Inovalis REIT (INO.UN) AI Stock Analysis

• Market Cap: C$30.91M
• Dividend Yield: 7.55%
• Average Volume (3M): 23.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -22.78%
• EPS Growth: -19.14%
• Country: CA
• Employees: 300
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Office
• EPS (TTM): N/A
• Shares Outstanding: 33,206,180
• 10 Day Avg. Volume: 12,316
• 30 Day Avg. Volume: 23,033
• PEG Ratio: 0.02
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.75
• 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: C$1.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: C$1.00 ▲(8.70%Upside)

Inovalis REIT scores low due to significant financial performance challenges, including declining revenues, high leverage, and cash flow issues. The technical analysis provides some neutral to slightly positive signals, but the negative valuation metrics weigh heavily on the overall score. Immediate strategic actions are required to improve financial health and investor sentiment.

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 derived from its portfolio of office properties. The company leases these properties to a diverse range of tenants, ensuring a steady flow of rental payments. Additionally, Inovalis REIT engages in property management and development activities that can lead to increased property values and rental income over time. The trust may also benefit from capital appreciation of its real estate assets, which can be realized through strategic sales or refinancing activities. Partnerships with local real estate operators and investment in high-demand urban areas further bolster its revenue potential by enhancing asset performance and occupancy rates.

Inovalis REIT Financial Statement Overview

Summary

Inovalis REIT is experiencing financial difficulties, with declining revenues and negative profitability margins. The high debt-to-equity ratio and negative cash flow growth reflect substantial financial challenges.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.11M	33.57M	31.14M	34.46M	35.77M
Gross Profit	13.78M	23.22M	21.63M	24.19M	26.60M
EBITDA	-61.80M	-21.80M	16.23M	35.87M	17.54M
Net Income	-69.13M	-29.69M	-36.98M	30.33M	18.20M
Balance Sheet
Total Assets	412.22M	484.06M	561.11M	587.25M	712.09M
Cash, Cash Equivalents and Short-Term Investments	6.25M	12.61M	45.18M	76.63M	80.38M
Total Debt	215.51M	219.45M	243.09M	207.12M	288.66M
Total Liabilities	230.11M	236.69M	272.93M	241.16M	335.43M
Stockholders Equity	182.04M	246.42M	286.98M	344.79M	375.24M
Cash Flow
Free Cash Flow	913.00K	3.97M	21.43M	-112.81M	6.04M
Operating Cash Flow	913.00K	3.97M	21.43M	-7.92M	-2.67M
Investing Cash Flow	701.00K	2.15M	-60.47M	106.61M	33.00M
Financing Cash Flow	-7.92M	-39.08M	9.70M	-97.54M	-37.17M

Inovalis REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 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 TSE:INO.UN, the sentiment is Negative. The current price of 0.92 is below the 20-day moving average (MA) of 0.96, below the 50-day MA of 0.93, and below the 200-day MA of 0.93, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:INO.UN.

Inovalis REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFC	81 Outperform	C$45.65M	5.04	11.24%	5.88%	89.98%	27.59%
Sector *	61 Neutral	AU$2.82B	8.09	4.17%	5.29%	17.25%	41.52%
RPR.UN	53 Neutral	C$30.05M	―	-162.05%	1.79%	0.66%	-178.71%
INO.UN	50 Neutral	C$30.91M	―	-25.21%	7.55%	-22.78%	-19.14%
MPCT.UN	37 Underperform	C$47.13M	―	-5.93%	1.95%	-2.06%	43.41%
FCA.UN		C$35.74M	―	-4.25%	―	―	―
SRES		C$20.33M	237.50	-0.13%	3.80%	―	―