Immersion Corporation Fundamental Analysis (NASDAQ: IMMR)
Immersion Corporation Fundamental Analysis (NASDAQ: IMMR)
Immersion Corporation (NASDAQ: IMMR) shows weak financial fundamentals with a PE ratio of 53.54, profit margin of 0.26%, and ROE of 1.51%. The company generates $1.7B in annual revenue with strong year-over-year growth of 11.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
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
ModerateIMMR shows balanced valuation metrics.
Growth Score
ModerateIMMR shows steady but slowing expansion.
Financial Health Score
ExcellentIMMR maintains a strong and stable balance sheet.
Profitability Score
ModerateIMMR maintains healthy but balanced margins.
Key Financial Metrics
Is IMMR Expensive or Cheap?
P/E Ratio
IMMR trades at 53.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IMMR's PEG of -0.46 indicates potential undervaluation.
Price to Book
The market values Immersion Corporation at 0.84 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.33 times EBITDA. This is generally considered low.
How Well Does IMMR Make Money?
Net Profit Margin
For every $100 in sales, Immersion Corporation keeps $0.26 as profit after all expenses.
Operating Margin
Core operations generate 1.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.51 in profit for every $100 of shareholder equity.
ROA
Immersion Corporation generates $0.40 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 $59.18M, signaling weaker underlying cash strength.
Free Cash Flow
Immersion Corporation generates weak or negative free cash flow of $42.96M, restricting financial flexibility.
FCF Per Share
Each share generates $1.29 in free cash annually.
FCF Yield
IMMR converts 17.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How IMMR Stacks Against Its Sector Peers
| Metric | IMMR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.54 | 34.86 | Worse (Expensive) |
| ROE | 1.51% | 709.00% | Weak |
| Net Margin | 0.26% | -1416.00% (disorted) | Weak |
| Debt/Equity | 0.75 | 0.22 | Weak (High Leverage) |
| Current Ratio | 2.29 | 6.00 | Strong Liquidity |
| ROA | 0.40% | 255.00% | Weak |
IMMR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
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
4641.65%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-136.03%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-235.63%
Industry Style: Growth, Innovation, High Beta
Declining