Stock fact sheet · data as of
Immersion Corporation (IMMR): fair value, margin of safety and Wheel Score
Technology · Software - Application · United States · High Growth
Is IMMR undervalued?
Immersion Corporation (IMMR) closed at 7.14 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 163.03, which puts the price 96% below it. 5 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between Lynch (1.25) and DCF (1,347.88). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files IMMR under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for IMMR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 1,347.88 | +18778% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 7.95 | +11% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 5.03 | -30% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 1.25 | -83% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 19.08 | +167% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 47.38 | +564% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 30.85 | +332% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 4.41 | -38% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 3.46 | -52% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 4.30 | -40% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 10.00 | +40% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Immersion Corporation scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 1.7/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 0.7%, ROE 1.5%, ROA 0.3% - with debt at 1.05 times equity and a free-cash-flow yield of 25.8%.
The dividend yield is high at 4.20% (payout ratio 102%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Product and Other 94%, Rental Income 5%, Fixed Fee License and Per Unit Royalties 1% (quarter Q2 FY2026).
Institutional ownership scores 7/10, insider activity 9/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 0.7% |
|---|---|---|---|
| GLS Moat | 1.7 / 10 | ROE | 1.5% |
| Debt / equity | 1.05 | ROA | 0.3% |
| Free-cash-flow yield | 25.8% | Payout ratio | 102% |
| Institutions | 7 / 10 | Insiders · Congress | 9 · 5 / 10 |
Wheel Score 71: Good
With a Wheel Score of 71 - the Good band - Immersion Corporation clears the Sunday Scan's "70 or higher" rule. The parts: Value 25/25, Health 13/20, Moat 3/15, Premium 20/20, Stability 10/20; Moat (3/15) scores lowest.
Implied volatility is 45% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 14,529 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 482k shares a day on a market cap of $237M, with a beta of 0.99; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 96% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 3 / 15 | moat 1.7/10 | |
| Premium | 20 / 20 | implied volatility 45% | |
| Stability | 10 / 20 | 482k shares/day, $237M cap, beta 0.99 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for IMMR in the nightly calendar. The shares go ex-dividend on 16 Oct 2026 (0.0750 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to Immersion Corporation by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BLND Blend Labs, Inc. | 1.00 | 1.30 | +23% | 45Weak | $237M |
| MCAP MCAP Inc. | 9.50 | 27.95 | +66% | 38No options | $234M |
| RWWI Rand Worldwide, Inc. | 7.15 | 18.20 | +61% | 39No options | $240M |
| EXFY Expensify, Inc. | 2.53 | 3.95 | +36% | 45Weak | $244M |
| XPER Xperi Inc. | 5.04 | 2.95 | -71% | 38Weak | $246M |
| SMRT SmartRent, Inc. | 1.16 | - | - | 40Weak | $222M |
| SVCO Silvaco Group, Inc. Common Stock | 6.55 | - | - | 30No options | $222M |
| AZ A2Z Cust2Mate Solutions Corp. | 5.76 | - | - | 40Weak | $254M |
| KLTR Kaltura, Inc. | 1.45 | 2.57 | +44% | 45Weak | $221M |
| RBBN Ribbon Communications Inc. | 1.46 | 4.05 | +64% | 57Fair | $261M |
| WEWA Wewards, Inc. | 2.00 | - | - | 28No options | $215M |
| ASUR Asure Software, Inc. | 7.33 | 10.85 | +32% | 45Weak | $212M |
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Start free See the Sunday ScanQuestions about IMMR
Is IMMR undervalued right now?
By the GLS models, yes: at 7.14 the stock is 96% below the average fair value of 163.03 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of IMMR and what does it mean?
IMMR scores 71 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for IMMR?
163.03 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Immersion Corporation report earnings next?
No upcoming earnings date is recorded for IMMR in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does IMMR have listed options, and how liquid are they?
Yes. The nightly snapshot found 56 listed contracts with 14,529 open interest across all expiries and implied volatility of 45% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.