(IMMR) Immersion - NASDAQ
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 216m USD | Total Return: -8.9% in 12m
Avg Turnover: 3.30M
Qual. Beats: -1
Rev. Trend: 92.3%
Warnings
High Debt/EBITDA (6.8) with thin interest coverage (0.2)
High Debt while negative Cash Flow
Interest Coverage Ratio 0.2 is critical
Beneish M-Score 1.00 > -1.5 - likely earnings manipulation
Tailwinds
Shakeout
Immersion Corporation (NASDAQ: IMMR) is an intellectual property and licensing firm specializing in haptic technology. Founded in 1993, the company develops hardware and software solutions that simulate the sense of touch in digital interfaces across the mobile, automotive, gaming, and medical sectors.
The business model relies heavily on high-margin licensing agreements and royalty payments derived from a vast portfolio of patents. In the haptics sector, companies often operate as patent assertion entities, where revenue is generated by licensing core technology to original equipment manufacturers (OEMs) rather than through direct consumer product manufacturing.
The company also maintains diverse revenue streams through technical assistance, marketing services, and niche operations in the educational technology and bookstore management segments. For a deeper dive into these revenue segments, ValueRay provides additional data points. Immersion’s primary market reach spans North America, Europe, and Asia, serving major integrated circuit and device manufacturers.
- High margin licensing revenue from mobile and gaming haptic technology patents
- Legal settlements and litigation outcomes regarding intellectual property infringement claims
- Strategic expansion into automotive touch interface and medical device markets
- Shareholder returns driven by aggressive stock buybacks and special dividend distributions
- Diversification into physical and digital textbook retail and educational wholesale operations
| Net Income: -135k TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.07 > 0.02 and ΔFCF/TA -0.87 > 1.0 |
| NWC/Revenue: 26.21% < 20% (prev 24.86%; Δ 1.35% < -1%) |
| CFO/TA -0.06 > 3% & CFO -86.4m > Net Income -135k |
| Net Debt (305.2m) to EBITDA (44.7m): 6.83 < 3 |
| Current Ratio: 1.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (32.9m) vs 12m ago 1.34% < -2% |
| Gross Margin: 19.68% > 18% (prev 99.83%; Δ -80.16% > 0.5%) |
| Asset Turnover: 138.3% > 50% (prev 133.5%; Δ 4.76% > 0%) |
| Interest Coverage Ratio: 0.19 > 6 (EBIT TTM 2.42m / Interest Expense TTM 12.6m) |
| A: 0.32 (Total Current Assets 1.01b - Total Current Liabilities 554.0m) / Total Assets 1.43b |
| B: 0.02 (Retained Earnings 30.0m / Total Assets 1.43b) |
| C: 0.00 (EBIT TTM 2.42m / Avg Total Assets 1.27b) |
| D: 0.34 (Book Value of Equity 295.4m / Total Liabilities 870.7m) |
| Altman-Z'' = 2.54 = A |
| DSRI: 3.0 (Receivables 418.8m/100.8m, Revenue 1.75b/1.47b) |
| GMI: 5.07 (GM 99.83% / 19.68%) |
| AQI: 0.67 (AQ_t 0.13 / AQ_t-1 0.20) |
| SGI: 1.19 (Revenue 1.75b / 1.47b) |
| TATA: 0.06 (NI -135k - CFO -86.4m) / TA 1.43b) |
| Beneish M = 2.26 (Cap -4..+1) = D |
As of June 20, 2026, the stock is trading at USD 6.68 with a total of 690,864 shares traded.
Over the past week, the price has changed by +0.60%,
over one month by +8.79%,
over three months by +9.54% and
over the past year by -8.89%.
Immersion has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy IMMR.
- StrongBuy: 1
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 13.5 | 102.1% |
P/E Forward = 17.3913
P/S = 0.124
P/B = 0.7329
P/EG = 2.2143
Revenue TTM = 1.75b USD
EBIT TTM = 2.42m USD
EBITDA TTM = 44.7m USD
Long Term Debt = 138.4m USD (from longTermDebt, two quarters ago)
Short Term Debt = 40.0m USD (from shortTermDebt, last quarter)
Debt = 483.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 172.4m
Net Debt = 305.2m USD (calculated: Debt 483.1m - CCE 177.9m)
Enterprise Value = 521.7m USD (216.5m + Debt 483.1m - CCE 177.9m)
Interest Coverage Ratio = 0.19 (Ebit TTM 2.42m / Interest Expense TTM 12.6m)
EV/FCF = -5.12x (Enterprise Value 521.7m / FCF TTM -102.0m)
FCF Yield = -19.54% (FCF TTM -102.0m / Enterprise Value 521.7m)
FCF Margin = -5.82% (FCF TTM -102.0m / Revenue TTM 1.75b)
Net Margin = -0.01% (Net Income TTM -135k / Revenue TTM 1.75b)
Gross Margin = 19.68% ((Revenue TTM 1.75b - Cost of Revenue TTM 1.41b) / Revenue TTM)
Gross Margin QoQ = 17.92% (prev 20.01%)
Tobins Q-Ratio = 0.36 (Enterprise Value 521.7m / Total Assets 1.43b)
Interest Expense / Debt = 2.61% (Interest Expense 12.6m / Debt 483.1m)
Taxrate = 43.39% (6.93m / 16.0m)
NOPAT = 1.37m (EBIT 2.42m * (1 - 43.39%))
Current Ratio = 1.83 (Total Current Assets 1.01b / Total Current Liabilities 554.0m)
Debt / Equity = 1.64 (Debt 483.1m / totalStockholderEquity, last quarter 295.4m)
Debt / EBITDA = 6.83 (Net Debt 305.2m / EBITDA 44.7m)
Debt / FCF = -2.99 (negative FCF - burning cash) (Net Debt 305.2m / FCF TTM -102.0m)
Total Stockholder Equity = 298.5m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.01% (Net Income -135k / Total Assets 1.43b)
RoE = -0.05% (Net Income TTM -135k / Total Stockholder Equity 298.5m)
RoCE = 0.55% (EBIT 2.42m / Capital Employed (Equity 298.5m + L.T.Debt 138.4m))
RoIC = 0.16% (NOPAT 1.37m / Invested Capital 831.1m)
WACC = 4.12% (E(216.5m)/V(699.6m) * Re(10.01%) + D(483.1m)/V(699.6m) * Rd(2.61%) * (1-Tc(0.43)))
Discount Rate = 10.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 28.89 | Cagr: 0.31%
[DCF] Fair Price = unknown (Cash Flow -102.0m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -1.05 | # QB: -1
Revenue Correlation: 92.33 | Revenue CAGR: 492.0% | SUE: N/A | # QB: 0