Interlink Electronics (LINK) AI Stock Analysis

• Market Cap: $57.07M
• Dividend Yield: N/A
• Average Volume (3M): 11.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -16.22%
• EPS Growth: -297.70%
• Country: US
• Employees: 102
• Sector: Technology
• Sector Strength: 46
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.24
• Shares Outstanding: 9,864,214
• 10 Day Avg. Volume: 3,785
• 30 Day Avg. Volume: 11,566
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.23
• Price to Cash Flow (P/CF): -235.00
• 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: $7.00
• Price Target Upside: 21.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Interlink Electronics faces significant challenges with declining revenue, profitability issues, and weak cash flow generation. The technical analysis suggests bearish momentum, and valuation metrics are not favorable. The strong equity position is a positive factor, but strategic improvements are necessary to enhance financial health and stock attractiveness.

Positive Factors

Demand Fundamentals

There is a positive sentiment towards near-term demand fundamentals in India’s C&W sector.

Export Potential

Constructive outlook on export potential for India’s C&W sector.

Negative Factors

P/E Ratios

Both Polycab and KEI are trading at high P/E ratios, suggesting a wait for a better entry point.

Revenue and Earnings

The company reported a revenue of $2.7M, down 13% year-over-year, and an adjusted EBITDA loss of ($0.3M), both wider than analyst estimates.

Valuations

Valuations have been reset downwards due to concerns on new capacity in India’s C&W sector.

Interlink Electronics Business Overview & Revenue Model

Company Description

Interlink Electronics, Inc. is a technology company specializing in the design and manufacture of human-machine interface (HMI) solutions. The company operates primarily in the electronics sector, providing advanced sensor technologies for diverse applications including automotive, consumer electronics, medical devices, and industrial controls. Its core products include force-sensing resistors, position sensors, and related software and firmware solutions that enhance the user interface experience.

How the Company Makes Money

Interlink Electronics generates revenue through the sale of its proprietary sensor technologies and HMI solutions to a broad range of industries. Key revenue streams include the direct sale of products to original equipment manufacturers (OEMs), licensing agreements for its technology, and customized engineering services for specific client needs. The company also benefits from collaborative partnerships with technology firms to integrate its sensors into broader system applications, thereby expanding its market reach and enhancing its revenue potential.

Interlink Electronics Financial Statement Overview

Summary

Interlink Electronics is facing significant challenges in profitability and cash flow generation. Despite a strong equity position and low leverage, the company's declining revenue, persistent losses, and negative operating cash flows are concerning. Strategic adjustments are needed to enhance operational efficiency and financial health.

Income Statement

Interlink Electronics has faced challenges with profitability, as evidenced by negative EBIT and net income margins for the most recent year. Revenue has declined by approximately 16.2% from the previous year, indicating potential demand issues or increased competition. While gross profit margin remains relatively stable at around 41.5%, the overall profitability metrics suggest struggles in converting revenue into profit.

Balance Sheet

The balance sheet of Interlink Electronics shows a strong equity position with a high equity ratio of approximately 80%. The company's debt-to-equity ratio remains low at about 0.11, indicating low leverage and financial risk. However, the declining stockholders' equity over the past year suggests a potential erosion in asset value which warrants attention.

Cash Flow

Cash flow performance is mixed, highlighted by negative operating and free cash flows. The free cash flow has further deteriorated, showing a decline from the previous period. The operating cash flow to net income ratio is negative, indicating challenges in generating cash from core operations. This scenario could stress liquidity if not addressed.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.23M	11.68M	13.94M	7.49M	7.48M	6.89M
	Gross Profit
4.36M	4.85M	6.56M	3.86M	4.06M	3.90M
	EBIT
-2.12M	-2.05M	-439.00K	-668.00K	-79.00K	-396.00K
	EBITDA
-1.07M	-2.05M	424.00K	-420.00K	202.00K	110.00K
	Net Income Common Stockholders
-2.02M	-1.98M	-383.00K	1.27M	-734.00K	113.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.95M	2.95M	4.30M	10.09M	10.78M	6.12M
	Total Assets
6.33M	13.12M	15.06M	14.98M	13.78M	10.02M
	Total Debt
0.00	1.13M	159.00K	177.00K	175.00K	545.00K
	Net Debt
-3.95M	-1.82M	-4.14M	-9.91M	-10.60M	-5.58M
	Total Liabilities
1.79M	1.23M	2.03M	1.14M	1.07M	1.18M
	Stockholders Equity
4.54M	10.49M	13.03M	13.85M	12.71M	8.84M
Cash Flow		Free Cash Flow
-601.00K	-544.00K	-239.00K	-957.00K	72.00K	-51.00K
	Operating Cash Flow
-415.00K	-367.00K	-116.00K	-915.00K	231.00K	39.00K
	Investing Cash Flow
-670.00K	-491.00K	-4.88M	735.00K	-159.00K	-90.00K
	Financing Cash Flow
-400.00K	-400.00K	-750.00K	-350.00K	4.52M	186.00K

Interlink Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LINK, the sentiment is Negative. The current price of 5.78 is below the 20-day moving average (MA) of 6.05, below the 50-day MA of 6.36, and above the 200-day MA of 5.37, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 39.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LINK.

Interlink Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELTK	70 Outperform	$55.53M	13.12	12.41%	2.66%	-0.36%	-40.16%
Sector *	59 Neutral	$9.97B	10.09	-6.54%	3.08%	7.41%	-11.60%
SOTK	56 Neutral	$60.48M	54.94	6.59%	―	8.40%	-18.22%
LPTH	51 Neutral	$77.91M	―	-30.42%	―	-1.01%	-72.93%
LINK	49 Neutral	$57.07M	―	-16.87%	―	-16.22%	-297.70%
OPTX	47 Neutral	$52.46M	―	-2.17%	―	―	―
WRAP	43 Neutral	$74.23M	―	-355.35%	―	-26.51%	78.84%