Interlink Electronics (LINK) AI Stock Analysis

• Market Cap: $59.51M
• Dividend Yield: N/A
• Average Volume (3M): 6.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -16.22%
• EPS Growth: -297.70%
• Country: US
• Employees: 102
• Sector: Technology
• Sector Strength: 65
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.24
• Shares Outstanding: 9,864,214
• 10 Day Avg. Volume: 3,814
• 30 Day Avg. Volume: 6,833
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 12.32
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.00
• Price Target Upside: 16.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Interlink Electronics faces significant challenges with declining revenue and negative profitability metrics, impacting its financial performance score heavily. The technical analysis indicates a neutral to slightly bearish outlook, while valuation metrics are weak due to a negative P/E ratio and no dividend yield. These factors result in a below-average overall stock score.

Positive Factors

Cloud services performance

Strong results out of the hyperscalers should be supportive of solid results for other cloud data names.

Export potential

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

Near-term demand fundamentals

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

Negative Factors

Earnings performance

Most stocks reporting earnings traded lower due to high expectations, incremental spending, and tepid outlooks.

Macroeconomic volatility

Macro factors including tariffs and concerns about a potential trade war contribute to a dynamic and volatile background.

Valuation concerns

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., together with its subsidiaries, designs, develops, manufactures, and sells force-sensing technologies that incorporate proprietary materials technology, and firmware and software into sensor-based products and custom sensor system solutions. Its products comprise sensor components, subassemblies, modules, and products that support cursor control and novel three-dimensional user inputs. The company also provides multi-finger capable rugged trackpads; Force-Sensing Resistor sensors; force sensing linear potentiometers for menu navigation and control; and integrated mouse modules and pointing solutions to various electronic devices. In addition, it offers human machine interface technology platforms for various applications, including vehicle entry, vehicle multi-media control interface, rugged touch controls, presence detection, collision detection, speed and torque controls, biological monitoring, and others; and embedded firmware development and integration support services. The company serves multi-national and start-up companies, design houses, original design manufacturers, original equipment manufacturers, and universities in various markets, such as consumer electronics, automotive, industrial, and medical through direct sales employees, as well as outside sales representatives and distributors. It operates in the United States, Asia, the Middle East, Europe, and internationally. Interlink Electronics, Inc. was incorporated in 1985 and is headquartered in Irvine, California.

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

Interlink Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.03
• 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 6.03 is above the 20-day moving average (MA) of 6.01, below the 50-day MA of 6.24, and above the 200-day MA of 5.44, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 44.61 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	$55.39M	13.09	12.41%	2.67%	-0.36%	-40.16%
Sector *	59 Neutral	$10.75B	10.37	-6.64%	3.00%	7.30%	-12.02%
SOTK	56 Neutral	$63.79M	57.94	6.59%	―	8.40%	-18.22%
LINK	52 Neutral	$59.51M	―	-16.87%	―	-16.22%	-297.70%
LPTH	51 Neutral	$100.37M	―	-30.42%	―	-1.01%	-72.93%
OPTX	47 Neutral	$53.93M	―	-2.17%	―	―	―
WRAP	43 Neutral	$77.35M	―	-355.35%	―	-26.51%	78.84%