MeritValue

IMMERSION CORP

IMMRdata completeness 100%17 fiscal years on file
The thesis, from the filings

IMMERSION CORP earns about 22% on invested capital, far above its ~9% cost of capital, but has diluted owners by 4% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $9.59 and $13.17 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2025FY 2026
Revenue$35.1M1$38.5M2$33.9M3$1.56B4$1.73B4
Net income$12.5M5$30.7M6$34M7$64.3M8$4.52M8
Operating cash flow$17.4M9$40.1M10$20.6M11−$57.6M12$59.1M12
Capital expenditure$335,00013$30,00013$014$11.2M15$16.2M15
Free cash flow (derived)$17.1M9$40.1M10$20.6M11−$68.8M12$42.9M12
Total debt———$206.2M16$142M16
Cash & equivalents$51.5M17$48.8M18$56.1M19$72.6M20$138.3M20
Diluted shares31.8M33.5M32.5M33.0M33.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$89.7
your share of equity
Profit it earned you last year
$1.37
Free cash flow it threw off
$12.94
Debt you’d be carrying
$42.87

10 shares is a claim on $89.7 of net worth that earned you $1.37 and generated $12.94 of cash last year, against $42.87 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
22% avg · 5y
FY21 14%FY22 25%FY23 42%FY25 24%FY26 6%

It earned about 22% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+4% shares · 5y

Share count is up 4% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 31% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $9.59 and $13.17 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$13.17
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth6.4%
  • fcfBase$20.6M
DCF · Growth Exit 5Y
$11.59
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth6.4%
  • fcfBase$20.6M
Earnings Power Value
$9.59
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$30.7M
  • growthAssumed0.0%
Graham Number
$5.32
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years6.4%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $11.59
The three cases
Bear0.0%$8.77
Base6.4%$11.59
Bull11.4%$14.29

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 6.4%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-23-004561 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001213900-24-021235 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001193125-26-102681 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2025-04-30 · accession 0001193125-26-316089 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001628280-23-004561 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001213900-24-021235 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001193125-26-102681 (NetIncomeLoss)
  8. 10-K · period ending 2025-04-30 · accession 0001193125-26-316089 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001628280-23-004561 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001213900-24-021235 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001193125-26-102681 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2025-04-30 · accession 0001193125-26-316089 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001628280-23-004561 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-12-31 · accession 0001193125-26-102681 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2025-04-30 · accession 0001193125-26-316089 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2025-04-30 · accession 0001193125-26-316089 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001628280-23-004561 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001213900-24-021235 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001193125-26-102681 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-04-30 · accession 0001193125-26-316089 (CashAndCashEquivalentsAtCarryingValue)