Interlink Electronics (LINK) AI Stock Analysis

• Market Cap: $51.29M
• Dividend Yield: N/A
• Average Volume (3M): 5.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -18.62%
• EPS Growth: -112.68%
• Country: US
• Employees: 102
• Sector: Technology
• Sector Strength: 76
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.09
• Shares Outstanding: 9,864,214
• 10 Day Avg. Volume: 5,918
• 30 Day Avg. Volume: 5,254
• PEG Ratio: 2.75
• Price to Book (P/B): 5.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -48.94
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 11.53
• Enterprise Value/Ebitda: -12.16
• 1Y Price Target: $7.00
• Price Target Upside: 34.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Interlink Electronics struggles with financial challenges, highlighted by declining revenues and negative profitability, which significantly impacts its stock score. The technical analysis shows weak momentum, and the valuation metrics do not offer much appeal due to negative earnings. The recent stock issuance provides some strategic flexibility but also suggests a reliance on external funding. Overall, these factors result in a below-average stock score.

Positive Factors

Demand Fundamentals

There is a positive sentiment towards near-term demand fundamentals in India's C&W sector.

Export Potential

Constructive outlook on export potential for India’s C&W sector.

Nasdaq 100 Inclusion

Nasdaq announced that PLTR and AXON would both be added to the Nasdaq 100.

Negative Factors

High P/E Ratios

Both Polycab and KEI are trading at high P/E ratios, suggesting a wait for a better entry point.

Regulatory Uncertainty

Secular uncertainty from potentially significant structural changes to the regulatory process at the FDA.

Valuation Concerns

Valuations have been reset downwards due to concerns on new capacity in India’s C&W sector.

Interlink Electronics Business Overview & Revenue Model

Company Description

Interlink Electronics, Inc., together with its subsidiaries, designs, develops, manufactures, and sells force-sensing technologies that incorporate proprietary materials technology, and firmware and software into sensor-based products and custom sensor system solutions. Its products comprise sensor components, subassemblies, modules, and products that support cursor control and novel three-dimensional user inputs. The company also provides multi-finger capable rugged trackpads; Force-Sensing Resistor sensors; force sensing linear potentiometers for menu navigation and control; and integrated mouse modules and pointing solutions to various electronic devices. In addition, it offers human machine interface technology platforms for various applications, including vehicle entry, vehicle multi-media control interface, rugged touch controls, presence detection, collision detection, speed and torque controls, biological monitoring, and others; and embedded firmware development and integration support services. The company serves multi-national and start-up companies, design houses, original design manufacturers, original equipment manufacturers, and universities in various markets, such as consumer electronics, automotive, industrial, and medical through direct sales employees, as well as outside sales representatives and distributors. It operates in the United States, Asia, the Middle East, Europe, and internationally. Interlink Electronics, Inc. was incorporated in 1985 and is headquartered in Irvine, California.

How the Company Makes Money

Interlink Electronics generates revenue through the sale of its proprietary sensor technologies and HMI solutions to a broad range of industries. Key revenue streams include the direct sale of products to original equipment manufacturers (OEMs), licensing agreements for its technology, and customized engineering services for specific client needs. The company also benefits from collaborative partnerships with technology firms to integrate its sensors into broader system applications, thereby expanding its market reach and enhancing its revenue potential.

Interlink Electronics Financial Statement Overview

Summary

Interlink Electronics is facing financial pressures, with declining revenues and profitability. The income statement shows negative net income and profit margins, and the cash flow statement highlights negative operating and free cash flows. While the balance sheet remains stable with a strong equity base, the financial health is at risk due to ongoing losses and cash flow challenges.

Income Statement

Interlink Electronics has faced declining revenue and profitability in recent periods. The TTM revenue shows a slight decrease compared to the previous year, and the company has been unable to achieve positive net income, leading to negative net profit margins. The gross profit margin has also declined from previous years, indicating potential cost pressures. The consistent negative EBIT and EBITDA margins suggest challenges in operational efficiency.

Balance Sheet

The company maintains a solid equity base with an equity ratio consistently above 70%, reflecting financial stability. However, the debt-to-equity ratio has increased slightly due to rising liabilities, although it remains at a manageable level. The return on equity has been negative due to ongoing net losses, indicating a need for improved profitability.

Cash Flow

Operating and free cash flows have been negative, highlighting cash flow challenges. The company's operating cash flow to net income ratio is negative, suggesting inefficient cash generation relative to reported losses. Free cash flow has experienced volatility, impacting the company's ability to fund operations and growth internally.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.22M	11.68M	13.94M	7.49M	7.48M	6.89M
	Gross Profit
4.32M	4.85M	6.56M	3.86M	4.06M	3.90M
	EBIT
-2.15M	-2.05M	-439.00K	-668.00K	-79.00K	-396.00K
	EBITDA
-1.49M	-1.06M	424.00K	-420.00K	202.00K	110.00K
	Net Income Common Stockholders
-2.05M	-1.98M	-383.00K	1.27M	-734.00K	113.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.58M	2.95M	4.30M	10.09M	10.78M	6.12M
	Total Assets
12.47M	13.12M	15.06M	14.98M	13.78M	10.02M
	Total Debt
1.04M	1.13M	159.00K	177.00K	175.00K	545.00K
	Net Debt
-1.54M	-1.82M	-4.14M	-9.91M	-10.60M	-5.58M
	Total Liabilities
1.11M	2.62M	2.03M	1.14M	1.07M	1.18M
	Stockholders Equity
9.77M	10.49M	13.03M	13.85M	12.71M	8.84M
Cash Flow		Free Cash Flow
-1.05M	-544.00K	-239.00K	-957.00K	72.00K	-51.00K
	Operating Cash Flow
-860.00K	-367.00K	-116.00K	-915.00K	231.00K	39.00K
	Investing Cash Flow
-502.00K	-491.00K	-4.88M	735.00K	-159.00K	-90.00K
	Financing Cash Flow
-400.00K	-400.00K	-750.00K	-350.00K	4.52M	186.00K

Interlink Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LINK, the sentiment is Negative. The current price of 5.2 is below the 20-day moving average (MA) of 5.86, below the 50-day MA of 6.01, and below the 200-day MA of 5.52, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 36.99 is Neutral, neither overbought nor oversold. The STOCH value of 23.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LINK.

Interlink Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELTK	70 Outperform	$71.15M	16.81	12.41%	1.79%	-0.36%	-40.16%
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.76%
SOTK	56 Neutral	$60.48M	54.94	6.59%	―	8.40%	-18.22%
LPTH	48 Neutral	$109.39M	―	-42.93%	―	2.59%	-47.67%
OPTX	47 Neutral	$52.10M	―	-2.17%	―	―	―
LINK	46 Neutral	$51.29M	―	-18.75%	―	-18.62%	-112.68%
WRAP	43 Neutral	$75.36M	―	-166.89%	―	-44.97%	75.63%

Interlink Electronics Corporate Events

Interlink Electronics Announces New Stock Issuance Agreement

On May 15, 2025, Interlink Electronics, Inc. entered into an At-The-Market Issuance Sales Agreement with Lake Street Capital Markets, LLC, allowing the company to offer and sell up to $6,000,000 of its common stock. The proceeds from this offering are intended for working capital, capital expenditures, general corporate purposes, and potential acquisitions, enhancing the company’s financial flexibility and strategic growth opportunities.

The most recent analyst rating on (LINK) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Interlink Electronics stock, see the LINK Stock Forecast page.

Spark’s Take on LINK Stock

According to Spark, TipRanks’ AI Analyst, LINK is a Neutral.

Interlink Electronics faces significant challenges with declining revenue and negative profitability metrics, impacting its financial performance score heavily. The technical analysis indicates a neutral to slightly bearish outlook, while valuation metrics are weak due to a negative P/E ratio and no dividend yield. These factors result in a below-average overall stock score.

To see Spark’s full report on LINK stock, click here.