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Interlink Electronics, Inc. (LINK)
NASDAQ:LINK
US Market

Interlink Electronics (LINK) AI Stock Analysis

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Interlink Electronics

(NASDAQ:LINK)

53Neutral
Interlink Electronics' overall stock score reflects significant financial performance challenges, particularly in profitability and cash flow. While the company maintains a strong balance sheet, the negative valuation metrics and mixed technical analysis signals highlight the need for strategic improvements. The absence of earnings call data and corporate events does not provide additional insights or adjustments to the score.
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.
Nasdaq Listing
Nasdaq announced that PLTR and AXON would both be added to the Nasdaq 100.
Negative Factors
Earnings Expectations
Most stocks reporting earnings traded lower due to high expectations, incremental spending, and tepid outlooks.
Revenue Decline
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 (LINK) vs. S&P 500 (SPY)

Interlink Electronics Business Overview & Revenue Model

Company DescriptionInterlink 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 MoneyInterlink 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
45
Neutral
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
68
Positive
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
52
Neutral
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
12.23M11.68M13.94M7.49M7.48M6.89M
Gross Profit
4.36M4.85M6.56M3.86M4.06M3.90M
EBIT
-2.12M-2.05M-439.00K-668.00K-79.00K-396.00K
EBITDA
-1.07M-2.05M424.00K-420.00K202.00K110.00K
Net Income Common Stockholders
-2.02M-1.98M-383.00K1.27M-734.00K113.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.95M2.95M4.30M10.09M10.78M6.12M
Total Assets
6.33M13.12M15.06M14.98M13.78M10.02M
Total Debt
0.001.13M159.00K177.00K175.00K545.00K
Net Debt
-3.95M-1.82M-4.14M-9.91M-10.60M-5.58M
Total Liabilities
1.79M1.23M2.03M1.14M1.07M1.18M
Stockholders Equity
4.54M10.49M13.03M13.85M12.71M8.84M
Cash FlowFree Cash Flow
-601.00K-544.00K-239.00K-957.00K72.00K-51.00K
Operating Cash Flow
-415.00K-367.00K-116.00K-915.00K231.00K39.00K
Investing Cash Flow
-670.00K-491.00K-4.88M735.00K-159.00K-90.00K
Financing Cash Flow
-400.00K-400.00K-750.00K-350.00K4.52M186.00K

Interlink Electronics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.42
Price Trends
50DMA
7.17
Negative
100DMA
6.48
Negative
200DMA
5.25
Positive
Market Momentum
MACD
-0.07
Negative
RSI
48.85
Neutral
STOCH
45.26
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 6.42 is above the 20-day moving average (MA) of 6.24, below the 50-day MA of 7.17, and above the 200-day MA of 5.25, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 45.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LINK.

Interlink Electronics Risk Analysis

Interlink Electronics disclosed 31 risk factors in its most recent earnings report. Interlink Electronics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Interlink Electronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CTCTS
67
Neutral
$1.23B21.7210.99%0.39%-6.36%-0.89%
61
Neutral
$2.10B38.933.66%9.41%
61
Neutral
$2.60B-6.10%-1.21%-4.63%
57
Neutral
$20.94B10.43-13.41%2.52%4.53%-23.34%
53
Neutral
$62.93M-16.87%-16.22%-297.70%
46
Neutral
$687.10M-7.73%-36.86%-351.11%
43
Neutral
$427.68M-166.29%0.37%-20.49%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LINK
Interlink Electronics
6.42
-0.71
-9.96%
COHU
Cohu
15.41
-17.38
-53.00%
CTS
CTS
41.78
-2.87
-6.43%
MRCY
Mercury Systems
45.12
16.39
57.05%
TTMI
TTM Technologies
21.08
6.26
42.24%
SENS
Senseonics Holdings
0.65
0.15
30.00%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.