Immersion (IMMR) AI Stock Analysis

• Market Cap: $250.30M
• Dividend Yield: 2.13%
• Average Volume (3M): 447.18K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.86
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 14
• Sector: Technology
• Sector Strength: 45
• Industry: Software
• EPS (TTM): 1.03
• Shares Outstanding: 32,275,703
• 10 Day Avg. Volume: 553,058
• 30 Day Avg. Volume: 447,180
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.54
• Price to Cash Flow (P/CF): -0.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.75
• Price Target Upside: 84.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Immersion's overall stock score is moderate, driven by strong financial performance in terms of revenue and profitability, but offset by high leverage and cash flow challenges. The technical analysis indicates a bearish trend, while the valuation suggests potential undervaluation, offering a mixed investment outlook.

Positive Factors

Financial Position

IMMR has no debt, providing a strong financial position.

Revenue Performance

Immersion reported fiscal second quarter revenue of $14.1 million compared to analyst estimate of $10.1 million.

Negative Factors

Earnings Potential

Analyst's price target of $13.50 reflects minimal value for the earnings the haptics business can generate.

Immersion Business Overview & Revenue Model

Company Description

Immersion Corp. engages in the creation, design, development and licensing of patented haptic innovations and software. The company offers touch sense platform and design services. It focuses on the following target application areas: mobile devices, wearable, consumer, mobile entertainment and other content, console gaming, automotive, medical, and commercial. The company was founded in 1993 and is headquartered in San Jose, CA.

How the Company Makes Money

Immersion Corporation generates revenue primarily through licensing its patented haptic technology to various manufacturers and service providers across the globe. The company's revenue model is centered on licensing agreements, where it grants other companies the rights to use its technology in their products in exchange for royalties or licensing fees. These agreements often involve upfront payments and ongoing royalties based on the sales or usage of the licensed products. Additionally, Immersion provides design and consulting services to help its partners effectively integrate haptic solutions into their products, which also contributes to its revenue streams. Key partnerships with major manufacturers in industries like mobile devices, automotive, and gaming have been significant contributors to Immersion's earnings.

Immersion Financial Statement Overview

Summary

Immersion exhibits a strong financial position with significant revenue and profit growth, supported by effective cost management. The balance sheet reflects robust equity utilization, though the company faces liquidity challenges with negative cash flows in the latest period. Continued focus on cash management will be key to sustaining growth.

Income Statement

Immersion shows a strong improvement with a notable increase in revenue and profitability metrics. The TTM Gross Profit Margin is robust at 34.22%, highlighting effective cost management. The Net Profit Margin of 11.79% indicates healthy profit levels. Revenue growth is significant, reflecting the company's upward trajectory.

Balance Sheet

The balance sheet demonstrates solid equity with a Debt-to-Equity Ratio of 0.65 in TTM, indicating manageable leverage. Return on Equity is strong at 29.18%, showing effective use of equity. However, a relatively low Equity Ratio of 23.55% suggests moderate financial leverage.

Cash Flow

Cash flow analysis reveals challenges with negative operating cash flow in TTM, raising liquidity concerns. Free cash flow is also negative, impacting financial flexibility. However, past periods show positive cash flow trends, indicating potential for improvement.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
769.90M	33.92M	38.46M	35.09M	30.46M	35.95M
	Gross Profit
263.47M	33.64M	38.46M	35.00M	30.29M	35.78M
	EBIT
111.46M	17.93M	24.42M	17.77M	289.00K	-21.45M
	EBITDA
131.25M	17.99M	24.42M	17.77M	2.22M	-19.25M
	Net Income Common Stockholders
90.75M	33.98M	30.66M	12.48M	5.40M	-20.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
159.35M	160.36M	149.74M	137.92M	59.52M	89.50M
	Total Assets
1.32B	215.73M	190.11M	175.52M	96.13M	124.85M
	Total Debt
203.02M	39.00K	486.00K	1.10M	1.38M	1.15M
	Net Debt
203.02M	-56.03M	-48.33M	-50.39M	-58.14M	-85.33M
	Total Liabilities
837.63M	32.63M	32.41M	34.23M	32.15M	41.09M
	Stockholders Equity
310.88M	183.10M	157.70M	141.29M	63.98M	83.76M
Cash Flow		Free Cash Flow
-31.84M	20.60M	40.12M	17.11M	-25.00K	-34.25M
	Operating Cash Flow
-26.26M	20.60M	40.15M	17.45M	22.00K	-34.10M
	Investing Cash Flow
25.32M	3.40M	-29.41M	-87.68M	2.95M	10.92M
	Financing Cash Flow
75.67M	-16.75M	-13.41M	62.20M	-29.93M	-1.33M

Immersion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMMR, the sentiment is Negative. The current price of 7.44 is below the 20-day moving average (MA) of 8.12, below the 50-day MA of 8.33, and below the 200-day MA of 9.03, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 41.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMMR.

Immersion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCOM	76 Outperform	$169.33B	16.56	41.96%	2.19%	12.13%	36.17%
HIMX	75 Outperform	$1.48B	18.64	9.11%	3.30%	-4.43%	56.02%
AVGO	74 Outperform	$893.79B	88.87	14.85%	1.12%	40.30%	-22.79%
OLED	73 Outperform	$7.10B	32.19	14.46%	1.07%	12.36%	9.70%
Sector *	58 Neutral	$21.35B	9.96	-19.72%	2.38%	5.03%	-22.83%
IMMR	56 Neutral	$250.30M	7.43	29.19%	2.13%	―	―
SYNA	54 Neutral	$2.47B	14.93	13.01%	―	-1.85%	―