Immersion (IMMR) AI Stock Analysis

• Market Cap: $221.59M
• Dividend Yield: 5.55%
• Average Volume (3M): 359.92K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 1.02
• Revenue Growth: 3828.94%
• EPS Growth: 129.01%
• Country: US
• Employees: 14
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 32,396,430
• 10 Day Avg. Volume: 276,781
• 30 Day Avg. Volume: 359,915
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.10
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 3.88
• 1Y Price Target: $13.50
• Price Target Upside: 98.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $7.50 ▲(10.13% Upside)

The overall stock score of 60 reflects a mix of strengths and risks. The low P/E ratio and high dividend yield are significant positives, suggesting potential undervaluation. However, financial performance is hindered by leverage and cash flow challenges, and technical indicators point to bearish momentum. The regulatory risk from the Nasdaq compliance issue adds further uncertainty.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Immersion's haptic technology, supporting long-term business expansion and market penetration.

Profitability

High profit margins reflect effective cost control and pricing power, suggesting sustainable profitability and competitive advantage in the market.

Industry Partnerships

Strategic partnerships enhance Immersion's market position, driving technology adoption and providing stable revenue streams through licensing.

Negative Factors

Regulatory Risk

Regulatory compliance issues can undermine investor confidence and lead to potential trading restrictions, affecting long-term business stability.

Leverage Challenges

Increased leverage may strain financial flexibility and elevate risk, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Management

Negative cash flow highlights operational inefficiencies and could limit the company's capacity to fund new projects or return capital to shareholders.

Immersion Business Overview & Revenue Model

Company Description

Immersion 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 Money

Immersion primarily generates revenue through licensing agreements with device manufacturers and developers who incorporate its haptic technology into their products. The company offers a range of licensing models, including upfront fees and ongoing royalties based on product sales. Key revenue streams include licensing for mobile devices, gaming consoles, and automotive applications. Additionally, Immersion may also earn revenue through custom engineering services and partnerships with major tech companies that seek to enhance their products with haptic feedback technology. Significant partnerships with industry leaders in the gaming and mobile sectors contribute to its earnings, as these collaborations often lead to widespread adoption of its technology in popular consumer products.

Immersion Financial Statement Overview

Summary

Immersion demonstrates strong revenue generation and profitability, but faces challenges with high leverage and negative cash flow. The company's ability to maintain profitability amid revenue fluctuations is commendable, but rising debt levels and cash flow inefficiencies pose risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	1.23B	33.92M	38.46M	35.09M	30.46M
Gross Profit	358.97M	358.97M	33.64M	38.46M	35.00M	30.29M
EBITDA	177.17M	177.17M	17.99M	24.42M	17.77M	2.22M
Net Income	90.23M	90.23M	33.98M	30.66M	12.48M	5.40M
Balance Sheet
Total Assets	1.37B	1.37B	215.73M	190.11M	175.52M	96.13M
Cash, Cash Equivalents and Short-Term Investments	153.91M	153.91M	160.36M	149.74M	137.92M	59.52M
Total Debt	322.14M	322.14M	39.00K	486.00K	1.10M	1.38M
Total Liabilities	804.25M	804.25M	32.63M	32.41M	34.23M	32.15M
Stockholders Equity	319.17M	319.17M	183.10M	157.70M	141.29M	63.98M
Cash Flow
Free Cash Flow	-85.91M	-85.91M	20.60M	40.12M	17.11M	-25.00K
Operating Cash Flow	-77.78M	-77.78M	20.60M	40.15M	17.45M	22.00K
Investing Cash Flow	11.28M	11.28M	3.40M	-29.41M	-87.68M	2.95M
Financing Cash Flow	101.23M	101.23M	-16.75M	-13.41M	62.20M	-29.93M

Immersion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 6.81 is below the 20-day moving average (MA) of 7.02, below the 50-day MA of 7.26, and below the 200-day MA of 7.73, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 40.18 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 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
EB	65 Neutral	$260.55M	―	-11.81%	―	-11.54%	-54.32%
IMMR	60 Neutral	$221.59M	2.62	35.11%	5.55%	3828.94%	129.01%
SMRT	58 Neutral	$268.94M	―	-25.48%	―	-28.45%	-224.48%
ONTF	56 Neutral	$229.72M	―	-22.60%	―	-6.88%	15.83%
Sector *	54 Neutral	$301.25M	3.24	-13.34%	2.78%	5.71%	-76.50%
MKTW	53 Neutral	$298.13M	1.64	-10.56%	9.70%	-17.17%	497.89%
OCFT	42 Neutral	$284.03M	50.30	-24.21%	―	-48.61%	-2291.48%

Immersion Corporate Events

Immersion Faces Nasdaq Filing Compliance Deadline

On August 20, 2025, Immersion Corporation received a notification from Nasdaq regarding its failure to timely file its Annual Report for the fiscal year ended April 30, 2025, due to an internal investigation by its subsidiary, Barnes & Noble Education. The company has 60 days to submit a compliance plan to Nasdaq, and its stock will continue to trade during this period. Immersion is working to complete the necessary filings but is dependent on the completion of the subsidiary’s investigation.

Immersion Announces Quarterly Cash Dividend Declaration

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.