Interlink Electronics (LINK) AI Stock Analysis

• Market Cap: $106.83M
• Dividend Yield: N/A
• Average Volume (3M): 90.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -7.12%
• EPS Growth: -11.00%
• Country: US
• Employees: 102
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.00
• Shares Outstanding: 9,864,214
• 10 Day Avg. Volume: 118,431
• 30 Day Avg. Volume: 90,096
• 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: 0.68
• Enterprise Value/Revenue: 6.23
• Enterprise Value/Gross Profit: 15.32
• Enterprise Value/Ebitda: -66.49
• 1Y Price Target: $9.75
• Price Target Upside: -5.71% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 51 Neutral
• Price Target: $6.50 ▼(-37.14% Downside)

Interlink Electronics' overall stock score is primarily impacted by its financial performance, which highlights significant profitability and cash flow challenges. Technical analysis provides a moderate positive outlook with mild bullish momentum, but valuation concerns due to negative earnings and lack of dividends weigh heavily on the score.

Positive Factors

Strong Market Position

Interlink's leadership in human-machine interface solutions across diverse sectors like medical and automotive ensures a strong market position and potential for sustained demand.

Low Leverage

A low debt-to-equity ratio indicates conservative leverage, providing financial flexibility and reducing risk in economic downturns, supporting long-term stability.

Innovative Product Offering

Interlink's focus on innovative sensor technologies enhances its competitive edge, driving product adoption and supporting long-term revenue growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues, as indicated by negative margins, can impact the company's ability to reinvest in growth and maintain competitive positioning.

Negative Cash Flow

Negative cash flow highlights liquidity concerns, limiting the company's ability to fund operations and invest in growth, potentially affecting long-term viability.

Declining Revenue Growth

A decline in revenue growth suggests challenges in market expansion and product demand, which can hinder long-term financial performance and strategic initiatives.

Interlink Electronics Business Overview & Revenue Model

Company Description

Interlink Electronics (LINK) is a leading provider of advanced human-machine interface solutions, specializing in the design and manufacturing of force-sensing resistors, touch sensors, and other innovative electronic components. The company serves various sectors, including medical devices, industrial controls, automotive, and consumer electronics, focusing on enhancing user interaction and experience through its cutting-edge technologies.

How the Company Makes Money

Interlink Electronics generates revenue primarily through the sale of its proprietary sensor technologies and solutions. The company offers a range of products that include force-sensing resistors and touch-sensitive interfaces, which are sold directly to manufacturers across different industries. Key revenue streams include product sales, which are bolstered by custom engineering services that cater to specific client needs. Additionally, partnerships with major electronics manufacturers and participation in industry trade shows help expand their market reach and drive sales growth. The company's focus on innovation and quality ensures a competitive edge, allowing it to maintain a healthy profit margin.

Interlink Electronics Financial Statement Overview

Summary

Interlink Electronics faces significant profitability and cash flow challenges despite maintaining a stable balance sheet. The company shows some revenue growth, but negative margins and cash flow inefficiencies highlight operational difficulties. While the low leverage is a positive aspect, the overall financial health is constrained by ongoing losses and liquidity issues.

Income Statement

Interlink Electronics shows a mixed performance in its income statement. The company has experienced a slight revenue growth of 4.6% in the TTM period, but it is accompanied by negative net profit and EBIT margins, indicating ongoing profitability challenges. The gross profit margin has decreased over time, reflecting potential cost management issues. Overall, the income statement suggests moderate growth but significant profitability concerns.

Balance Sheet

The balance sheet of Interlink Electronics is relatively stable with a low debt-to-equity ratio of 0.11, indicating conservative leverage. However, the return on equity is negative, reflecting the company's struggles to generate returns for shareholders. The equity ratio remains healthy, suggesting a solid asset base. While the company maintains a strong capital structure, the negative ROE highlights profitability issues.

Cash Flow

Cash flow analysis reveals challenges for Interlink Electronics. The company has negative operating cash flow and free cash flow in the TTM period, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. Despite a positive free cash flow to net income ratio, the overall cash flow position is weak, suggesting liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.73M	11.68M	13.94M	7.49M	7.48M	6.89M
Gross Profit	4.78M	4.85M	6.56M	3.86M	4.06M	3.90M
EBITDA	-1.10M	-1.16M	424.00K	-420.00K	202.00K	110.00K
Net Income	-1.64M	-1.98M	-383.00K	1.27M	-734.00K	113.00K
Balance Sheet
Total Assets	12.51M	13.12M	15.06M	14.98M	13.78M	10.02M
Cash, Cash Equivalents and Short-Term Investments	2.33M	2.95M	4.30M	10.09M	10.78M	6.12M
Total Debt	994.00K	1.13M	159.00K	177.00K	175.00K	545.00K
Total Liabilities	2.47M	2.62M	2.03M	1.14M	1.07M	1.18M
Stockholders Equity	10.04M	10.49M	13.03M	13.85M	12.71M	8.84M
Cash Flow
Free Cash Flow	-891.00K	-544.00K	-239.00K	-957.00K	72.00K	-51.00K
Operating Cash Flow	-700.00K	-367.00K	-116.00K	-915.00K	231.00K	39.00K
Investing Cash Flow	-505.00K	-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: Positive
• Last Price: 10.34
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 10.34 is above the 20-day moving average (MA) of 9.15, above the 50-day MA of 7.88, and above the 200-day MA of 6.78, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 51.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LINK.

Interlink Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELTK	71 Outperform	70.50M	22.51	10.25%	1.81%	6.75%	-52.37%
WRAP	57 Neutral	131.63M	-12.51	-2350.00%	―	-55.50%	59.81%
SOTK	56 Neutral	65.58M	46.03	0.00%	―	-2.47%	-16.94%
LINK	51 Neutral	$106.83M	―	-15.12%	―	-7.12%	-11.00%
LPTH	47 Neutral	310.59M	-28.50	0.00%	―	2.59%	-48.02%
OPTX	47 Neutral	62.37M	41.06	0.00%	―	0.00%	0.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Interlink Electronics Corporate Events

Interlink Electronics Holds Successful 2025 Annual Meeting

Interlink Electronics, Inc. held its 2025 annual meeting of stockholders on June 3, 2025, where 95.69% of the shares entitled to vote were represented. During the meeting, Steven N. Bronson, Joy C. Hou, David J. Wolenski, and Maria N. Fregosi were elected as directors, the compensation of executive officers was approved, and LMHS, P.C. was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.