Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless technology developer InterDigital
With that in mind, let's take a closer look at InterDigital's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||King of Prussia, Pa. (1972)|
|Market Cap||$2.58 billion|
|Trailing-12-Month Revenue||$375.69 million|
CEO William Merritt (since 2005)
CFO Scott McQuilkin (since 2007)
|Return on Equity (Average, Past 3 Years)||46.3%|
|Cash/Debt||$563.6 million / $540,000|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Earlier this month, MajorBob04 touched on the big trend working in InterDigital's favor: "Continues to grow and take advantage of global phone growth."
Over the past five years, InterDigital has even grown its bottom line at a particularly brisk annual pace of 31%. That's much faster than competitor Qualcomm (10%) and compares with annualized profit declines of 29% at Alcatel-Lucent and 13% at Nokia.
CAPS member rdwolf34 elaborated last month on the bull case:
InterDigital is a well established [Wireless IP] company. They have most all the Mobile phone manufactures phones paying them for their patents and they keep coming out with new patents/IP in emerging Wireless technologies (4G LTE, etc.).
They are in a high margin business....
The business is a bit different and so not many seem to be on the bandwagon now but I think this will change as the wireless explosion continues with Smartphones, Tablets and the tons of other wireless devices.
I think this company has huge upside potential over the next 5 years.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. InterDigital is a Motley Fool Stock Advisor selection. The Fool owns shares of Qualcomm. Try any of our Foolish newsletter services free for 30 days.
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