InterDigitalFRA:IDI -3.45%71 FCF Margin % is 0.49% as of Mar. 2026, which is 99% below its 10-year median of 34.74. GuruFocus rates FRA:IDI with a GF Score™ of 71/100 and a GF Value™ of €131.66 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,814 Software companies, InterDigital ranks better than 98.47% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. InterDigital's Free Cash Flow for the
three
months ended in Mar. 2026 was €0.9 Mil. InterDigital's Revenue for the
three
months ended in Mar. 2026 was €177.7 Mil. Therefore, InterDigital's FCF Margin % for the quarter that ended in Mar. 2026 was 0.49%.
The historical rank and industry rank for InterDigital's FCF Margin % or its related term are showing as below:
FRA:IDI'
s FCF Margin % Range Over the Past 10 Years
Min: 16.13 Med: 34.74 Max: 62.47
Current: 62.47
During the past 13 years, the highest FCF Margin % of InterDigital was 62.47%. The lowest was 16.13%. And the median was 34.74%.
FRA:IDI's FCF Margin % is ranked better than 98.47% of 2814
companies
in the Software industry
Industry Median: 2.41
vs FRA:IDI: 62.47
InterDigital FCF Margin % Related Terms
InterDigital FCF Margin % Historical Data
* Premium members only.
The historical data trend for InterDigital's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:IDI vs PAYC, ESTC, PCTY: FCF Margin % Comparison
For the Software - Application subindustry, InterDigital's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
InterDigital FCF Margin % vs Software Industry
For the Software industry and Technology sector, InterDigital's FCF Margin % distribution charts can be found below:
* The bar in red indicates where InterDigital's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
InterDigital (FRA:IDI) has a FCF Margin % of 0.49% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on InterDigital and its competitors. This is 99% below median its historical median of 34.74. Over the past decade, InterDigital's FCF Margin % has ranged from 16.13 to 62.47. According to the industry distribution chart, InterDigital ranks #43 out of 2814 companies in the Software industry, placing it in the top 1.5%.
Is InterDigital's FCF Margin % too high?
InterDigital's current FCF Margin % of 0.49% is 99% below median its 10-year median of 34.74. Over the past 10 years, this metric has ranged from a low of 16.13 to a high of 62.47. The Software industry median FCF Margin % is 2.41. InterDigital's value of 0.49% is 79.7% below this industry median. Based on the distribution chart, InterDigital ranks #43 out of 2814 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, InterDigital has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does InterDigital's FCF Margin % compare to PAYC and ESTC?
According to the Software industry distribution chart, InterDigital ranks #43 out of 2814 companies for FCF Margin %. This places InterDigital in the top 2% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.41. InterDigital's value of 0.49% is 79.7% below this benchmark. Historically, InterDigital's own FCF Margin % has ranged from 16.13 to 62.47 over the past decade. While the company's 10-year median is 34.74 vs. the industry median of 2.41, InterDigital has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.41, based on 2,814 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InterDigital's current FCF Margin % of 0.49% is 79.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on InterDigital and its competitors. For the Software industry, the median FCF Margin % is 2.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterDigital's current FCF Margin % is 0.49%, which is 99% below median its own 10-year median of 34.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is InterDigital stock overvalued right now?
Based on GuruFocus' analysis, InterDigital (FRA:IDI) is currently considered Significantly Overvalued. The stock's GF Value™ is €131.66, compared to a current price of €243.20 — trading 84.7% above its estimated fair value. The current FCF Margin % is 0.49%, which is 99% below median its 10-year median of 34.74 and 79.7% below the Software industry median of 2.41. InterDigital's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For InterDigital (FRA:IDI), the current FCF Margin % is 0.49% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is InterDigital (FRA:IDI) Overvalued in 2026?
Based on GuruFocus' analysis, InterDigital stock appears to be overvalued.
The current stock price of €243.20 is trading 84.7% above its estimated GF Value™ of €131.66.
GuruFocus considers InterDigital to be Significantly Overvalued.
Key valuation signals for FRA:IDI:
FCF Margin %: 0.49% (99% below median its 10-year median of 34.74)
GF Value™: €131.66 vs. price of €243.20 (84.7% above fair value)
Industry Position: 79.7% below the Software median (#43 of 2814)
No single metric tells the full story. See the FRA:IDI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
InterDigital Inc is a research and development company focused on wireless, Video, Artificial Intelligence, and related Technologies. It designs and develops technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. The majority of revenue is generated from fixed-fee patent license agreements, with a smaller portion coming from variable royalty agreements. Geographically, it operates in the United States, China, South Korea, Japan, Taiwan, and Europe, with the majority is from China.
71GF Score
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