Instone Real Estate Group (INS) AI Stock Analysis

• Market Cap: €381.08M
• Dividend Yield: 6.8%
• Average Volume (3M): 7.33K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.38
• 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: €17.00
• Price Target Upside: 131.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €8.00 ▲(8.84% Upside)

Instone Real Estate Group's overall stock score is influenced primarily by its financial performance and valuation. The company shows stable profitability and a solid capital structure, but faces challenges with declining revenue growth and cash flow generation. The stock appears undervalued with a low P/E ratio and high dividend yield, which could attract value investors. However, technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold indicators. Investors should weigh the potential value against the current market sentiment and financial challenges.

Instone Real Estate Group Business Overview & Revenue Model

Company Description

Instone Real Estate Group SE, together with its subsidiaries, develops residential real estate properties in Germany. The company develops residential buildings and apartment complexes, as well as publicly subsidized residential properties; designs modern city districts; and renovates and refurbishes listed buildings. It serves owner-occupiers, private investors, and institutional investors. As of December 31, 2021, the company had a portfolio of 54 development projects. Instone Real Estate Group SE was founded in 1991 and is headquartered in Essen, Germany.

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: Negative
• Last Price: 7.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:INS, the sentiment is Negative. The current price of 7.35 is below the 20-day moving average (MA) of 7.94, below the 50-day MA of 8.41, and below the 200-day MA of 8.56, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 30.45 is Neutral, neither overbought nor oversold. The STOCH value of 8.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€370.21M	9.32	4.48%	0.39%	20.83%	-54.40%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
INS	61 Neutral	€381.08M	12.86	8.42%	6.80%	-10.58%	253.72%
PAT	59 Neutral	€616.36M	28.46	―	4.83%	0.23%	―
HABA	52 Neutral	€415.66M	27.33	3.53%	10.94%	0.93%	69.71%
BRNK	41 Neutral	€159.78M	―	-37.86%	―	-13.22%	-67.54%