Immersion Corporation
Immersion Corporation Fundamental Analysis
Immersion Corporation (IMMR) shows moderate financial fundamentals with a PE ratio of 5.60, profit margin of 2.19%, and ROE of 12.19%. The company generates $1.7B in annual revenue with strong year-over-year growth of 35.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IMMR's fundamental strength across five key dimensions:
Efficiency Score
WeakIMMR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIMMR trades at attractive valuation levels.
Growth Score
ModerateIMMR shows steady but slowing expansion.
Financial Health Score
ExcellentIMMR maintains a strong and stable balance sheet.
Profitability Score
WeakIMMR struggles to sustain strong margins.
Key Financial Metrics
Is IMMR Expensive or Cheap?
P/E Ratio
IMMR trades at 5.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IMMR's PEG of -0.07 indicates potential undervaluation.
Price to Book
The market values Immersion Corporation at 0.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.24 times EBITDA. This is generally considered low.
How Well Does IMMR Make Money?
Net Profit Margin
For every $100 in sales, Immersion Corporation keeps $2.19 as profit after all expenses.
Operating Margin
Core operations generate 3.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.19 in profit for every $100 of shareholder equity.
ROA
Immersion Corporation generates $2.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Immersion Corporation generates limited operating cash flow of $15.42M, signaling weaker underlying cash strength.
Free Cash Flow
Immersion Corporation generates weak or negative free cash flow of $1.68M, restricting financial flexibility.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
IMMR converts 0.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How IMMR Stacks Against Its Sector Peers
| Metric | IMMR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.60 | 34.96 | Better (Cheaper) |
| ROE | 12.19% | 1045.00% | Weak |
| Net Margin | 2.19% | 5914873418.00% | Weak |
| Debt/Equity | 0.58 | 0.46 | Weak (High Leverage) |
| Current Ratio | 1.88 | 5.00 | Neutral |
| ROA | 2.70% | -295222.00% (disorted) | Weak |
IMMR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Immersion Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3251.72%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
539.49%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-122.69%
Industry Style: Growth, Innovation, High Beta
Declining