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Immersion (IMMR)
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Immersion (IMMR) AI Stock Analysis

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IMMR

Immersion

(NASDAQ:IMMR)

Rating:58Neutral
Price Target:
$7.50
▲(7.60%Upside)
Immersion's stock score reflects a mixed picture: strong valuation due to low P/E and high dividend yield is offset by financial performance concerns related to leverage and cash flow. The technical indicators suggest bearish sentiment, impacting the overall score. The absence of earnings call data and corporate events means these areas did not influence the score.
Positive Factors
Financial Position
IMMR has no debt, providing a strong financial position.
Industry Adoption
The automobile industry continues to adopt haptics for within the car, supporting IMMR's operating business.
Strategic Investments
Media reports suggest that Magnachip Semiconductor, in which IMMR has a stake, is looking to sell itself again, opening opportunities for value realization.
Negative Factors
Earnings Performance
IMMR reported revenue of $8.4 million compared to a forecast of $9.5 million due to a tough business environment in mobile phones, automotive, and video games.
Market Valuation
IMMR’s stock is likely to remain priced under its book value until the headlines about the automotive industry are optimistic for future car sales.
Regulatory and Filing Issues
Immersion (IMMR) is at risk of having to delay its 10K filing after Barnes & Noble Education (BNED) disclosed accounting irregularities related to accounts receivable.

Immersion (IMMR) vs. SPDR S&P 500 ETF (SPY)

Immersion Business Overview & Revenue Model

Company DescriptionImmersion Corporation, together with its subsidiaries, invents, scales, and licenses haptic technologies that allow people to use their sense of touch to engage with and experience various digital products in North America, Europe, and Asia. The company provides technology, patent, and combined licenses. It also provides software development kits (SDKs) comprising tools, integration software, and effect libraries that allow for the design, encoding, and playback of tactile effects in content. In addition, the company offers reference designs and reference technology, engineering and integration services, and software and firmware services. The company offers its products to mobile communications, wearables, and consumer electronics; gaming and virtual reality (VR); automotive; and other markets. Immersion Corporation was incorporated in 1993 and is headquartered in Aventura, Florida.
How the Company Makes MoneyImmersion Corporation generates revenue primarily through licensing agreements and royalties from its extensive portfolio of haptic technology patents. The company collaborates with manufacturers of consumer electronics, automotive systems, and gaming devices, integrating its haptic solutions into their products. By providing these technologies, Immersion earns royalties based on the sales of devices that incorporate its patented innovations. Additionally, the company engages in strategic partnerships and collaborations, further expanding its market reach and enhancing its revenue streams.

Immersion Financial Statement Overview

Summary
Immersion shows strong revenue and profitability, but high debt levels and cash flow challenges present risks. Revenue volatility and increased leverage are areas of concern.
Income Statement
65
Positive
Immersion has demonstrated a strong revenue base with a significant increase in total revenue from its annual report to TTM (Trailing-Twelve-Months) period. The company achieved a robust gross profit margin and net profit margin, indicating efficient cost management and profitability. However, the revenue growth rate shows volatility, with a decrease in the most recent annual period before a substantial increase in the TTM period. The EBIT and EBITDA margins reflect consistent profitability, although there have been fluctuations in margins over the years.
Balance Sheet
55
Neutral
The balance sheet of Immersion indicates a moderate risk with a high debt-to-equity ratio due to a significant increase in total debt in the TTM period. The equity ratio has declined, reflecting a decrease in relative equity compared to total assets. Return on equity remains healthy, showing the company’s ability to generate profits from shareholder equity. However, the increased leverage in the recent period poses potential financial risk if not managed carefully.
Cash Flow
50
Neutral
Immersion’s cash flow statement reveals challenges in maintaining positive free cash flow, as the company experienced negative free cash flow in the TTM period. The operating cash flow to net income ratio indicates inefficiencies in converting net income to cash flow. The historical trend shows variability in cash flow metrics, suggesting fluctuations in cash generation and operational efficiency.
BreakdownMar 2025Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.23B33.92M38.46M35.09M30.46M
Gross Profit358.97M33.64M38.46M35.00M30.29M
EBITDA177.17M17.99M24.42M17.77M2.22M
Net Income90.23M33.98M30.66M12.48M5.40M
Balance Sheet
Total Assets1.37B215.73M190.11M175.52M96.13M
Cash, Cash Equivalents and Short-Term Investments153.91M160.36M149.74M137.92M59.52M
Total Debt322.14M39.00K486.00K1.10M1.38M
Total Liabilities804.25M32.63M32.41M34.23M32.15M
Stockholders Equity319.17M183.10M157.70M141.29M63.98M
Cash Flow
Free Cash Flow-85.91M20.60M40.12M17.11M-25.00K
Operating Cash Flow-77.78M20.60M40.15M17.45M22.00K
Investing Cash Flow11.28M3.40M-29.41M-87.68M2.95M
Financing Cash Flow101.23M-16.75M-13.41M62.20M-29.93M

Immersion Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.97
Price Trends
50DMA
7.60
Negative
100DMA
7.46
Negative
200DMA
7.90
Negative
Market Momentum
MACD
-0.15
Positive
RSI
32.87
Neutral
STOCH
14.00
Positive
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 6.97 is below the 20-day moving average (MA) of 7.55, below the 50-day MA of 7.60, and below the 200-day MA of 7.90, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 32.87 is Neutral, neither overbought nor oversold. The STOCH value of 14.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMMR.

Immersion Risk Analysis

Immersion disclosed 44 risk factors in its most recent earnings report. Immersion reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Immersion Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥230.15B14.837.55%2.61%9.28%5.74%
67
Neutral
$340.06M1.89-10.56%7.62%-11.07%953.01%
61
Neutral
$226.30M-9.90%-6.52%-2.19%
58
Neutral
$225.80M2.6735.11%5.37%3828.94%129.01%
57
Neutral
$201.35M-22.66%-25.43%-135.09%
50
Neutral
$215.77M-24.47%-8.39%7.79%
47
Neutral
$290.64M50.30-24.43%-45.80%-13.09%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IMMR
Immersion
6.97
-4.55
-39.50%
EB
Eventbrite
2.44
-2.11
-46.37%
OCFT
OneConnect Financial Technology
7.45
5.96
400.00%
MKTW
MarketWise
18.40
-1.36
-6.88%
ONTF
ON24
4.96
-1.23
-19.87%
SMRT
SmartRent
1.01
-0.76
-42.94%

Immersion Corporate Events

Dividends
Immersion Announces Quarterly Cash Dividend Declaration
Neutral
Jul 8, 2025

On July 8, 2025, Immersion Corporation announced a quarterly cash dividend of $0.045 per share on its common stock, payable on August 8, 2025, to stockholders of record on July 23, 2025. The Board of Directors will review future dividends, which may be adjusted or withdrawn, as part of the company’s capital allocation strategy.

The most recent analyst rating on (IMMR) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Immersion stock, see the IMMR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025