INNEOVA Holdings (INEO) AI Stock Analysis

• Market Cap: $13.01M
• Dividend Yield: N/A
• Average Volume (3M): 208.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.05
• Revenue Growth: 8.54%
• EPS Growth: -178.36%
• Country: US
• Employees: 129
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 16,545,624
• 10 Day Avg. Volume: 51,148
• 30 Day Avg. Volume: 208,777
• PEG Ratio: -31.89
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 13.41
• Enterprise Value/Market Cap: 3.04
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.62
• Enterprise Value/Ebitda: 20.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $0.50 ▼(-30.56% Downside)

INNEOVA Holdings is currently facing significant financial and technical challenges. The low financial performance score is driven by high leverage and low profitability. Technical indicators suggest bearish momentum, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

Steady revenue growth suggests that INNEOVA is successfully expanding its market presence and product adoption, which is crucial for long-term sustainability.

Cash Generation

Strong growth in free cash flow indicates effective cash generation, providing the company with the means to reinvest in growth opportunities and manage debt.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single source, enhancing financial stability and resilience against market fluctuations.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, as it may constrain the company's ability to invest in growth and manage economic downturns.

Low Profitability

Low profitability indicates challenges in cost management and operational efficiency, which could hinder long-term financial performance and investor confidence.

Declining Return on Equity

A declining return on equity suggests inefficiencies in generating shareholder returns, which may impact investor sentiment and capital raising ability.

INNEOVA Holdings Business Overview & Revenue Model

Company Description

INNEOVA Holdings Ltd operates as a holding company. The Company, through its subsidiaries, manufactures replacement parts for motor vehicles and non-vehicle combustion engines serving a number of industries. INNEOVA Holdings serves marine, energy, mining, agriculture, and oil and gas construction sectors worldwide

How the Company Makes Money

INNEOVA Holdings generates revenue through multiple key streams, including product sales, service contracts, and licensing agreements. The company sells proprietary technology solutions directly to businesses in its target sectors, which contributes a significant portion of its income. Additionally, INNEOVA engages in long-term service contracts that provide ongoing maintenance and support for its products, creating a steady revenue flow. Licensing agreements for its patented technologies with third-party manufacturers further enhance earnings. Strategic partnerships with industry leaders and research institutions also play a crucial role in driving innovation and expanding market reach, thus contributing positively to the company's overall financial performance.

INNEOVA Holdings Financial Statement Overview

Summary

INNEOVA Holdings faces challenges in profitability and leverage, with low margins and high debt levels. While revenue and free cash flow have shown growth, the company must focus on improving operational efficiency and reducing debt to enhance financial stability and shareholder value.

Income Statement

INNEOVA Holdings has shown modest revenue growth over the years, with a 3.45% increase in the latest year. However, profitability remains a concern, as evidenced by the low net profit margin of 0.01% and declining EBIT and EBITDA margins. The company needs to improve its cost management to enhance profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.30, indicating significant leverage, which poses a risk. The return on equity has drastically decreased to 0.09%, suggesting inefficiencies in generating returns for shareholders. The equity ratio stands at 22.42%, reflecting a moderate level of equity financing.

Cash Flow

The cash flow statement shows a positive trend with a 46.63% growth in free cash flow, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.09, suggesting potential issues in converting income into cash. The free cash flow to net income ratio is relatively strong at 0.71, showing decent cash flow relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.33M	59.52M	51.45M	43.22M	48.94M
Gross Profit	10.93M	10.91M	9.28M	7.95M	7.75M
EBITDA	1.94M	3.41M	2.74M	2.16M	2.40M
Net Income	8.00K	1.55M	1.45M	1.37M	972.00K
Balance Sheet
Total Assets	39.59M	39.06M	40.33M	34.41M	40.33M
Cash, Cash Equivalents and Short-Term Investments	1.75M	3.73M	919.00K	1.09M	2.35M
Total Debt	20.40M	17.72M	18.11M	15.66M	20.04M
Total Liabilities	30.72M	36.01M	38.98M	33.13M	26.50M
Stockholders Equity	8.88M	2.89M	1.27M	1.29M	13.83M
Cash Flow
Free Cash Flow	1.89M	1.16M	-2.34M	3.09M	2.79M
Operating Cash Flow	2.67M	1.61M	-2.06M	3.12M	3.02M
Investing Cash Flow	-774.00K	-455.00K	-283.00K	-30.00K	-222.00K
Financing Cash Flow	-568.00K	-1.55M	2.14M	-4.06M	-2.25M

INNEOVA Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.72
• 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 INEO, the sentiment is Negative. The current price of 0.72 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.84, and below the 200-day MA of 1.03, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 33.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INEO.

INNEOVA Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LIDR	50 Neutral	$89.07M	-0.77	-75.54%	―	-19.11%	73.51%
AEVA	47 Neutral	$654.27M	―	-192.35%	―	89.90%	5.13%
INVZ	47 Neutral	$244.95M	―	-71.46%	―	46.09%	46.01%
FRSX	42 Neutral	$9.29M	-0.06	―	―	-12.38%	60.99%
INEO	40 Underperform	$13.01M	-5.11	―	―	8.54%	-178.36%
LAZR	38 Underperform	$66.96M	―	―	―	0.97%	61.79%