Value
5.2/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 4.7 |
| P/S | 4.2 |
| EV/EBITDA | 3.8 |
| Fwd P/E | 5.0 |
| PEG | 3.4 |
| Analyst target | 9.0 |
- ▸Forward P/E: 25.2x
- ▸PEG: 3.57
IDCC · Why this verdict
Why InterDigital (IDCC) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score5.4/10
ConfidenceMEDIUM
MacroNEUTRAL
Per-dimension breakdown
Quality
8.9/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 10.0 |
| ROA | 8.7 |
| Gross margin | 10.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 6.6 |
| FCF quality | 9.2 |
| Moat | 6.5 |
| Rule of 40 | 8.7 |
| Piotroski F | 8.9 |
- ▸Excellent ROE: 36%
- ▸Strong margins: 44%
- ▸Excellent cash conversion: 126% FCF/NI
- ▸Rule of 40: 53 (pass)
Growth
2.6/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 1.9 |
| EPS growth | 3.4 |
- ▸Declining revenue: -2%
Momentum
7.3/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.4 |
| MACD | 10.0 |
| OBV | 10.0 |
| MA position | 5.2 |
| Volume | 7.7 |
- ▸Volume accumulation (rising OBV)
- ▸Below 200-MA but MA still rising (+0.7%/30d) — pullback in uptrend, not confirmed weakness
Sentiment
7.2/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 5.2 |
| Analyst rating | 6.8 |
| Price target | 9.8 |
- ▸Light analyst coverage (3.0) — signal dampened
- ▸Analyst upside: 63%
Insider
3.9/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 4.5 |
| insider conviction | 2.0 |
| holder change | 5.1 |
- ▸Modest insider selling — $3,808,735 (0.052% of mkt cap)
Peer rank
3.1/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 3.0 |
| quality rank | 9.2 |
| growth rank | 0.2 |
- ▸Superior ROE vs peers
- ▸Best-in-class margins
Technical
2.3/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 0.0 |
| support resistance | 3.0 |
| 52w position | 3.8 |
Risk (lower is worse)
4.7/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 4.1 |
| days to cover | 3.9 |
| volatility | 2.4 |
| put call | 3.3 |
| implied vol | 2.9 |
| max pain risk | 7.0 |
| beta | 5.3 |
| debt equity | 8.5 |
- ▸High IV: 62%
- ▸Concentration risks: 3 MED (10-K Item 1A)
Catalyst
7.2/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 10.0 |
| dividend safety | 5.2 |
| news activity | 8.0 |
- ▸Perfect beat streak: 4Q
- ▸Dividend: 99.0%
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (8)
- MOMENTUM:7.3>=5.5
- ASYMMETRY:3.2>=1.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:46d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (0)
none
Warning (0)
none
Reward-to-Risk
3.17
Upside
+38.6%
Downside
12.2%
Sizing output
AVOID
SetupRECOVERY — Death cross but MACD improving, RSI 66
EdgeNO_EDGE — No clear edge identified
SuitabilityAGGRESSIVE — Beta 1.43>1.3
Investment implication
The F-path SELL output reflects an overall score of 5.4 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Quality at 8.9) was not enough to lift the adjusted overall above the threshold. Current asymmetry R:R is 3.17 — supplementary context, not the trigger for this path.
The strongest dimensions are Quality at 8.9, Momentum at 7.3, and Sentiment at 7.2; the weakest are Technical at 2.3, Growth at 2.6, and Peer rank at 3.1. The V9 engine cleared all gates, producing an asymmetric reward-to-risk of 3.17 and an engine sizing output of AVOID.