Inovalis REIT (INO.UN) AI Stock Analysis

• Market Cap: C$30.29M
• Dividend Yield: N/A
• Average Volume (3M): 44.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• 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: 51 Neutral
• Price Target: C$0.81 ▼(-9.56% Downside)

Inovalis REIT's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and negative profitability. While technical analysis shows some short-term strength, the valuation metrics are concerning due to negative earnings and lack of dividends. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Stable Cash Flow from Long-term Leases

Long-term leases with rent escalations provide a stable and predictable cash flow, supporting financial stability and enabling strategic planning.

Strategic Partnerships

Partnerships with local firms enhance market reach and operational efficiency, potentially leading to better asset management and cost savings.

Diversified Portfolio

A diversified portfolio across key European markets reduces risk and enhances resilience against local economic downturns.

Negative Factors

Declining Revenue

Declining revenue indicates potential issues in market demand or operational efficiency, which could impact long-term growth and profitability.

Negative Cash Flow

Negative cash flow limits the company's ability to invest in growth opportunities and meet financial obligations, posing a risk to financial health.

High Leverage

High leverage increases financial risk, especially if interest rates rise or cash flows decline, potentially affecting long-term sustainability.

Inovalis REIT Business Overview & Revenue Model

Company Description

Inovalis REIT (INO.UN) is a real estate investment trust that primarily focuses on acquiring and managing a diversified portfolio of income-producing commercial properties in Europe, particularly in France and Germany. The company aims to provide stable cash distributions to its unitholders by investing in office and retail properties that have strong tenant profiles and favorable locations. Inovalis REIT's core services include property management, leasing, and asset management, which enhance the value of its real estate holdings and optimize rental income.

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

Inovalis REIT is experiencing financial difficulties, with declining revenues and negative profitability margins. The balance sheet shows high leverage, and cash flow metrics indicate cash management issues. Strategic interventions are needed to improve financial health.

Income Statement

The company's income statement shows a decline in revenue from the previous year, with a negative revenue growth rate of -28.1%. Gross profit margin is 56.0%, but the net profit margin is substantially negative at -286.7%. The company is also operating with negative EBIT and EBITDA margins, indicating challenges in profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.18, indicating significant leverage. The equity ratio stands at 44.1%, showing some asset backing. However, the return on equity is negative at -37.9%, reflecting poor returns on equity investments.

Cash Flow

Cash flow analysis indicates a significant decline in operating cash flow, with a free cash flow growth rate of -77.0%. The operating cash flow to net income ratio is negative, suggesting cash flow challenges. However, free cash flow remains positive, albeit reduced.

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: 0.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.9 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.80, and above the 200-day MA of 0.86, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 68.18 is Neutral, neither overbought nor oversold. The STOCH value of 77.14 is Neutral, 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	75 Outperform	C$355.72M	8.49	8.60%	7.44%	0.92%	92.93%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AP.UN	55 Neutral	C$1.83B	-3.16	-10.26%	13.87%	1.86%	1.84%
RPR.UN	53 Neutral	C$23.61M	-0.16	-141.77%	―	-6.21%	65.52%
TNT.UN	53 Neutral	C$124.69M	-4.07	-7.68%	5.80%	-5.17%	-187.42%
D.UN	53 Neutral	C$326.93M	-2.15	-14.98%	5.81%	-1.06%	-20.07%
INO.UN	51 Neutral	C$30.29M	-0.81	-17.55%	―	-7.30%	55.77%