Immersion Corp (IMMR) stock analysis
Close on Nov 12, 2026Market cap $231.45MP/E 21.1Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed11 of 30 checks passed
Immersion passes 11 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 5/6
- Growth
- 1/6
- Past performance
- 1/6
- Financial health
- 1/6
- Dividend
- 3/6
What stands out
Margin of safety over 20%
The price is 60.5% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $7.03 is below our fair value estimate of $17.82.
Return on capital over 10%
Return on invested capital was 14.8%, above the 10% that usually covers the cost of capital.
Revenue growing 10%+ a year
Revenue grew 267% a year over the last three fiscal years.
What to watch
Return on equity under 15%
Return on equity was 3.5% over the last twelve months and averaged 12.4% over five years; we look for 15% on both.
EPS growing under 10% a year
Diluted EPS grew -28.9% a year over the last three fiscal years.
Interest not well covered
Operating income covers interest expense 2.9 times; we look for at least 5.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.27; above 3 is the safe zone and below 1.8 the distress zone.
Valuation5/6
P/E above its 5-year median
Immersion's P/E of 21.3 is above its own 5-year median of 8.0.
P/E below the industry
Immersion's P/E of 21.3 is below the Computer and Office Equipment median of 26.0.
EV/EBITDA below its 5-year median
Immersion's EV/EBITDA of 3.8 is below its 5-year median of 4.2.
P/B below the industry
Immersion's price-to-book of 0.78 is below the Computer and Office Equipment median of 3.71.
Trading below fair value
The share price of $7.03 is below our fair value estimate of $17.82.
Margin of safety over 20%
The price is 60.5% below fair value, more than the 20% cushion we look for.
Growth1/6
Revenue growing 10%+ a year
Revenue grew 267% a year over the last three fiscal years.
EPS growing under 10% a year
Diluted EPS grew -28.9% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growth against the industry
Needs revenue for this year and last.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.
Past performance1/6
Return on equity under 15%
Return on equity was 3.5% over the last twelve months and averaged 12.4% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 14.8%, above the 10% that usually covers the cost of capital.
Return on equity below the industry
Immersion's return on equity of 3.5% is below the Computer and Office Equipment median of 7.5%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was 0.6% over the last twelve months, against a 5-year average of 46.7%.
Net margin below the industry
Immersion's net margin of 0.6% is below the Computer and Office Equipment median of 3.8%.
Financial health1/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest not well covered
Operating income covers interest expense 2.9 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 2.14 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.27; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
Immersion paid dividends worth 4.3% of the share price over the last twelve months.
Yield below Treasuries
The 4.3% yield is below the 4.4% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 3.8% or more; Immersion yields 4.3%.
Dividend stability
Fewer than five years of dividend history.
Not covered by earnings
Dividends take 102% of net income, leaving little room.
Covered by free cash flow
Dividends take 17.3% of free cash flow.
Fair value
How we estimate itOur estimate per share
$17.82
The share price is 61% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 16.9× | 8.0× | 26.0× | $5.59 | 40% |
| EV/EBITDA | 12.0× | 4.2× | 19.9× | $33.36 | 35% |
| P/B | 2.5× | 1.3× | 3.7× | $22.36 | 10% |
| Earnings power | 9.3% cost of equity | – | – | $11.13 | 15% |
| Fair value | $17.82 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 8.0
- Computer and Office Equipment median 26.0
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $2.90M
- Value traded per 1% price move
- $2.03M
Downside
Low risk
- Typical loss in a bad month
- 10.7%
- Volatility (annualized)
- 44%
- Sharpe ratio, 1 year
- -0.05
- Beta to the S&P 500 (5Y)
- 0.89
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2010 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | – | +270.9% | +118.1% | +40.7% | |
| Operating income | – | +13.1% | +7.8% | – | |
| Net income | – | -48.9% | -18.4% | – | |
| EPS, diluted | – | -48.7% | -18.5% | – | |
| Free cash flow | – | +27.7% | +20.2% | +7.0% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2015 | FY2019 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 3.5% | -21.9% | – | |
| Return on assets | 2.8% | -14.8% | – | |
| Current ratio | 4.54 | 9.05 | 2.30 | |
| Capex to revenue | 7.0% | 0.4% | 0.9% | |
| Diluted shares | 29M | 32M | 33M |
Where the cash went
Fiscal 2020 to 2026, five years combined
Immersion generated $137.28M from operations and spent $84.22M on capital expenditure, dividends and share buybacks. 20% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2023 | 100.2% | 0.17× | 1.19× | 19.9% |
| FY2022 | 79.7% | 0.21× | 1.22× | 20.5% |
| FY2021 | 35.6% | 0.26× | 1.32× | 12.2% |
| FY2020 | 17.7% | 0.28× | 1.50× | 7.3% |
| FY2019 | -55.8% | 0.27× | 1.48× | -21.9% |
| FY2018 | 49.0% | 1.12× | 1.81× | 99.4% |
| FY2017 | -129.4% | 0.45× | 2.40× | -139.4% |
| FY2016 | -69.0% | 0.55× | 1.47× | -55.5% |
| FY2015 | 4.5% | 0.62× | 1.24× | 3.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$4.52M
- Cash generatingOperating cash flow above zero$59.07M
- Return on assets improvedROA up on the prior year– → –
- Earnings backed by cashOperating cash flow above net income$59.07M vs $4.52M
- Less leverageLong-term debt to assets fell– → 6.7%
- Better liquidityCurrent ratio rose– → 2.30
- No dilutionShare count did not rise– → 33M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose– → –
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