Inovalis REIT (INO.UN) AI Stock Analysis

• Market Cap: C$38.71M
• Dividend Yield: N/A
• Average Volume (3M): 44.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -7.30%
• EPS Growth: 55.77%
• Country: CA
• Employees: 300
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): <0.01
• Shares Outstanding: 33,263,870
• 10 Day Avg. Volume: 42,959
• 30 Day Avg. Volume: 43,997
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 35.04
• 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: 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: 48 Neutral
• Price Target: C$1.00 ▲(7.53% Upside)

The score is held down primarily by weak financial performance (declining revenue, negative margins, and negative operating/free cash flow) and an unattractive earnings-based valuation (negative P/E). Technicals are a partial offset with an established uptrend, but overbought signals increase short-term downside risk.

Positive Factors

Steady Cash Flow

Leasing to multinational corporations ensures a stable and predictable cash flow, which is crucial for maintaining regular distributions to unitholders and supports long-term financial stability.

Long-term Leases

Long-term leases with rent escalations provide a reliable revenue stream and protect against short-term market fluctuations, supporting sustainable income growth and financial planning.

Strategic Partnerships

Partnerships with local firms improve market reach and operational efficiency, enabling better asset management and potentially higher returns on investment.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or pricing power, which can affect profitability and the ability to fund future growth initiatives.

Negative Cash Flow

Negative cash flow limits the company's ability to invest in new opportunities, pay down debt, or distribute dividends, potentially impacting long-term financial health.

Negative Profit Margins

Negative profit margins suggest inefficiencies or competitive pressures, which could hinder the company's ability to improve profitability and sustain operations over the long term.

Inovalis REIT Business Overview & Revenue Model

Company Description

Inovalis Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning office properties primarily located in France and Germany but also opportunistically in other European countries where assets meet the REIT's investment criteria.

How the Company Makes Money

Inovalis REIT generates revenue primarily through rental income from its commercial properties. The company leases its properties to a variety of tenants, including multinational corporations, which provides a steady cash flow. Additionally, Inovalis REIT benefits from long-term leases that typically include rent escalations, ensuring income growth over time. The company may also realize profits through property appreciation and potential sales of assets at favorable market conditions. Strategic partnerships with local real estate firms and property managers further enhance its operational efficiency and market reach, contributing to its overall earnings.

Inovalis REIT Financial Statement Overview

Summary

Weak fundamentals driven by declining revenue, negative profitability (net and EBIT margins), and negative operating/free cash flow. Balance sheet leverage is moderate (debt-to-equity slightly above 1) with negative ROE, limiting financial flexibility despite a stable equity ratio.

Income Statement

Inovalis REIT's income statement reveals significant challenges. The company has experienced declining revenue over recent periods, with a negative revenue growth rate in the most recent annual report. Margins are under pressure, with negative net profit margins and EBIT margins in the TTM period, indicating profitability issues. The gross profit margin has also decreased over time, suggesting rising costs or pricing pressures.

Balance Sheet

The balance sheet shows a moderate level of financial leverage, with a debt-to-equity ratio slightly above 1 in the TTM period. This indicates a reliance on debt financing, which could pose risks if interest rates rise or cash flows decline. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis highlights significant concerns, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, indicating a decline in cash generation capabilities. The operating cash flow to net income ratio is also negative, suggesting that the company is not effectively converting its earnings into cash. This could impact the company's ability to meet its financial obligations and invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.87M	24.11M	33.57M	31.14M	34.46M	35.77M
Gross Profit	11.56M	13.78M	23.22M	21.63M	24.19M	26.60M
EBITDA	-27.67M	-61.80M	-21.80M	16.23M	35.87M	17.54M
Net Income	-35.14M	-69.13M	-29.69M	-36.98M	30.33M	18.20M
Balance Sheet
Total Assets	421.26M	412.22M	484.06M	561.11M	587.25M	712.09M
Cash, Cash Equivalents and Short-Term Investments	13.93M	6.25M	12.61M	45.18M	76.63M	80.38M
Total Debt	217.25M	215.51M	221.04M	243.09M	207.12M	288.66M
Total Liabilities	230.82M	230.11M	236.69M	272.93M	241.16M	335.43M
Stockholders Equity	190.56M	182.04M	246.42M	286.98M	344.79M	375.24M
Cash Flow
Free Cash Flow	-1.84M	913.00K	3.97M	21.43M	-112.81M	6.04M
Operating Cash Flow	-1.84M	913.00K	3.97M	21.43M	-7.92M	-2.67M
Investing Cash Flow	25.80M	701.00K	2.15M	-60.47M	106.61M	33.00M
Financing Cash Flow	-20.29M	-7.92M	-39.08M	9.70M	-97.54M	-37.17M

Inovalis REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:INO.UN, the sentiment is Positive. The current price of 0.93 is below the 20-day moving average (MA) of 1.03, above the 50-day MA of 0.92, and above the 200-day MA of 0.88, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 69.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:INO.UN.

Inovalis REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTB.UN	78 Outperform	C$368.08M	8.78	8.60%	7.37%	0.92%	92.93%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AP.UN	55 Neutral	C$1.96B	-3.42	-10.26%	13.67%	1.86%	1.84%
RPR.UN	53 Neutral	C$18.46M	-0.13	-141.77%	―	-6.21%	65.52%
TNT.UN	53 Neutral	C$123.01M	-4.00	-7.68%	5.79%	-5.17%	-187.42%
D.UN	53 Neutral	C$356.93M	-2.35	-14.98%	5.65%	-1.06%	-20.07%
INO.UN	48 Neutral	C$38.71M	-1.08	-17.55%	―	-7.30%	55.77%