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Interlink Electronics Inc

LINK

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Interlink Electronics Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-18

Snapshot

  • Goodwill of 2.6M is 27% of equity - acquisition-heavy strategy with impairment risk given persistent losses[Goodwill]
  • P/S ratio 6.3x vs industry median 3.0x despite negative margins - priced for turnaround not yet visible[P/S Ratio]
  • R&D spend of 1.6M TTM is 14% of revenue vs 11% industry - heavy investment while burning cash[Research and Development]

Watch Triggers

  • Operating Margin TTM: Crosses above 0%First sign growth is translating to profitability - validates turnaround thesis
  • Cash and Equivalents: Falls below 1.5MWould signal potential dilutive financing within 12 months
  • Gross Margin TTM: Falls below 35%Would indicate pricing pressure undermining path to profitability

Bull Case

Revenue growing 17% 3Y CAGR (20x industry median growth) with 41% gross margins - scale could flip operating leverage

Total Revenue 3Y GrowthGross Margin TTM

Debt/equity of 0.09 with 4.9M working capital provides runway for turnaround without dilution

Debt to EquityWorking Capital

Bear Case

Negative FCF (-86K TTM) and operating loss (-1.6M) with only 3.0M cash - 18-24 month runway at current burn

Free Cash Flow TTMCash and Equivalents

P/S 6.3x (2x industry median) for unprofitable micro-cap with 25K daily volume - illiquid and expensive

P/S RatioVolume

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
35%

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Forward Thesis

Revenue growth (17% 3Y CAGR) must convert to profitability or cash runway becomes critical

1-3ymed
  • Operating loss of -1.6M TTM with only 3.0M cash
  • Gross margin 41% healthy but OpEx consuming all profit
  • FCF negative at -86K with minimal capex needs
3Y revenue CAGR 17% vs industry median 0.8%Operating margin -13% vs industry median +2.4%Cash of 3.0M covers ~2 years at current burn

Valuation Context

Caveats

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Fundamental company data provided by Morningstar, updated daily.

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