$

$
$

$
$

$
$

Inventories, finished goods

$
$

$
$

$
$

$
$

$
$

$
$

$
$

$
$

$
$

$
$

$
$

Prepaid Expenses
Current Deferred Income Taxes
Other Current Assets

$
$
$

8.6
-

$
$
$

8.0
5.2
-

$
$
$

8.4
42.1
-

$
$
$

14.5
43.5
-

$
$
$

19.3
43.7
-

$
$
$

16.5
49.0
-

$
$
$

11.1
68.5
-

$
$
$

9.1
35.1
-

$
$
$

8.8
54.0
-

$
$
$

30.2
37.0
-

$
$
$

31.4
42.1
-

Total Current Assets

Land and Improvements
Building and Improvements
Machinery, Furniture & Equipment
Construction in Progress
Other Fixed Assets
Total Fixed Assets
Net Fixed Assets
Intangible Assets
Goodwill
Non Current Deferred Income Taxes
Other Long-Term Assets
Total Long-Term Assets

$
$
$
$
$
$
$
$
$
$
$
$
$

152.4
0.7
5.9
40.2
2.3
49.1
12.1
32.2
8.4
52.8

$
$
$
$
$
$
$
$
$
$
$
$
$

156.6
0.7
8.3
30.1
13.9
53.0
10.7
41.0
27.2
6.5
85.3

$
$
$
$
$
$
$
$
$
$
$
$
$

175.7
0.7
8.5
33.2
15.3
57.6
10.7
59.5
48.7
5.0
123.8

$
$
$
$
$
$
$
$
$
$
$
$
$

453.8
0.7
9.2
40.9
18.8
69.5
16.7
70.5
6.4
16.7
110.3

$
$
$
$
$
$
$
$
$
$
$
$
$

371.4
0.7
10.7
51.0
23.9
86.3
24.6
87.1
14.8
37.0
163.5

$
$
$
$
$
$
$
$
$
$
$
$
$

241.0
0.7
11.5
80.5
92.7
21.0
125.5
7.7
10.5
164.7

$
$
$
$
$
$
$
$
$
$
$
$
$

702.3
0.7
11.6
32.1
44.4
10.4
119.2
31.7
42.2
203.5

$
$
$
$
$
$
$
$
$
$
$
$
$

619.6
0.7
11.9
34.6
47.3
8.3
130.3
71.8
44.7
255.1

$
$
$
$
$
$
$
$
$
$
$
$
$

768.9
0.7
12.3
38.1
51.1
8.0
138.0
54.1
28.0
228.1

$
$
$
$
$
$
$
$
$
$
$
$
$

814.3
0.7
12.5
41.3
54.5
7.8
177.6
30.7
26.2
242.3

$
$
$
$
$
$
$
$
$
$
$
$
$

903.9
7.2
7.2
7.2
192.5
31.2
19.1
250.0

Total Assets

205.2

241.9

299.5

564.1

534.9

405.8

905.8

874.6

997.0

1,056.6

1,153.9

Accounts payable
Short-Term Debt
Taxes Payable
Accrued Expenses
Accrued Liabilities
Deferred Revenues
Current Deferred Income Taxes
Other Current Liabilities

$
$
$
$
$
$
$
$

6.4
0.2
9.8
22.4
1.3

$
$
$
$
$
$
$
$

6.8
0.2
14.4
28.1
0.4

$
$
$
$
$
$
$
$

7.2
0.4
5.8
17.0
20.1
0.2

$
$
$
$
$
$
$
$

21.9
0.4
16.8
70.7
11.4

$
$
$
$
$
$
$
$

40.9
1.3
20.4
78.9
15.7

$
$
$
$
$
$
$
$

9.1
1.6
37.2
78.6
-

$
$
$
$
$
$
$
$

6.3
0.6
18.5
193.4
33.8

$
$
$
$
$
$
$
$

7.6
0.3
27.7
134.8
8.2

$
$
$
$
$
$
$
$

7.1
0.2
14.1
134.1
17.6

$
$
$
$
$
$
$
$

9.6
20.7
106.3
36.3

$
$
$
$
$
$
$
$

13.1
30.5
116.9
5.6

Total Current Liabilities

Long-Term Debt
Other Liabilities
Deferred Income Taxes
Total Long-Term Liabilities

$
$
$
$
$

40.1
1.8
65.8
67.6

$
$
$
$
$

49.8
1.7
74.8
76.4

$
$
$
$
$

50.5
1.6
73.1
74.7

$
$
$
$
$

121.2
1.2
166.2
167.4

$
$
$
$
$

157.2
2.4
238.2
240.6

$
$
$
$
$

126.5
1.3
190.3
191.6

$
$
$
$
$

252.6
0.5
483.2
483.7

$
$
$
$
$

178.6
0.2
342.8
343.0

$
$
$
$
$

173.2
192.5
159.6
352.1

$
$
$
$
$

172.9
200.4
164.6
365.0

$
$
$
$
$

166.0
204.5
265.1
473.5

Total Liabilities
Retained Earnings
Preferred Equity

$
$
$

107.7
(164.6)
0.0

$
$
$

126.3
(164.5)
-

$
$
$

125.2
(109.8)
-

$
$
$

288.6
115.4
-

$
$
$

397.8
133.3
-

$
$
$

318.1
159.5
-

$
$
$

736.2
246.8
-

$
$
$

521.5
395.8
-

$
$
$

525.3
466.7
-

$
$
$

537.9
659.2
-

$
$
$

639.5
647.8
-

Total Equity

97.5

115.7

174.3

275.5

137.1

87.7

169.5

353.1

471.7

518.7

514.4

Total Liabilities & Equity

205.2

241.9

299.5

564.1

534.9

405.8

905.8

874.6

997.0

1,056.6

1,153.9

$
$
$
$
$
$
$
$
$
$
$
$
$

26.2
28.9
1.8
97.0
3.2
(30.1)
(6.4)
3.1
(37.9)

$
$
$
$
$
$
$
$
$
$
$
$
$

87.3
22.9
(43.4)
(179.0)
3.0
(1.5)
12.6
4.4
414.6

$
$
$
$
$
$
$
$
$
$
$
$
$

153.6
22.1
(6.7)
179.3
(0.8)
0.4
(21.7)
3.1
(195.4)

$
$
$
$
$
$
$
$
$
$
$
$
$

89.5
30.3
(1.2)
5.6
20.7
(0.6)
(2.1)
(7.1)
(169.4)

$
$
$
$
$
$
$
$
$
$
$
$
$

271.8
35.4
40.4
(141.8)
2.5
22.5
(21.7)
(31.6)

$
$
$
$
$
$
$
$
$
$
$
$
$

246.9
39.3
27.5
(21.8)
0.2
3.5
(13.0)
(19.4)
175.5

Shares and EPS

Total Basic EPS
Fully Diluted EPS
Dividends Paid Per Share
Basic Shares Outstanding
Diluted Shares Outstanding
User Defined Shares Outstanding

Balance Sheet

MRQ

Assets
Cash and Equiv
Short-Term Investments
Net Receivables

-69.3%

% change from prev year

Inventories, other
Inventories

68.2%

575.0%

-0.7%

-74.1%

528.2%

-84.2%

-16.5%

$
$
$

505.0%

459.0
310.8
60.6
-64.3%

% change from prev year

Liabilities & Stockholders' Equity

Cash Flows Statement

TTM

Cash Flows From Operating Activities

Net Income
Depreciation & Amortization
Deferred Income Taxes
Operating Gains
Extraordinary Gains
(Incr) Decr. in Receivables
(Incr) Decr. in Inventories
(Incr) Decr. in Prepaid Expenses
(Incr) Decr. in Other Current Assets
Decr. (Incr) in payables
Decr. (Incr) in Other Current Liabilities
Decr. (Incr) in Other Working Capital
Other Non Cash Items

$
$
$
$
$
$
$
$
$
$
$
$
$

34.5
9.7
1.0
15.6
(0.8)
1.0
(1.5)
-

$
$
$
$
$
$
$
$
$
$
$
$
$

0.2
9.7
3.1
26.2
(2.5)
0.3
5.7
5.5

$
$
$
$
$
$
$
$
$
$
$
$
$

54.7
11.4
(37.3)
4.3
(7.9)
1.1
0.8
6.5
-

$
$
$
$
$
$
$
$
$
$
$
$
$

225.2
14.6
40.8
0.1
(112.3)
(3.3)
4.0
8.6
(10.3)
147.4

$
$
$
$
$
$
$
$
$
$
$
$
$

20.0
22.0
(8.6)
0.2
1.0
(5.4)
26.1
12.5
3.3
81.7

Net Cash From Operating Activities

59.6

48.2

33.7

314.8

152.7

85.8

320.7

133.9

(34.3)

177.6

438.7

(3.9)
(144.4)
(21.1)
(45.3)

$
$
$
$
$
$
$
$
$

(3.7)
(199.1)
(13.2)
(48.2)

$
$
$
$
$
$
$
$
$

(5.4)
0.2
(151.5)
(25.0)
8.0

$
$
$
$
$
$
$
$
$

(32.7)
(172.2)
(52.4)

$
$
$
$
$
$
$
$
$

(62.1)
(5.0)
(133.8)
(54.3)

$
$
$
$
$
$
$
$
$

170.4
(40.8)
(0.7)
(126.4)
2.6

$
$
$
$
$
$
$
$
$

156.6
(36.4)
(0.7)
(314.1)
(194.6)

$
$
$
$
$
$
$
$
$

(30.3)
(696.5)
(157.9)

$
$
$
$
$
$
$
$
$

(3.8)
(713.7)
(27.2)
(41.2)

$
$
$
$
$
$
$
$
$

(19.1)
(331.8)
(28.3)
63.0

$
$
$
$
$
$
$
$
$

(19.2)
(0.4)
(334.0)
(28.2)
(2.8)

$
$
$
$
$
$
$
$
$
$
$

19.2
(34.7)
(15.4)
(0.2)
(0.2)
(0.1)
(15.7)
22.3
20.9
(1.5)

$
$
$
$
$
$
$
$
$
$
$

12.2
(17.1)
(5.0)
(0.2)
(0.2)
(0.0)
(5.2)
20.9
15.7
(5.1)

$
$
$
$
$
$
$
$
$
$
$

4.9
(34.1)
(29.2)
(0.3)
(0.3)
(29.6)
15.7
27.9
12.1

$
$
$
$
$
$
$
$
$
$
$

40.6
(184.9)
(144.3)
(0.4)
(0.4)
(123.9)
27.9
166.4
138.5

$
$
$
$
$
$
$
$
$
$
$

6.5
(183.1)
(176.6)
(1.2)
(1.2)
(172.8)
166.4
92.0
(74.4)

$
$
$
$
$
$
$
$
$
$
$

2.2
(82.3)
(80.1)
(1.6)
(1.6)
(80.2)
92.0
100.1
8.1

$
$
$
$
$
$
$
$
$
$
$

7.6
(25.0)
(17.4)
(1.9)
(1.9)
(15.4)
100.1
210.9
110.7

$
$
$
$
$
$
$
$
$
$
$

21.5
21.5
(0.6)
(0.6)
28.6
210.9
215.5
4.6

$
$
$
$
$
$
$
$
$
$
$

36.2
36.2
230.0
(0.3)
229.7
(18.2)
202.3
215.5
342.2
126.8

$
$
$
$
$
$
$
$
$
$
$

2.1
(152.7)
(150.6)
(0.2)
(0.2)
(83.1)
(232.9)
342.2
349.8
7.6

$
$
$
$
$
$
$
$
$
$
$

2.2
(74.9)
(72.8)
(78.2)
(145.8)
349.8
639.9
290.0

$
$
$
$

59.6
3.9
55.6
25.9

$
$
$
$

48.2
3.7
44.5
(18.1)

$
$
$
$

33.7
5.4
28.3
60.2

$
$
$
$

314.8
32.7
282.1
467.9

$
$
$
$

152.7
62.1
90.6
48.4

$
$
$
$

85.8
40.8
45.0
(94.3)

$
$
$
$

320.7
36.4
284.3
648.8

$
$
$
$

133.9
30.3
103.6
(210.3)

$
$
$
$

(34.3)
3.8
(38.2)
(70.0)

$
$
$
$

177.6
19.1
158.5
395.0

$
$
$
$

438.7
19.2
419.5
493.1

Cash Flows From Investing Activities

Sale of Long-term Investments
Sale of Short-term Investments
Capital Expenditures
Acquisitions
Sale of Assets
Purchase of Long-term Investments
Purchase of Short-term Investments
Other Investing Changes, Net
Net Cash From Investing Activities

$
$
$
$
$
$
$
$
$

Cash Flows From Financing Activities

Issuance of Capital Stock
Repurchase of Capital Stock
Net Issuance of Stock
Issuance of Debt
Repayment of Debt
Net Issuance of Debt
Dividends Paid
Cash from Financing
Cash at Beginning of the Period
Cash at End of the Period
Change in Cash

Free Cash Flow

Cash from Operations
Cap Ex
Free Cash Flow
Owner Earnings FCF
User Defined

InterDigital, Inc.
(IDCC)

Enter Ticker

Refresh

Color Coding

8/21/2013
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

TTM

Financial Statistics & Ratios

Valuation Ratios
P/E

39.83

7279.56

18.88

7.74

49.58

45.06

12.60

12.87

20.63

7.01

6.08

P/E (cash adjusted)

36.76

6429.13

16.94

6.57

40.71

39.65

7.90

9.34

13.06

4.89

2.91

EV/EBITDA

32.31

292.36

32.57

4.22

11.78

-39.64

5.05

6.08

8.24

3.27

2.11

EV/Free Cash Flow

22.81

22.44

32.81

5.25

9.03

23.16

2.43

13.85

-35.65

9.64

2.18

P/S

11.98

10.88

6.33

3.63

4.23

5.17

3.70

5.01

6.12

2.87

2.32

P/BV

14.08

9.76

5.92

6.33

7.24

13.47

6.48

5.60

3.91

3.67

2.87

P/Tang BV

21.04

15.11

8.99

8.51

19.85

-31.17

21.83

8.87

5.53

5.59

4.58

P/CF

38.48

-4624.32

11.28

7.06

10.17

45.65

8.20

11.28

15.22

5.89

4.86

P/FCF

24.68

25.36

36.48

6.18

10.95

26.25

3.87

19.08

-48.36

12.02

3.52

ROE

35.4%

0.1%

31.4%

81.8%

14.6%

29.9%

51.5%

43.5%

19.0%

52.4%

48.2%

ROA

16.8%

0.1%

18.3%

39.9%

3.7%

6.5%

9.6%

17.6%

9.0%

25.7%

21.5%

ROIC

58.5%

0.2%

38.2%

125.9%

10.0%

19.9%

36.2%

85.2%

66.7%

91.9%

115.5%

CROIC

94.0%

73.8%

19.8%

157.7%

45.3%

32.7%

116.8%

67.1%

-26.2%

51.7%

192.4%

GPA (Gross Profitability to Assets)

55.8%

42.9%

54.5%

76.1%

31.2%

41.8%

28.6%

45.1%

23.1%

50.8%

42.5%

7.1%

10.3%

16.9%

15.8%

13.8%

7.4%

15.4%

17.9%

25.6%

27.2%

34.9%

Quick Ratio

3.80

3.14

3.48

3.74

2.36

1.90

2.78

3.47

4.44

4.71

5.44

Current Ratio

3.80

3.14

3.48

3.74

2.36

1.90

2.78

3.47

4.44

4.71

5.44

Total Debt/Equity Ratio

0.02

0.02

0.01

0.01

0.03

0.03

0.01

0.00

0.41

0.39

0.40

Long Term Debt/Equity Ratio

Short Term Debt/Equity Ratio

0.02

0.01

0.01

0.00

0.02

0.02

0.00

0.00

0.41

0.39

0.40

0.00

0.00

0.00

0.00

0.01

0.02

0.00

0.00

0.00

0.00

0.00

Book to Market

Solvency

Efficiency Ratios
Asset Turnover

0.56

0.43

0.54

0.85

0.44

0.56

0.33

0.45

0.30

0.63

0.55

Cash % of Revenue

18.2%

15.2%

17.1%

34.6%

39.3%

43.8%

70.9%

54.6%

113.4%

52.8%

72.1%

Receivables % of Revenue

33.0%

11.2%

12.0%

27.4%

55.9%

14.8%

71.6%

8.5%

9.3%

25.6%

9.5%

SG&A % of Revenue

34.1%

56.7%

50.8%

5.7%

13.7%

15.6%

27.2%

22.1%

10.4%

5.6%

5.3%

R&D % of Revenue

40.1%

49.4%

38.7%

13.6%

37.2%

70.1%

21.5%

18.1%

21.1%

10.2%

9.9%

34.7

Liquidity Ratios
Days Sales Outstanding

120.5

40.9

43.7

100.2

203.9

54.1

261.3

31.1

34.0

93.5

Days Inventory Outstanding

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Days Payable Outstanding

0.0

0.0

0.0

156.6

220.6

56.6

59.4

0.0

36.2

27.7

32.6

Cash Conversion Cycle

0.0

0.0

0.0

-56.5

-16.7

-2.4

201.9

0.0

-2.2

65.8

2.2

Receivables Turnover

3.03

4.19

10.47

6.35

1.78

2.77

2.41

3.20

9.78

6.70

5.53

Inventory Turnover

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Average Age of Inventory (Days)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

33.1%

35.4%

34.1%

25.6%

63.5%

143.2%

70.3%

36.9%

29.2%

34.2%

37.4%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

LT-Debt as % of Invested Capital

3.0%

2.8%

1.1%

0.7%

1.2%

1.0%

0.2%

0.1%

132.0%

65.4%

93.8%

ST-Debt as % of Invested Capital

0.3%

0.4%

0.2%

0.2%

0.7%

1.2%

0.2%

0.2%

0.1%

0.0%

0.0%

LT-Debt as % of Total Debt

90.2%

88.7%

81.8%

76.5%

64.7%

45.1%

44.5%

38.5%

99.9%

100.0%

100.0%

ST-Debt as % of Total Debt

9.8%

11.3%

18.2%

23.5%

35.3%

54.9%

55.5%

61.5%

0.1%

0.0%

0.0%

Total Debt % of Total Assets

1.0%

0.8%

0.6%

0.3%

0.7%

0.7%

0.1%

0.1%

19.3%

19.0%

17.7%

Working Capital % of Price

8.2%

9.5%

12.1%

19.1%

21.6%

9.7%

40.9%

22.3%

32.3%

33.7%

50.0%

Intangibles % of Book Value

Inventory % of Revenue

Capital Structure Ratios

Quality Scores
Piostroski F Score

6.00

5.00

7.00

8.00

4.00

8.00

8.00

7.00

2.00

8.00

6.00

Altman Z Score (Original)

8.42

5.31

5.70

7.52

2.96

4.02

2.62

4.78

4.23

5.68

3.03

Altman Z Score (Revised)

15.74

9.94

10.66

15.05

6.46

7.72

6.56

10.42

10.05

12.43

8.52

Beneish M Score (5 Variable)

-3.21

-2.33

-0.67

-1.87

-3.38

0.06

-3.34

-2.87

-0.67

-3.45

Beneish M Score (8 Variable)

-4.01

-1.42

-0.38

-3.14

-3.80

-0.24

-2.72

-2.13

0.68

-3.83

InterDigital, Inc.
(IDCC)
8/21/2013
Enter Ticker

Refresh

Figures in Millions except per share values

Free Cash Flow

2003
$55.6
% Change

2004
$44.5
-20.0%

Owner Earnings

2005
$28.3
-36.4%

2006
$282.1
896.7%

2007
$90.6
-67.9%

2008
$45.0
-50.4%

2009
$284.3
531.9%

2010
$103.6
-63.6%

2011
-$38.2
-136.9%

2012
$158.5
515.3%

TTM
$419.5
164.6%

EBITDA

2003
$39.3
% Change

2004
$3.4
-91.3%

2005
$28.5
734.8%

2006
$351.0
1131.4%

2007
$69.5
-80.2%

2008
-$26.3
-137.9%

2009
$136.8
620.2%

2010
$235.9
72.5%

2011
$165.1
-30.0%

2012
$467.0
182.8%

TTM
$433.1
-7.3%

2004
42.9%
-11.6%

2005
17.3%
-59.6%

2006
58.7%
238.4%

2007
38.7%
-34.1%

2008
19.7%
-49.1%

2009
95.6%
385.4%

2010
26.3%
-72.5%

2011
-12.7%
-148.2%

2012
23.9%
289.0%

TTM
65.9%
175.4%

2004
73.8%
-21.5%

2005
19.8%
-73.2%

2006
157.7%
698.4%

2007
45.3%
-71.3%

2008
32.7%
-27.7%

2009
116.8%
257.1%

2010
67.1%
-42.6%

2011
-26.2%
-139.0%

2012
51.7%
297.6%

TTM
192.4%
271.8%

2008
-$94.3
-294.8%

2009
$648.8
787.7%

2010
-$210.3
-132.4%

2011
-$70.0
66.7%

2012
$395.0
664.6%

TTM
$493.1
24.8%

2004
0.3%
-88.9%

2003
2004
100.0%
100.0%
% Change 0.0%

2005
3.1%
797.6%

2006
23.7%
671.6%

2007
8.5%
-64.2%

2008
-2.5%
-129.7%

2009
19.8%
884.9%

2010
16.4%
-17.0%

2011
12.1%
-26.2%

2012
30.5%
151.8%

TTM
47.4%
55.3%

2005
$0.96
########

2006
$4.04
322.1%

2007
$0.40
-90.0%

2008
$0.57
41.1%

2009
$1.98
247.2%

2010
$3.43
73.1%

2011
$1.94
-43.3%

2012
$6.26
222.1%

TTM
$5.85
-6.6%

2004
25.4
2.8%

2005
36.5
43.8%

2006
6.2
-83.0%

2007
10.9
77.0%

2008
26.2
139.8%

2009
3.9
-85.3%

2010
19.1
393.3%

2011
-48.4
-353.5%

2012
12.0
124.9%

TTM
3.5
-70.8%

2004
3.9%
-2.7%

2005
2.7%
-30.5%

2006
16.2%
489.9%

2007
9.1%
-43.5%

2008
3.8%
-58.3%

2009
25.9%
578.7%

2010
5.2%
-79.7%

2011
-2.1%
-139.4%

2012
8.3%
502.4%

TTM
28.4%
241.9%

2005
100.0%
0.0%

2006
89.4%
-10.6%

2007
71.1%
-20.4%

2008
74.2%
4.3%

2009
87.0%
17.2%

2010
100.0%
14.9%

2011
76.2%
-23.8%

2012
81.0%
6.2%

TTM
76.9%
-5.0%

2005
7.0
40.0%

2006
8.0
14.3%

2007
4.0
-50.0%

2008
8.0
100.0%

2009
8.0
0.0%

2010
7.0
-12.5%

2011
2.0
-71.4%

2012
8.0
300.0%

TTM
6.0
-25.0%

2003
4.1%
% Change

2003
2004
33.7%
-3.6%
% Change -110.8%

2005
14.9%
508.7%

2006
100.1%
571.5%

2007
13.4%
-86.6%

2008
30.8%
130.1%

2009
24.7%
-19.7%

2010
48.1%
94.5%

2011
22.4%
-53.4%

2012
65.2%
190.6%

TTM
50.4%
-22.8%

2005
33.5%
########

2006
46.9%
39.8%

2007
8.5%
-81.8%

2008
11.5%
34.3%

2009
29.3%
155.8%

2010
38.9%
32.7%

2011
29.7%
-23.8%

2012
41.0%
38.3%

TTM
39.0%
-5.0%

2005
5.7
7.4%

2006
7.5
31.8%

2007
3.0
-60.6%

2008
4.0
35.7%

2009
2.6
-34.9%

2010
4.8
82.7%

2011
4.2
-11.4%

2012
5.7
34.1%

TTM
3.0
-46.6%

2005
-170.0%
-264.4%

2006
35.6%
120.9%

2007
37.5%
5.4%

2008
34.4%
-8.2%

2009
22.6%
-34.4%

2010
39.2%
73.7%

2011
28.2%
-28.1%

2012
33.5%
18.7%

TTM
32.9%
-1.8%

2003
2004
2005
2006
2007
2008
2009
2010
2011
2824.1% 2361.1% 1472.5% ######## 2437.7% 1535.9% ######## ######## -19.8%
% Change -16.4%
-37.6% 1118.6% -86.4%
-37.0% 1659.4% -18.1% -100.1%

2012
79.1%
499.4%

TTM
205.1%
159.2%

2012
79.1%
499.0%

TTM
205.1%
159.2%

2003
30.1%
% Change

2004
0.1%
-99.5%

2005
-1.4
64.7%

2006
-0.4
73.2%

2007
-3.1
-728.6%

2003
8.4
% Change

2004
5.3
-36.9%

Tax Rate

2008
-3.8
-21.0%

2009
-0.2
93.6%

2010
-2.7
-1014.9%

2011
-2.1
21.8%

2012
0.7
131.8%

TTM
-3.8
-665.5%

Debt to Equity

2003
2004
110.5%
109.2%
% Change -1.2%

2003
24.7
% Change

Original Altman Z Score

Beneish M Score - 8 Variable Version

2003
2004
-4.0
% Change #DIV/0!

2004
$0.00
-99.5%

Net Profit Margin

Piotroski F score

2004
5.0
-16.7%

2003
$0.58
% Change

Magic Formula Investing -- Return on Capital

Gross Margin

2003
6.0
% Change

2007
$48.4
-89.7%

FCF Yield

Magic Formula Investing -- Earnings Yield

2003
3.1%
% Change

2006
$467.9
677.5%

Price / FCF

Cash Return on Invested Capital (CROIC)

2003
94.0%
% Change

2005
$60.2
432.1%

Diluted EPS

FCF / Sales

2003
48.6%
% Change

2003
2004
$25.9
-$18.1
% Change -169.9%

2003
2004
17.4%
103.4%
% Change 493.7%

FCF to Total Debt

2005
71.8%
-34.2%

2006
104.8%
45.8%

2007
290.2%
177.0%

2008
362.9%
25.0%

2009
434.3%
19.7%

2010
147.7%
-66.0%

2011
111.4%
-24.6%

2012
103.7%
-6.9%

TTM
124.3%
19.9%

FCF to Short Term Debt

FCF to Long Term Debt

2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
TTM
######## ######## 8086.3% ######## 6911.4% 2797.6% ######## ######## ########
% Change -27.2%
-61.5%
845.4%
-91.0%
-59.5% 1639.9% -26.1% -159.0% #VALUE! #VALUE!

2003
2004
2005
2006
2007
2008
2009
2010
2011
3130.8% 2660.5% 1800.4% ######## 3766.0% 3405.5% ######## ######## -19.8%
% Change -15.0%
-32.3% 1202.5% -83.9%
-9.6%
1683.7%
-5.3%
-100.0%

InterDigital, Inc.
(IDCC)

Shares Out.
41.182

M.O.S

41.18

Enter Ticker
Fiscal Year
Cash Flow Data

Refresh

CLEAR

Trend

2003

Cash from Operations

Capex
Cash Flow
Free Cash Flow

Discount %

5.0%

12.0%

Terminal %

Select FCF

2%

FCF

50%

Select input with

each list or enter
your own value

8/21/2013

Growth

Adjust 2012 FCF

5.0%

Current Price

$35.57

Fair Value

2004

Buy Under

Actual M.O.S

52 Wk High

52 Wk Low

$27.48

35%

$48.68

$32.15

2006

2007

2008

2009

54.96
2005

2010

2011

$59.6
($3.9)
$35.7
$55.6
YOY% Change

$48.2
($3.7)
($0.2)
$44.5
-20.0%

$33.7
($5.4)
$91.5
$28.3
-36.4%

$314.8
($32.7)
$247.2
$282.1
896.7%

$152.7
($62.1)
$97.5
$90.6
-67.9%

$85.8
($40.8)
$25.9
$45.0
-50.4%

$320.7
($36.4)
$134.1
$284.3
531.9%

$133.9
($30.3)
$175.3
$103.6
-63.6%

($34.3)
($3.8)
$121.3
($38.2)
-136.9%

100.0%
25.8%
30.1%

100.0%
-6.1%
0.1%

100.0%
10.5%
33.5%

89.4%
70.0%
46.9%

71.1%
20.3%
8.5%

74.2%
-24.1%
11.5%

87.0%
38.3%
29.3%

100.0%
54.2%
38.9%

$0.58
17.4%

$0.00
103.4%

$0.96
-170.0%

$4.04
35.6%

$0.40
37.5%

$0.57
34.4%

$1.98
22.6%

94.0%
48.6%

73.8%
42.9%

19.8%
17.3%

157.7%
58.7%

45.3%
38.7%

32.7%
19.7%

16.8%
35.4%

0.1%
0.1%

18.3%
31.4%

39.9%
81.8%

3.7%
14.6%

110.5%
1.8%
28.2
288.3
31.3

109.2%
1.4%
23.6
209.8
26.6

71.8%
0.9%
14.7
80.9
18.0

104.8%
0.4%
179.4
764.5
234.5

2008-2012
0.0%
37.0%
51.7%
23.9%
9.6%
43.5%
81.0%
44.7%
29.7%
30.5%
82.1%
19.9%

2007-2010
64.6%
4.6%
56.2%
32.5%
8.0%
36.7%
80.6%
29.3%
20.4%
19.0%
103.9%
-4.3%

2008-2011
0.0%
0.0%
49.9%
23.0%
9.3%
36.7%
81.6%
41.5%
29.5%
9.7%
50.5%
0.0%

2004-2011
23.8%
0.0%
56.2%
32.5%
9.3%
30.6%
88.2%
29.3%
29.5%
16.5%
157.0%
0.0%

2005-2012
16.8%
27.9%
48.5%
25.1%
13.6%
37.4%
84.0%
41.5%
31.6%
22.2%
30.8%
26.8%

2003-2008
0.0%
-4.2%
59.5%
40.8%
11.6%
30.6%
94.7%
15.4%
20.8%
14.8%
-0.3%
7.6%

2012

TTM

$177.6
($19.1)
$323.3
515.3%

$438.7
($19.2)
$303.5
$419.5
164.6%

76.2%
44.7%
29.7%

81.0%
65.1%
41.0%

76.9%
61.8%
39.0%

$3.43
39.2%

$1.94
28.2%

$6.26
33.5%

$5.85
32.9%

116.8%
95.6%

67.1%
26.3%

-26.2%
-12.7%

51.7%
23.9%

192.4%
65.9%

6.5%
29.9%

9.6%
51.5%

17.6%
43.5%

9.0%
19.0%

25.7%
52.4%

21.5%
48.2%

290.2%
1.7%
24.4
69.1
37.7

362.9%
1.5%
15.4
28.0
34.1

434.3%
0.3%
270.2
486.8
607.4

147.7%
0.1%
221.3
359.7
575.5

111.4%
29.0%
-0.2
-212.1
-0.2

103.7%
27.9%
0.8

124.3%
28.4%
2.1

0.8

2.1

2009-2012
89.2%
-17.7%
59.4%
25.1%
13.6%
47.5%
84.0%
49.4%
34.3%
30.6%
46.8%
-17.9%

2007-2009
0.4%
77.1%
45.3%
38.7%
6.5%
29.9%
74.2%
20.3%
11.5%
12.7%
121.3%
44.9%

2008-2010
0.0%
51.7%
67.1%
26.3%
9.6%
43.5%
87.0%
38.3%
29.3%
31.4%
145.2%
24.9%

2009-2011
157.4%
0.0%
67.1%
26.3%
9.6%
43.5%
87.0%
44.7%
29.7%
0.7%
-0.9%
0.0%

2010-2012
23.7%
23.7%
51.7%
23.9%
17.6%
43.5%
81.0%
54.2%
38.9%
29.6%
35.2%
15.2%

Median
23.7%
4.6%
51.7%
26.3%
9.6%
43.5%
81.0%
41.5%
29.5%
19.0%
50.5%
0.0%

2004-2009
-7.6%
44.9%
59.5%
40.8%
8.0%
30.6%
88.2%
15.4%
20.4%
23.5%
276.3%
46.1%

2005-2010
14.2%
29.6%
56.2%
32.5%
13.6%
37.4%
88.2%
29.3%
31.4%
19.3%
29.1%
31.8%

2006-2011
10.2%
0.0%
56.2%
32.5%
9.3%
36.7%
81.6%
41.5%
29.5%
-8.9%
-13.6%
0.0%

2007-2012
46.8%
11.8%
48.5%
25.1%
9.3%
36.7%
78.6%
41.5%
29.5%
23.1%
73.0%
3.1%

2003-2012
20.2%
12.3%
51.7%
32.5%
13.2%
33.4%
88.2%
32.0%
29.9%
21.5%
30.3%
12.9%

Median
16.8%
11.8%
56.2%
32.5%
11.6%
33.4%
88.2%
29.3%
29.5%
19.3%
30.3%
12.3%

$158.5

Margins
Gross Margin
Operating Margin
Net Margin

EPS & Tax

Diluted EPS
Tax Rate

Efficiency & Profitability

CROIC
FCF/Sales
Inventory Turnover
Return On Assets (ROA)
Retun On Equity (ROE)

Debt Related
Debt to Equity
Capitalization Ratio
FCF to Total Debt
FCF to Short Term Debt
FCF to Long Term Debt

5 Year Multi-Year Performance

Tang Shareholder Equity
Free Cash Flow
CROIC
FCF/Sales
ROA
ROE
Gross Margin
Operating Margin
Net Margin
Revenue Growth
Earnings Growth
Cash from Ops Growth

2007-2011
60.8%
0.0%
45.3%
26.3%
9.0%
29.9%
76.2%
38.3%
29.3%
6.5%
48.1%
0.0%

10 Year Multi-Year Performance

Tang Shareholder Equity
Free Cash Flow
CROIC
FCF/Sales
ROA
ROE
Gross Margin
Operating Margin
Net Margin
Revenue Growth
Earnings Growth
Cash from Ops Growth

2003-2010
19.2%
9.3%
70.4%
40.8%
13.2%
33.4%
94.7%
23.0%
29.7%
19.3%
29.0%
12.3%

Projection of future Free Cash Flow

2013
Yearly Growth Input Field
5%
Terminal Growth
2%

$166.46
2023
251.47

2014

2015

$174.79
2024
256.50

Calculation
Total Cash

$
MAX(0,Current Liabilities-Current Assets)
$
Excess Cash
$
Adding some Intangibles
$
Interest Bearing Debt
Present Value
$
Shares Outstanding
Per Share Value
$
Desired Margin of Safety
Purchase Price
$
Current Price
$
Margin of Safety

$183.53
2025
261.63

$191.79
2026
266.86

2017

2018

$200.42
2027
272.20

$209.43
2028
277.65

2019

$218.86
2029
283.20

2020

$227.72
2030
288.86

2021

$236.95
2031
294.64

2022

$246.54
2032
300.53

Sensitivity Matrix: Growth vs Discount Rate

769.79
769.79
$110.50
2,263.45
41.182
54.96
50%
27.48
35.57
35%

Discount Rates
1% $
3% $

Growth Rates

0%
10%
10%

5%

$
7% $
9% $

10%
51.63 $
56.10 $

11%
49.21 $
53.27 $

61.17
66.94
73.48

57.89
63.12
69.05

$
$
$

$
$
$

12%
47.04
50.75

$
$

13%
45.10 $
48.50 $

14%
43.35
46.47

54.96

$
$
$

52.34
56.69
61.61

50.00
53.98
58.46

59.73
65.12

$
$
$

Sensitivity Matrix: Margin of Safety %

Discount Rates

Growth Rates

Variable Fields
Intangibles% add to DCF
Decay Rate (Yr4E-Yr7E)
Extra Decay (Yr8E-Yr10E)

2016

1%

10%
31.1%

11%
27.7%

3%

36.6%

5%

41.9%
46.9%
51.6%

7%
9%

12%
24.4%

13%
21.1%

14%
17.9%

33.2%

29.9%

26.7%

23.5%

38.6%
43.6%
48.5%

35.3%

32.0%
37.3%
42.3%

28.9%
34.1%
39.2%

40.4%
45.4%

Current EPS
Exp Growth Dividend Yield

InterDigital, Inc.
(IDCC)

0%

8/21/2013
Enter Ticker

1.12%

Expected PE

Refresh

Katsenelson Absolute PE

Determine Financial Risk

Current Ratio
Consistency/quality check
Total Debt/Equity Ratio
Consistency/quality check
Short Term Debt/Equity Ratio
Consistency/quality check
FCF to Total Debt
Consistency/quality check

Financial Risk Factor:

Adjusted Base PE
Business Risk
Premium/Discount Factor:
Financial Risk
Premium/Discount Factor:
Earnings Predictability
Premium/Discount Factor:
Adjusted Fair Value PE

Average

Excellent

Average

10 of 20 pts

19 of 20 pts

10 of 20 pts

10

10

M.O.S

$35.57

$44.99

7.70

6.06

1%

21%

2008
29.90%

2009
51.47%
1
9.63%
1
116.78%
1
70.29%
1

2010
43.50%
1
17.56%
1
67.09%
1
36.90%
1

2011
18.97%
0
8.97%
0
-26.18%
0
29.25%
1

2012
52.40%
1
25.72%
1
51.74%
1
34.23%
0

TTM
48.25%
1
21.51%
1
192.35%
1
37.42%
0

6.46%
32.70%
143.21%

15 pts out of 20
2008
1.90
0.03
0.02
1535.88%

Above Average 5% Factor

2009
2.78
1
0.01
1
0.00
1
27021.86%
1

2010
3.47
1
0.00
1
0.00
1
22134.40%
1

19 pts out of 20
2008
74.23%
11.47%
$0.57
$85.81

2009
87.02%
1
29.34%
1
$1.98
1
$320.69
1

12 pts out of 20

0.00%
1.12%

2011
4.44
1
0.41
1
0.00
1
-19.81%
0

2012
4.71
1
0.39
1
0.00
1
79.11%
1

TTM
5.44
1
0.40
1
0.00
1
205.08%
1

Excellent 9% Factor
2010
100.00%
1
38.93%
1
$3.43
1
$133.92
0

2011
76.23%
0
29.65%
0
$1.94
0
-$34.34
0

2012
80.95%
1
40.99%
1
$6.26
1
$177.61
1

TTM
76.94%
0
38.96%
0
$5.85
0
$438.69
1

Above Average 2% Factor

Katsenelson Absolute PE Valuation Model

Earnings Growth
Dividend Yield

Earnings
Safety

Current Price Fair Value Fair Value PE Current PE FV Exp Grth

Determine Earnings Predictability

Gross Margin
Consistency/quality check
Net Margin
Consistency/quality check
Earnings
Consistency/quality check
Cash from Ops
Consistency/quality check

Earnings Predict. Factor:

Financial
Safety

CLEAR

Determine Business Risk

ROE
Consistency/quality check
ROA
Consistency/quality check
CROIC
Consistency/quality check
Intangibles % of Book Value
Consistency/quality check

Business Risk Factor:

Business
Safety

6.06
1.00
=
7.06
x
Average
[1 + (1 - 1)]
1.00
x
Excellent [1 + (1 - 0.91)]
0.91
x
Average
[1 + (1 - 1)]
1.00
=
1%
7.70

P/E
7.00
7.65
8.30
8.95
9.60
10.25
10.90
11.55
12.20
12.85
13.50
14.15
14.80
15.45
16.10
16.75
17.40
17.90
18.40
18.90
19.40

Exp EPS Grwth Rate

0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%

19.90

21%

20.40
20.90
21.40
21.90

22%
23%
24%
25%

0.65

0.50

Dividend Yield
0.0%
0.1%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
10.0%

AVERAGE
40.7%
4
15.0%
4
72.4%
4
58.6%
3

STDEV
13.5%

15

0.0%

7.8%
75.0%
44.0%

AVERAGE STDEV
3.79
1.32
5
0.21
0.21
5
0.00
0.01
5
8492.8% 12567.9%
4

19

0.0%

AVERAGE
82.6%
3
31.6%
3
3.34
3
$187.06
3

STDEV
9.7%

12

0.0%

11.0%
2.29
169.33

Add'l P/E Points

0.0
0.5
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
10.0

InterDigital, Inc.
(IDCC)

41.182

Shares Out.

Main. Capex

Normalized Income

41.18

$23.50

$154.00

8/21/2013

Discount Rate

R&D Years

SG&A %

9%

25%

$154.00

Figures in Millions except per share values

Enter Ticker

Refresh

CLEAR

Current Price

EPV

Net Reproduction Value

EPV MOS

NCAV

52 Wk High

52 Wk Low

$35.57

$48.78

$7.74

27.1%

$6.42

$48.68

$32.15

Asset Valuation Section

EPV Valuation Section

Data: Asset Valuation

Values for Normalized Income

Shares Outstanding
Balance Sheet Assets
Adjusted Assets
Total Liabilities
Total Equity
Average SGA %

41.2
1,122.7
1,122.7
639.5
514.4
16.2%

TTM Free Cash Flow

Avg Normalized Income
Med Normalized Income
Avg Adj. Income 5 yrs
TTM Adjusted Income

$
$
$
$

Marketing/Brand Value

107.4

Data: EPV

R&D Value
Cash Needed for Business
Interest Bearing Debt
Non Interest Bearing Debt
Excess Cash

$
$
$
$
$

159.4
6.4
204.5
314.3
756.5

Cost of Capital
Normalized Adjusted Income
Average Maintenance Capex
Interest Bearing Debt
1% of sales
Cash & Equiv

Quarterly numbers based on:

Adjustments:
Assets

$
$
$
$
$

Marketable Securities
Accounts Receivable
Other Receivable
Net Receivables

$
$
$
$

Other Long Term Assets, Total

Total Assets

$
$
$
$
$
$

9.0%
154.0
23.5
204.5
6.4
769.8

$30
$20

$10
$0

558.9
41.18

Book Value

Net Repro Value

EPV

Cost of Capital Rates

5%
7%

$
$

EPV
2,610.0
1,864.3

Per Share
$
63.38
$
45.27

+ Cash - Debt
$
3,168.9
$
2,423.2

9%

11%
13%

$
$

$
$

Per Share
76.95
58.84

1,450.0

35.21

1,186.4
1,003.9

$
$

28.81
24.38

$
$

2,008.9

48.78

1,745.3
1,562.7

$
$

42.38
37.95

Q2

Cash & Equivalents

Inventories: Work in Progress

Inventories: Purchased Components
Inventories: Finished Goods
Inventories: Other
Inventories -- Total
Prepaid Expenses
Current Defered Income Taxes
Other Current Assets
Total Current Assets
Goodwill, Net
Intangibles, Net
Intangibles
Property/Plant/Equipment - Net

$60

Calculation: EPV

11.73
6.42
33.74
18.21
7.74

Book Value Fixed BV

$
459.0

Inventories: Raw Materials

EPV > Net Repro Value = Moat exists

EPV = Net Repro Value = No Moat
EPV < Net Repro Value = Value Destroyer

$40

Cash - Debt
Shares

Total
Per Share
290.65 $
7.06

$
483.15
$
264.37
$ 1,389.48
$
749.97
$
318.67

419.5
172.8
165.7
154.6
277.1

$50

Calculation: Asset Valuation

Tangible BV
Adjusted BV
NCAV
Reprod. Cost of Assets
Reprod. Cost of Assets BV
Total Net Reprod. Cost

$
$
$
$
$

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

310.8
60.6
60.6

Multiplier

Reproduction
Asset Value
$
459.0
$
$
$
$

310.8
60.6
60.6

31.4
42.1
903.9
192.5
192.5
7.2
19.1
1,122.7

$
$
$
$
$
$
$
$
$
$
$

31.4
42.1
903.9
192.5
192.5
7.2
19.1
1,122.7

Adjustments:
Liabilities & Equity
Accounts Payable
Accrued Expenses
Accrued Liabilities
Notes Payable/Short Term Debt
Current Port. of LT Debt/Capital
Leases
Other Current Liabilities
Total Current Liabilities
Long-Term Debt
Capital Lease Obligations
Deferred Income Taxes
Total Other Liabilities
Total Liabilities
Common Stock Equity
Retained Earnings
Total Capitalization
Total Equity
Total Liabilities & Equity

Book Value
$
13.1
$
$
30.5
$
$
$
$
$
$
$
$
$
$
$
$
$
$

5.6
49.2
204.5
265.1
639.5
514.4
647.8
718.9
514.4
1,153.9

Fixed BV

Multiplier

Reproduction
Liability Value
$
13.1
$
$
30.5
$

$
$

5.6

49.2

$
$
$
$

204.5
265.1

639.5

$
$
$

514.4
647.8
718.9

$
$

514.4
1,153.9

InterDigital, Inc.
(IDCC)
8/21/2013
Enter Ticker

Current Price

NNWC

NNWC %

NCAV

NCAV %

$35.57

$4.27

0.0%

$6.42

0.0%

BV

CLEAR

BV
Multiplier
100%

Net Net Value

$
769.79

Refresh

Figures in Millions except per share values

Cash & Equivalents
Marketable Securities
Accounts Receivable
Other Receivable
Receivables
Inventories: Raw Materials
Inventories: Work in Progress
Inventories: Purchased Components
Inventories: Finished Goods
Inventories: Other
Inventories -- Total
Current Assets - Total
Total Assets
Total Liabilities
Shares Outstanding

$
$
$
$
$
$
$
$
$
$
$
$
$
$

459.02
310.77
60.61
60.61
903.88
1,153.90
639.51
41.18

Total Current Assets

Market Cap & Share Price
Book Value
Net Net Working Capital
Discount to NNWC
Net Current Asset Value
Discount to NCAV

75%
$

45.46

50%

$
1.465B
$
$
$

$
$
$
$

903.88
1,153.90
639.51
41.18

Total ($m)
903.88 $
$
514.39 $
175.74 $

Per Share
21.95
35.57
12.49
4.27
0%
6.42
0%

264.37

jaetest

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