Interlink Electronics (LINK) AI Stock Analysis

• Market Cap: $59.28M
• Dividend Yield: N/A
• Average Volume (3M): 5.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -18.62%
• EPS Growth: -112.68%
• Country: US
• Employees: 102
• Sector: Technology
• Sector Strength: 77
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.09
• Shares Outstanding: 9,864,214
• 10 Day Avg. Volume: 7,792
• 30 Day Avg. Volume: 5,447
• PEG Ratio: 2.75
• Price to Book (P/B): 5.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -48.94
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 11.53
• Enterprise Value/Ebitda: -12.16
• 1Y Price Target: $7.00
• Price Target Upside: 18.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $6.00 ▲(1.69%Upside)

Interlink Electronics faces financial and valuation challenges, with declining revenues and a negative P/E ratio. However, technical indicators are neutral, and the recent stock issuance agreement is a positive step towards enhancing financial flexibility and strategic growth. These mixed factors result in a moderate overall 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 100 Inclusion

Nasdaq announced that PLTR and AXON would both be added to the Nasdaq 100.

Negative Factors

High P/E Ratios

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

Regulatory Uncertainty

Secular uncertainty from potentially significant structural changes to the regulatory process at the FDA.

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. 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 financial pressures, with declining revenues and profitability. The income statement shows negative net income and profit margins, and the cash flow statement highlights negative operating and free cash flows. While the balance sheet remains stable with a strong equity base, the financial health is at risk due to ongoing losses and cash flow challenges.

Income Statement

Interlink Electronics has faced declining revenue and profitability in recent periods. The TTM revenue shows a slight decrease compared to the previous year, and the company has been unable to achieve positive net income, leading to negative net profit margins. The gross profit margin has also declined from previous years, indicating potential cost pressures. The consistent negative EBIT and EBITDA margins suggest challenges in operational efficiency.

Balance Sheet

The company maintains a solid equity base with an equity ratio consistently above 70%, reflecting financial stability. However, the debt-to-equity ratio has increased slightly due to rising liabilities, although it remains at a manageable level. The return on equity has been negative due to ongoing net losses, indicating a need for improved profitability.

Cash Flow

Operating and free cash flows have been negative, highlighting cash flow challenges. The company's operating cash flow to net income ratio is negative, suggesting inefficient cash generation relative to reported losses. Free cash flow has experienced volatility, impacting the company's ability to fund operations and growth internally.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.22M	11.68M	13.94M	7.49M	7.48M	6.89M
	Gross Profit
4.32M	4.85M	6.56M	3.86M	4.06M	3.90M
	EBIT
-2.15M	-2.05M	-439.00K	-668.00K	-79.00K	-396.00K
	EBITDA
-1.49M	-1.06M	424.00K	-420.00K	202.00K	110.00K
	Net Income Common Stockholders
-2.05M	-1.98M	-383.00K	1.27M	-734.00K	113.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.58M	2.95M	4.30M	10.09M	10.78M	6.12M
	Total Assets
12.47M	13.12M	15.06M	14.98M	13.78M	10.02M
	Total Debt
1.04M	1.13M	159.00K	177.00K	175.00K	545.00K
	Net Debt
-1.54M	-1.82M	-4.14M	-9.91M	-10.60M	-5.58M
	Total Liabilities
1.11M	2.62M	2.03M	1.14M	1.07M	1.18M
	Stockholders Equity
9.77M	10.49M	13.03M	13.85M	12.71M	8.84M
Cash Flow		Free Cash Flow
-1.05M	-544.00K	-239.00K	-957.00K	72.00K	-51.00K
	Operating Cash Flow
-860.00K	-367.00K	-116.00K	-915.00K	231.00K	39.00K
	Investing Cash Flow
-502.00K	-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: 5.90
• 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 Positive. The current price of 5.9 is above the 20-day moving average (MA) of 5.61, below the 50-day MA of 5.95, and above the 200-day MA of 5.55, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 54.14 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 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	$67.21M	19.40	8.80%	1.90%	1.05%	-51.90%
Sector *	61 Neutral	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%
SOTK	56 Neutral	$60.80M	55.22	6.59%	―	8.40%	-18.22%
LINK	52 Neutral	$59.28M	―	-18.75%	―	-18.62%	-112.68%
LPTH	48 Neutral	$101.67M	―	-24.86%	―	2.59%	-48.02%
OPTX	47 Neutral	$63.47M	―	-2.17%	―	―	―
WRAP	43 Neutral	$72.83M	―	-166.89%	―	-44.97%	75.63%

Interlink Electronics Corporate Events

Interlink Electronics Announces New Stock Issuance Agreement

On May 15, 2025, Interlink Electronics, Inc. entered into an At-The-Market Issuance Sales Agreement with Lake Street Capital Markets, LLC, allowing the company to offer and sell up to $6,000,000 of its common stock. The proceeds from this offering are intended for working capital, capital expenditures, general corporate purposes, and potential acquisitions, enhancing the company’s financial flexibility and strategic growth opportunities.

The most recent analyst rating on (LINK) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Interlink Electronics stock, see the LINK Stock Forecast page.