Is InterDigital, Inc. (IDCC) Halal?

NASDAQ Technology United States $7.8B
✓ HALAL
Confidence: 95/100
InterDigital, Inc. (IDCC) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 5.3% against the AAOIFI threshold of 30%, InterDigital, Inc. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Application), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 5.3%
/ 30%
13.5%
/ 30%
1.2%
/ 30%
4.8%
/ 5%
✓ HALAL
DJIM 5.3%
/ 33%
13.5%
/ 33%
1.2%
/ 33%
4.8%
/ 5%
✓ HALAL
MSCI 23.7%
/ 33%
60.2%
/ 33%
5.3%
/ 33%
4.8%
/ 5%
✗ NOT HALAL
S&P 5.3%
/ 33%
13.5%
/ 33%
1.2%
/ 33%
4.8%
/ 5%
✓ HALAL
FTSE 23.7%
/ 33%
60.2%
/ 33%
5.3%
/ 50%
4.8%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
25.5
Forward: 26.4
EPS
$11.81
Dividend Yield
93.0%
Payout: 19.9%
P/B Ratio
7.0
EV/EBITDA
13.0
EV: $7.0B
Revenue
$834M
Growth: -37.4%
Beta
1.6
High volatility
Current Ratio
1.8

Profitability

Gross Margin 88.9%
Operating Margin 30.5%
Net Margin 48.8%
Return on Equity (ROE) 41.5%
Return on Assets (ROA) 14.8%

Cash Flow & Balance Sheet

Operating Cash Flow$544M
Free Cash Flow$474M
Total Debt$488M
Debt-to-Equity44.7
Current Ratio1.8
Total Assets$2.1B

Price & Trading

Last Close$299.04
50-Day MA$346.00
200-Day MA$315.44
Avg Volume372K
Beta1.6
52-Week Range
$180.60
$412.60

About InterDigital, Inc. (IDCC)

CEO
Mr. Lawrence Chen J.D.
Employees
460
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NASDAQ
Market Cap
$7.8B
Currency
USD

InterDigital, Inc. operates as a global research and development company focuses on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing various products and services, including makers of wireless communications devices, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G advanced and 6G, as well as technologies for mobile phones, automobiles and autonomous vehicles, wearables, smart factories and smart homes, robots, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies, and artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, base stations, televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles, as well as patented technologies are used in various services, such as video streaming, user generated content sharing, video conferencing, video gaming, and other cloud-based services. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.

Purification Calculator

As a halal stock with 4.80% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is InterDigital, Inc. (IDCC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), InterDigital, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is InterDigital, Inc.'s debt ratio?

InterDigital, Inc.'s debt ratio is 5.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 23.7%.

Does InterDigital, Inc. require dividend purification?

Yes, InterDigital, Inc. has an impermissible income ratio of 4.80%, which means 4.80% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are InterDigital, Inc.'s key financial metrics?

InterDigital, Inc. has a market capitalization of $7.8B, trailing P/E ratio of 25.5, and revenue of $834M. The company maintains a gross margin of 88.9% and a net margin of 48.8%. Return on equity stands at 41.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.