Is IDCC a high-quality business?

AlphaMadera's AlphaQuality grade scores InterDigital, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how IDCC compares to a Buffett-style quality bar.

What is InterDigital, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to IDCC based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes IDCC a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

IDCC - InterDigital, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $425.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

A 87.3 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

A 87.9

5yr Avg ROIC 16.1% 83/100
Operating Margin Trend +9.48 pp/yr 100/100

Capital Efficiency

Weight: 15%

B 69.6

5yr Avg ROE 20.5% 93/100
5yr Share-Count CAGR 2.5% 26/100

Growth Quality

Weight: 25%

A+ 94.6

5yr Revenue CAGR 18.3% 97/100
5yr EPS CAGR 60.7% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

A+ 96.7

5yr FCF Margin 39.8% 100/100
5yr FCF/NI Conversion 1.41x 93/100

Balance Sheet

Weight: 10%

A+ 96.7

Net Debt / EBITDA -1.26x 100/100
Interest Coverage (EBIT/Int) 12.75x 89/100
Altman Z-Score 7.14 100/100

Stability

Weight: 5%

C- 46.8

EPS Volatility (σ/μ) 0.81 8/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 1/5 80/100

3 of 5 gurus held; 3 trimmed; 2 full exits.

Holders: 3 -2
Avg Δ position: -55.0%
New buys: 0
Full exits: 2

Dalio sold -100%
Laffont sold -100%
Wood decreased -67%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.