Immersion, based in Aventura, Florida, develops and licenses patented haptic technology and software, employing 14 staff. The company targets diverse applications including mobile devices, gaming, and virtual reality.
Based on our analysis, Immersion Corporation appears to be significantly undervalued in comparison to its sector peers, earning a rating of 4 out of 5 stars from Cashu. Several key financial ratios highlight this discrepancy.
Immersion's Price-to-Earnings (PE) Ratio stands at 4.17, notably lower than the sector average of 27.78. A lower PE ratio can indicate that a company is undervalued relative to its earnings, suggesting potential for price appreciation as the market recognizes its true value.
Additionally, the Price-to-Book (PB) Ratio of 1.23, compared to the sector’s 3.19, further underscores Immersion's undervaluation. A PB ratio below the sector average may signify that the stock is trading for less than its book value, indicating a possible investment opportunity.
The company's Net Profit Margin of 100.17% is strikingly positive, especially when juxtaposed against the sector's -18.44%. This indicates that Immersion not only generates profits but does so at a much higher rate than its competitors.
Furthermore, Immersion’s Return on Equity (ROE) is 18.56%, contrasting sharply with the sector's -25.14%. A strong ROE suggests effective management in generating profits from shareholder equity.
The company also boasts a Dividend Yield of 1.80%, significantly higher than the sector average of 0.09%, providing a compelling incentive for income-focused investors. Lastly, a Return on Assets (ROA) of 15.75% versus the sector's -13.93% indicates efficient utilization of assets to generate earnings.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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