Instone Real Estate Group (INS) AI Stock Analysis

• Market Cap: €403.63M
• Dividend Yield: 6.36%
• Average Volume (3M): 7.33K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.49
• Revenue Growth: -10.58%
• EPS Growth: 253.72%
• Country: DE
• Employees: 336
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.10
• Shares Outstanding: 46,988,335
• 10 Day Avg. Volume: 9,157
• 30 Day Avg. Volume: 7,331
• PEG Ratio: 0.21
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 3.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €12.00
• Price Target Upside: 56.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €9.50 ▲(23.86% Upside)

Instone Real Estate Group's stock score is primarily influenced by its mixed financial performance and attractive valuation. While the company faces cash flow challenges, its stable balance sheet and undervalued stock price provide a solid foundation. Technical indicators suggest potential bearish sentiment, but the stock's high dividend yield offers a cushion for investors.

Positive Factors

Stable balance sheet and equity base

A manageable debt-to-equity ratio (~0.96) and a 34.22% equity ratio provide financing flexibility for multi‑phase developments and reduce near-term refinancing risk. Over the next several months this stability supports project execution, JV credibility and the ability to absorb cyclical slowdowns without forced asset sales.

Stable gross and net margins

Consistent gross margin (~25.9%) and a moderate net margin (6.99%) point to durable project-level economics and pricing discipline in residential development. Margin stability helps sustain reinvestment capacity, supports distributable cash over time, and cushions the business against moderate input cost or demand fluctuations over 2-6 months.

Diversified residential revenue streams

Multiple revenue sources—unit sales, rental income, project management fees and joint ventures—spread project and cashflow risk. This flexibility allows shifting emphasis between sales and leasing or partnering on large schemes, improving resilience to regional housing cycle shifts and supporting steady activity over the medium term.

Negative Factors

Negative operating and free cash flow

Persistently negative operating and free cash flows and an OCF-to-net-income ratio of 0.09 signal difficulty converting accounting profits into cash. This constrains the company's ability to self-fund developments, raises reliance on external financing or JV funding, and increases liquidity and refinancing risk across the next several months.

Eroding operating margins

Declining EBIT and EBITDA margins suggest rising costs or pressure on pricing at the operating level. Reduced operating profitability weakens buffers against interest or construction cost inflation and lowers project returns, making the business less resilient to prolonged cost increases or demand softness in the medium term.

Low ROE and rising leverage

An ROE of 4.66% combined with a rising debt‑to‑equity ratio signals modest capital efficiency and increasing financial leverage. Over time this can limit capacity to invest in new projects, raise financing costs, and amplify downside risk if market or interest conditions deteriorate, constraining shareholder returns.

Instone Real Estate Group Business Overview & Revenue Model

Company Description

Instone Real Estate Group (INS) is a prominent real estate development and investment firm specializing in the residential sector. The company focuses on the development of high-quality residential properties, including apartments, townhouses, and single-family homes, primarily in urban areas. Instone is dedicated to sustainable building practices and aims to create vibrant communities through innovative design and strategic location selection. With a strong portfolio of projects, the company caters to a diverse clientele, including first-time homebuyers, families, and investors.

How the Company Makes Money

Instone Real Estate Group generates revenue primarily through the sale and leasing of residential properties. Key revenue streams include the direct sale of developed homes and units, rental income from investment properties, and project management fees for overseeing construction and development processes. The company may also engage in joint ventures and partnerships with other real estate firms, local governments, and financial institutions, which can provide additional funding and resources for large-scale developments. Furthermore, Instone benefits from favorable market conditions, government incentives for housing development, and its reputation for quality, which can enhance property values and sales potential.

Instone Real Estate Group Financial Statement Overview

Summary

Instone Real Estate Group shows moderate growth and profitability in its income statement, with stable gross profit margins. The balance sheet is stable with manageable leverage, but cash flow challenges are significant, with negative operating and free cash flows.

Income Statement

Instone Real Estate Group shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth of 5.62%, which is a positive sign after previous declines. Gross profit margin is stable at around 25.9%, and the net profit margin is at 6.99%, indicating moderate profitability. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.96, which is manageable but slightly higher than the previous year. The return on equity (ROE) is at 4.66%, indicating moderate efficiency in generating profits from shareholders' equity. The equity ratio stands at 34.22%, showing a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals some concerns, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is significantly negative, indicating cash flow challenges. The operating cash flow to net income ratio is low at 0.09, suggesting difficulties in converting income into cash. The free cash flow to net income ratio is near 1, indicating that free cash flow is closely aligned with net income, despite being negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	412.93M	434.57M	514.25M	567.51M	741.24M	464.39M
Gross Profit	113.43M	104.83M	137.32M	139.89M	199.11M	147.18M
EBITDA	94.54M	77.73M	72.61M	70.19M	121.84M	85.83M
Net Income	50.03M	31.19M	20.11M	40.59M	83.05M	33.67M
Balance Sheet
Total Assets	1.78B	1.94B	1.84B	1.78B	1.52B	1.28B
Cash, Cash Equivalents and Short-Term Investments	342.12M	262.25M	383.61M	242.99M	123.13M	78.68M
Total Debt	12.01M	522.81M	547.35M	531.59M	400.22M	492.44M
Total Liabilities	1.17B	1.35B	1.26B	1.21B	929.81M	762.06M
Stockholders Equity	608.99M	587.38M	570.36M	573.71M	590.88M	519.43M
Cash Flow
Free Cash Flow	-32.72M	102.42M	107.61M	69.77M	42.15M	117.95M
Operating Cash Flow	-32.71M	102.48M	107.68M	70.17M	43.91M	119.88M
Investing Cash Flow	-17.13M	14.09M	11.54M	9.44M	123.52M	-184.12M
Financing Cash Flow	-37.91M	-73.93M	9.78M	45.01M	-123.51M	34.20M

Instone Real Estate Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:INS, the sentiment is Positive. The current price of 7.67 is below the 20-day moving average (MA) of 8.25, below the 50-day MA of 7.98, and below the 200-day MA of 8.61, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 61.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:INS.

Instone Real Estate Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIH1	81 Outperform	€321.29M	8.09	4.48%	0.39%	20.83%	-54.40%
PAT	69 Neutral	€733.11M	23.20	―	4.33%	0.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
INS	63 Neutral	€403.63M	7.44	8.42%	6.36%	-10.58%	253.72%
HABA	58 Neutral	€380.69M	27.38	3.53%	10.90%	0.93%	69.71%
BRNK	39 Underperform	€162.79M	-0.56	-37.86%	―	-13.22%	-67.54%