Immersion Corporation (IMMR)
Valuation Overview•Is Immersion Corporation Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 48/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
IMMR demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company is driving exceptional top-line expansion (227.7% 3Y CAGR) paired with highly explosive earnings growth (119.2% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 9.1%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $281.4M | +3538.9% | +227.7% | +102.8% | +37.0% | |
| EBITDA | $28.3M | — | +105.1% | — | — | |
| Net Income | -$5.5M | +165.6% | +93.3% | — | +36.1% | |
| EPS (Diluted) | $-0.22 | +295.2% | +119.2% | — | +40.2% | |
| Free Cash Flow | $47.0M | -517.0% | — | -20.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 27.8% | 76.1% | 82.2% | 90.9% |
| Operating Margin | 9.1% | 42.4% | 37.0% | 2.4% |
| Net Margin | 4.5% | 62.4% | 48.1% | 4.0% |
| FCF Margin | -4.7% | 52.7% | 41.4% | 9.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.15 | $0.36 | +146.6% | ||
| Q1'26 | $0.14 | $0.08 | -41.4% | ||
| Q1'26 | $0.15 | $-0.03 | -120.5% | ||
| Q4'25 | $0.10 | $0.83 | +746.9% | ||
| Q2'25 | $0.08 | $0.59 | +637.5% | ||
| Q1'25 | $0.14 | $0.47 | +235.7% | ||
| Q4'24 | $0.34 | $0.83 | +144.1% | ||
| Q3'24 | $0.50 | $0.89 | +78.0% |
Total return is -8.9% (1Y), lagging the benchmark by -33.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +6.6% | -2.8% | — |
| 1Y | -8.9% | -33.9% | +3.2% |
| 3YCAGR | +1.4% | -19.2% | +10.8% |
| 5YCAGR | -1.6% | -16.2% | +11.3% |
| 10YCAGR | +1.7% | -12.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Immersion Corporation (IMMR) valuation, health, and returns.
Based on peer relative multiples, Immersion Corporation appears Limited: Cheap versus peers compared to industry peers.
Immersion Corporation has multiple valuation anchors: Peer Relative Fair Value: $45.98 | Wall Street Analyst Target: $10.00 (implying +49.7% upside). A convergence of these signals offers higher conviction.
Immersion Corporation displays fair financial health with a composite quality score of 48/100, supported by a Altman Z-Score of 1.7 (distress zone), Piotroski F-Score of 2/9, Return on Invested Capital (ROIC) of 21.2%.
Immersion Corporation pays a 5.8% dividend yield, covered by a 14% payout ratio with 0 years of growth, supplemented by a 0.1% buyback yield.
Immersion Corporation's current growth trajectory is Accelerating. The company achieved +3538.9% 1Y revenue growth and +295.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +227.7%.
Wall Street consensus is Buy based on 15 analysts, beating EPS expectations in 67% of recent quarters with a 1-quarter streak. The consensus price target represents a +49.7% change from current levels.
Investment risks for Immersion Corporation include: -32.6% 1-year max drawdown, high beta (1.52x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.52x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.