Is IMMR a high-quality business?

AlphaMadera's AlphaQuality grade scores Immersion Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how IMMR compares to a Buffett-style quality bar.

What is Immersion Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to IMMR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes IMMR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

IMMR - Immersion Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $10.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

High-Growth Software

AlphaQuality — archetype-weighted quantitative grade

B- 68.0 / 100 composite

Composite Grade

Composite of six pillars weighted for high-growth software businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

F 23.0

5yr Avg ROIC 4.6% 33/100
Operating Margin Trend -15.22 pp/yr 0/100

Capital Efficiency

Weight: 15%

C 53.0

5yr Avg ROE 9.3% 56/100
5yr Share-Count CAGR 0.9% 47/100

Growth Quality

Weight: 35%

A+ 96.0

5yr Revenue CAGR 165.4% 100/100
5yr EPS CAGR 119.2% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

B+ 78.0

5yr FCF Margin 42.0% 100/100
5yr FCF/NI Conversion 0.55x 51/100

Balance Sheet

Weight: 10%

C 56.1

Net Debt / EBITDA 1.66x 75/100
Interest Coverage (EBIT/Int) 2.92x 44/100
Altman Z-Score 1.86 37/100

Stability

Weight: 5%

D 36.7

EPS Volatility (σ/μ) 1.15 0/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

2 of 2 gurus held; 1 new buy; 1 trimmed.

Holders: 2 +1
Avg Δ position: -25.9%
New buys: 1
Full exits: 0

Laffont new
Cooperman decreased -26%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (35%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.