Instone Real Estate Group (INS) AI Stock Analysis

• Market Cap: €377.79M
• Dividend Yield: 6.22%
• Average Volume (3M): 7.33K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.46
• 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: 49.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €9.00 ▲(11.94% Upside)

Instone Real Estate Group's overall stock score is primarily influenced by its mixed financial performance and technical analysis. While the company maintains stable profitability margins and a solid capital structure, challenges with declining revenue growth and cash flow generation are notable concerns. The technical indicators suggest potential bearish momentum, but the stock's low P/E ratio and attractive dividend yield provide some valuation support. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Stable Profitability Margins

Stable profitability margins indicate effective cost management and operational efficiency, supporting long-term business sustainability.

Solid Capital Structure

A strong capital structure provides financial stability and flexibility, enabling the company to withstand economic fluctuations and invest in growth.

Effective Cash Flow Management

Effective cash flow management ensures the company can fund operations and investments, supporting sustainable growth and financial health.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests potential challenges in market demand or competitive pressures, which could impact long-term business expansion.

Increasing Leverage

Increasing leverage can pose financial risks and limit flexibility, potentially affecting the company's ability to invest in future opportunities.

Negative Free Cash Flow Growth

Negative free cash flow growth could hinder the company's ability to fund operations and strategic initiatives, impacting long-term viability.

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 presents a mixed financial picture. The company demonstrates stable profitability margins and a solid capital structure, but faces challenges with declining revenue growth and cash flow generation. While the balance sheet remains strong, with a reasonable debt-to-equity ratio, the increasing leverage and declining return on equity are areas of concern. The company should focus on reversing the negative revenue trend and enhancing cash flow management to strengthen its financial position and support long-term growth.

Income Statement

Instone Real Estate Group shows a mixed performance in its income statement. The company has experienced a decline in revenue growth, with a negative trend over the past few years, indicating potential challenges in market demand or competitive pressures. However, the company maintains a stable gross profit margin and a reasonable net profit margin, suggesting effective cost management. The EBIT and EBITDA margins are relatively healthy, reflecting operational efficiency. Overall, while profitability metrics are stable, the declining revenue growth is a concern.

Balance Sheet

The balance sheet of Instone Real Estate Group indicates a moderate financial position. The debt-to-equity ratio is slightly below 1, showing a balanced approach to leveraging, but it has increased over the years, which could pose a risk if not managed carefully. The return on equity has been declining, suggesting reduced efficiency in generating profits from shareholders' equity. However, the equity ratio remains strong, indicating a solid capital structure. The company should focus on improving ROE and managing debt levels to enhance financial stability.

Cash Flow

The cash flow statement reveals some challenges for Instone Real Estate Group. The free cash flow growth rate has been negative recently, which could impact the company's ability to fund operations and investments. The operating cash flow to net income ratio is relatively low, indicating potential issues in converting profits into cash. However, the free cash flow to net income ratio is close to 1, suggesting that the company is effectively managing its cash flows relative to its net income. Improving cash flow generation should be a priority to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	390.97M	434.57M	514.25M	567.51M	741.24M	464.39M
Gross Profit	101.27M	104.83M	137.32M	139.89M	199.11M	147.18M
EBITDA	70.17M	77.73M	72.61M	70.19M	121.84M	85.83M
Net Income	27.31M	31.19M	20.11M	40.59M	83.05M	33.67M
Balance Sheet
Total Assets	2.00B	1.94B	1.84B	1.78B	1.52B	1.28B
Cash, Cash Equivalents and Short-Term Investments	425.38M	262.25M	383.61M	242.99M	123.13M	78.68M
Total Debt	554.77M	522.81M	547.35M	531.59M	400.22M	492.44M
Total Liabilities	1.42B	1.35B	1.26B	1.21B	929.81M	762.06M
Stockholders Equity	579.26M	587.38M	570.36M	573.71M	590.88M	519.43M
Cash Flow
Free Cash Flow	82.60M	102.42M	107.61M	69.77M	42.15M	117.95M
Operating Cash Flow	82.67M	102.48M	107.68M	70.17M	43.91M	119.88M
Investing Cash Flow	10.46M	14.09M	11.54M	9.44M	123.52M	-184.12M
Financing Cash Flow	-82.39M	-73.93M	9.78M	45.01M	-123.51M	34.20M

Instone Real Estate Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.04
• 50DMA: Negative
• 100DMA: Negative
• 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 8.04 is above the 20-day moving average (MA) of 7.75, below the 50-day MA of 8.14, and below the 200-day MA of 8.54, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 30.74 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	€330.55M	8.33	4.48%	0.40%	20.83%	-54.40%
PAT	69 Neutral	€705.64M	22.33	―	4.26%	0.23%	―
INS	66 Neutral	€377.79M	6.96	8.42%	6.22%	-10.58%	253.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HABA	58 Neutral	€355.06M	25.54	3.53%	10.98%	0.93%	69.71%
BRNK	39 Underperform	€153.59M	-0.53	-37.86%	―	-13.22%	-67.54%