INNEOVA Holdings (INEO) AI Stock Analysis

• Market Cap: $10.08M
• Dividend Yield: N/A
• Average Volume (3M): 208.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• 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: 2.45
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: 12.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $0.60 ▼(-3.06% Downside)

The score is primarily held back by weak profitability and high leverage, despite improving free cash flow. Technicals are neutral-to-weak with a negative MACD and the stock trading below longer-term moving averages, while valuation is hard to justify due to a negative P/E and no dividend yield data.

Positive Factors

Free Cash Flow Improvement

A 46.63% rise in free cash flow indicates improving cash generation capacity independent of accounting earnings. Durable FCF growth strengthens ability to fund capex, pay down debt or reinvest in products, increasing financial flexibility over multiple quarters.

Revenue Growth Trend

Consistent positive revenue growth across periods shows demand traction in the auto-parts market. Durable top-line expansion provides a platform for operating leverage and margin recovery if cost control follows, supporting longer-term earnings improvement.

Lean Operating Base

A relatively small headcount suggests a lean cost structure and potential for scalable revenue per employee. Over time this can enable faster margin improvement as sales grow, and makes restructuring or efficiency initiatives less disruptive to operations.

Negative Factors

Very Weak Profitability

Near-zero net margin and falling operating margins indicate persistent profitability issues. Structural low margins limit retained earnings for reinvestment, reduce shock absorption to demand swings, and make sustainable returns to shareholders difficult without material operational change.

High Leverage

A debt-to-equity ratio above 2.0 and low equity ratio point to significant leverage. Over months this raises refinancing and interest-rate risks, constrains strategic flexibility, and magnifies earnings volatility—especially problematic given weak profitability.

Poor Cash Conversion

Operating cash flow equal to only ~9% of net income signals earnings are not converting to cash. This structural cash conversion gap can impair ability to service debt, fund capex, or invest in growth without external funding, weakening long-term financial resilience.

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

Financial strength is constrained by very weak profitability (net margin ~0.01% with declining EBIT/EBITDA margins) and high leverage (debt-to-equity 2.30, ROE ~0.09%). Free cash flow improved strongly (46.63% growth), but cash conversion looks weak (operating cash flow to net income 0.09).

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: Neutral
• Last Price: 0.62
• 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 INEO, the sentiment is Neutral. The current price of 0.62 is above the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.62, and below the 200-day MA of 0.93, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 50.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
AEVA	50 Neutral	$767.22M	-2.40	-192.35%	―	89.90%	5.13%
INVZ	48 Neutral	$200.56M	―	-71.46%	―	46.09%	46.01%
LIDR	46 Neutral	$73.89M	-0.75	-75.54%	―	-19.11%	73.51%
FRSX	44 Neutral	$6.95M	-0.04	―	―	-12.38%	60.99%
INEO	43 Neutral	$10.08M	-3.96	―	―	8.54%	-178.36%