Immersion (IMMR) AI Stock Analysis

• Market Cap: $262.09M
• Dividend Yield: 2.22%
• Average Volume (3M): 422.12K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.93
• Revenue Growth: 3828.94%
• EPS Growth: 129.01%
• Country: US
• Employees: 14
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 0.63
• Shares Outstanding: 32,396,430
• 10 Day Avg. Volume: 549,019
• 30 Day Avg. Volume: 422,120
• PEG Ratio: -11.79
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.96
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.39
• Enterprise Value/Ebitda: 1.24
• 1Y Price Target: $12.25
• Price Target Upside: 51.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $8.50 ▲(5.07%Upside)

Immersion's stock demonstrates solid potential due to strong valuation metrics, including a low P/E ratio and attractive dividend yield. Financial performance is mixed, with strengths in profitability offset by concerns over rising leverage and cash flow management. Technical indicators suggest moderate bullish momentum, contributing positively to the overall score.

Positive Factors

Financial Position

IMMR has no debt, providing a strong financial position.

Strategic Investments

IMMR holds a significant ownership in Barnes & Noble Education, showing strategic investments in diverse companies.

Negative Factors

Market Value

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.

Revenue 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.

Immersion Business Overview & Revenue Model

Company Description

Immersion Corporation (IMMR) is a leading innovator in haptic technology, providing advanced solutions that enhance user experiences across various digital devices. Operating primarily in the technology and electronics sectors, Immersion develops and licenses its patented touch feedback technologies to enhance virtual reality, gaming, automotive, mobile, and consumer electronics products, allowing users to experience tactile feedback through their devices.

How the Company Makes Money

Immersion 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 generation and profitability but faces challenges with its high debt levels and negative cash flow. While profitability is commendable, improving cash flow conversion and managing leverage are critical for long-term stability.

Income Statement

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

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

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.

Breakdown	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	33.92M	38.46M	35.09M	30.46M
Gross Profit	358.97M	33.64M	38.46M	35.00M	30.29M
EBITDA	177.17M	17.99M	24.42M	17.77M	2.22M
Net Income	90.23M	33.98M	30.66M	12.48M	5.40M
Balance Sheet
Total Assets	1.37B	215.73M	190.11M	175.52M	96.13M
Cash, Cash Equivalents and Short-Term Investments	153.91M	160.36M	149.74M	137.92M	59.52M
Total Debt	322.14M	39.00K	486.00K	1.10M	1.38M
Total Liabilities	804.25M	32.63M	32.41M	34.23M	32.15M
Stockholders Equity	319.17M	183.10M	157.70M	141.29M	63.98M
Cash Flow
Free Cash Flow	-85.91M	20.60M	40.12M	17.11M	-25.00K
Operating Cash Flow	-77.78M	20.60M	40.15M	17.45M	22.00K
Investing Cash Flow	11.28M	3.40M	-29.41M	-87.68M	2.95M
Financing Cash Flow	101.23M	-16.75M	-13.41M	62.20M	-29.93M

Immersion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMMR, the sentiment is Positive. The current price of 8.09 is above the 20-day moving average (MA) of 7.80, above the 50-day MA of 7.57, and above the 200-day MA of 8.03, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 62.86 is Neutral, neither overbought nor oversold. The STOCH value of 87.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMMR.

Immersion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKTW	67 Neutral	$327.44M	1.82	-10.56%	4.00%	-11.07%	953.01%
IMMR	65 Neutral	$262.09M	3.10	35.11%	2.22%	3828.94%	129.01%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
SMRT	62 Neutral	$208.88M	―	-22.66%	―	-25.43%	-135.09%
EB	61 Neutral	$259.86M	―	-9.90%	―	-6.52%	-2.19%
ONTF	58 Neutral	$233.61M	―	-24.47%	―	-8.39%	7.79%
OCFT	47 Neutral	$281.70M	50.30	-24.43%	―	-45.80%	-13.09%