IMMERSION CORPORATION (IMMR) Stock Fundamental Analysis
NASDAQ:IMMR - Nasdaq - US4525211078 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to IMMR. IMMR was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. IMMR has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on IMMR.
1. Profitability
1.1 Basic Checks
In the past year IMMR was profitable.
IMMR had positive earnings in 4 of the past 5 years.
IMMR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
IMMR has a Return On Assets (2.86%) which is comparable to the rest of the industry.
IMMR has a Return On Equity of 14.75%. This is amongst the best in the industry. IMMR outperforms 87.50% of its industry peers.
With a Return On Invested Capital value of 1.89%, IMMR perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
IMMR had an Average Return On Invested Capital over the past 3 years of 9.10%. This is significantly below the industry average of 15.57%.
The 3 year average ROIC (9.10%) for IMMR is well above the current ROIC(1.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 14.75% | ||
| ROIC | 1.89% |
ROA(3y)13%
ROA(5y)5.72%
ROE(3y)15.61%
ROE(5y)6.28%
ROIC(3y)9.1%
ROIC(5y)N/A
1.3 Margins
IMMR has a better Profit Margin (100.17%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of IMMR has grown nicely.
IMMR has a Operating Margin of 52.85%. This is amongst the best in the industry. IMMR outperforms 100.00% of its industry peers.
IMMR's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.85% | ||
| PM (TTM) | 100.17% | ||
| GM | N/A |
OM growth 3Y94.23%
OM growth 5Y2.01%
PM growth 3Y78.19%
PM growth 5Y15.41%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IMMR is creating some value.
The number of shares outstanding for IMMR has been reduced compared to 1 year ago.
IMMR has more shares outstanding than it did 5 years ago.
There is no outstanding debt for IMMR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that IMMR is in the distress zone and has some risk of bankruptcy.
IMMR has a worse Altman-Z score (0.48) than 68.75% of its industry peers.
IMMR has a Debt/Equity ratio of 0.81. This is a neutral value indicating IMMR is somewhat dependend on debt financing.
The Debt to Equity ratio of IMMR (0.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.21
WACC8.83%
2.3 Liquidity
IMMR has a Current Ratio of 1.55. This is a normal value and indicates that IMMR is financially healthy and should not expect problems in meeting its short term obligations.
IMMR has a Current ratio (1.55) which is comparable to the rest of the industry.
A Quick Ratio of 0.72 indicates that IMMR may have some problems paying its short term obligations.
The Quick ratio of IMMR (0.72) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.12% over the past year.
Measured over the past years, IMMR shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.60% on average per year.
Looking at the last year, IMMR shows a very negative growth in Revenue. The Revenue has decreased by -11.81% in the last year.
IMMR shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -21.11% yearly.
EPS 1Y (TTM)14.12%
EPS 3Y47.44%
EPS 5Y-9.6%
EPS Q2Q%N/A
Revenue 1Y (TTM)-11.81%
Revenue growth 3Y3.61%
Revenue growth 5Y-21.11%
Sales Q2Q%-22.96%
3.2 Future
Based on estimates for the next years, IMMR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.87% on average per year.
The Revenue is expected to grow by 189.84% on average over the next years. This is a very strong growth
EPS Next Y75.07%
EPS Next 2Y62.1%
EPS Next 3Y10.87%
EPS Next 5YN/A
Revenue Next Year1039.86%
Revenue Next 2Y388.92%
Revenue Next 3Y189.84%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.78, the valuation of IMMR can be described as very cheap.
IMMR's Price/Earnings ratio is rather cheap when compared to the industry. IMMR is cheaper than 96.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.88. IMMR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 2.20, the valuation of IMMR can be described as very cheap.
96.88% of the companies in the same industry are more expensive than IMMR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of IMMR to the average of the S&P500 Index (21.20), we can say IMMR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.78 | ||
| Fwd PE | 2.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IMMR indicates a somewhat cheap valuation: IMMR is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of IMMR may justify a higher PE ratio.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y62.1%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, IMMR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.55, IMMR pays a better dividend. On top of this IMMR pays more dividend than 84.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, IMMR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
IMMR has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y62.1%
EPS Next 3Y10.87%
7.23
-0.04 (-0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners59.01%
Inst Owner Change-1.06%
Ins Owners5.04%
Ins Owner Change-1.44%
Market Cap234.25M
Analysts82.5
Price Target12.5 (72.89%)
Short Float %9.67%
Short Ratio6.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend0.23
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-10.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.78 | ||
| Fwd PE | 2.2 | ||
| P/S | 6.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.02 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 10.62 |
EPS(TTM)1.25
EY17.29%
EPS(NY)3.28
Fwd EY45.43%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS1.05
BVpS7.11
TBVpS3.74
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 14.75% | ||
| ROCE | 2.39% | ||
| ROIC | 1.89% | ||
| ROICexc | 2.3% | ||
| ROICexgc | 2.8% | ||
| OM | 52.85% | ||
| PM (TTM) | 100.17% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)13%
ROA(5y)5.72%
ROE(3y)15.61%
ROE(5y)6.28%
ROIC(3y)9.1%
ROIC(5y)N/A
ROICexc(3y)48.9%
ROICexc(5y)N/A
ROICexgc(3y)48.9%
ROICexgc(5y)N/A
ROCE(3y)11.5%
ROCE(5y)N/A
ROICexcg growth 3Y84.52%
ROICexcg growth 5YN/A
ROICexc growth 3Y84.52%
ROICexc growth 5Y-44.16%
OM growth 3Y94.23%
OM growth 5Y2.01%
PM growth 3Y78.19%
PM growth 5Y15.41%
GM growth 3YN/A
GM growth 5YN/A
F-ScoreN/A
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.37 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 0.48 |
F-ScoreN/A
WACC8.83%
ROIC/WACC0.21
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)109.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.12%
EPS 3Y47.44%
EPS 5Y-9.6%
EPS Q2Q%N/A
EPS Next Y75.07%
EPS Next 2Y62.1%
EPS Next 3Y10.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.81%
Revenue growth 3Y3.61%
Revenue growth 5Y-21.11%
Sales Q2Q%-22.96%
Revenue Next Year1039.86%
Revenue Next 2Y388.92%
Revenue Next 3Y189.84%
Revenue Next 5YN/A
EBIT growth 1Y-26.59%
EBIT growth 3Y101.23%
EBIT growth 5Y-19.52%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-48.65%
FCF growth 3YN/A
FCF growth 5Y-21.67%
OCF growth 1Y-48.69%
OCF growth 3Y909.9%
OCF growth 5Y-21.68%