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INNOVATE Corp (VATE)
NYSE:VATE
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INNOVATE Corp
(NYSE:VATE)
59Neutral
INNOVATE Corp (VATE) vs. S&P 500 (SPY)
Market Cap
$95.88M
Dividend YieldN/A
Average Volume (3M)133.67K
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth-16.30%
EPS Growth31.36%
CountryUS
Employees4,042
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)-3.67
Shares Outstanding13,261,379
10 Day Avg. Volume127,677
30 Day Avg. Volume133,667
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.08
Price to Cash Flow (P/CF)-0.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
INNOVATE Corp Business Overview & Revenue Model
Company DescriptionINNOVATE Corp (VATE) is a diversified holding company engaged in a broad array of sectors, including infrastructure, life sciences, and spectrum. The company operates through its subsidiaries to deliver specialized products and services, leveraging its expertise to drive growth across its core areas.
How the Company Makes MoneyINNOVATE Corp makes money through a diversified revenue model that includes its infrastructure segment, which provides engineering and construction services, generating income from large-scale projects. In the life sciences sector, the company earns revenue through the development and commercialization of healthcare products and solutions, often in partnership with other entities. The spectrum division capitalizes on the management and leasing of wireless spectrum assets, contributing to its financial performance. The company's earnings are significantly influenced by strategic partnerships and contracts within its operating sectors, ensuring a steady flow of income.
INNOVATE Corp Financial Statement Overview
Summary
INNOVATE Corp's financial performance is marked by declining revenues and negative equity, indicating significant financial instability. However, improvements in cash flow suggest potential for recovery. The company needs to focus on achieving consistent profitability and strengthening its balance sheet to ensure long-term viability.Income Statement
The company has shown a decline in revenue over the years with a TTM revenue of $1.231 billion, down from $1.423 billion in 2023. The gross profit margin for TTM is approximately 17.08%, which indicates moderate profitability. However, the net profit margin remains negative at -2.27% for TTM, reflecting ongoing challenges in achieving profitability. The EBITDA margin has increased to 6.84% in TTM, showing some improvement in operational efficiency. Overall, the income statement reveals a company striving to stabilize its operations amidst declining revenues and persistent losses.55
Neutral
Balance Sheet
The balance sheet indicates a weak financial position with negative stockholders' equity of -$163.1 million in TTM, exacerbated by a high debt burden. The debt-to-equity ratio cannot be calculated due to negative equity, highlighting financial risk. Additionally, the equity ratio is negative, reflecting high leverage and financial instability. The company's total assets have decreased over time, further indicating financial challenges. These factors present significant financial risks, requiring strategic financial restructuring.40
Negative
Cash Flow
The TTM cash flow shows positive free cash flow of $40.7 million, marking a substantial improvement from $8.1 million in 2023. The operating cash flow to net income ratio is strong at over 2 times, indicating good cash flow generation relative to reported losses. The free cash flow to net income ratio further underscores effective cash management. While cash flow is a bright spot, it must be sustained to support the financial restructuring needed.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.23B | 1.42B | 1.64B | 1.21B | 1.01B | 1.81B | Gross Profit |
| 210.40M | 216.00M | 221.40M | 183.70M | 167.30M | 279.30M | EBIT |
| 41.40M | 29.20M | 13.40M | -9.10M | 77.70M | 95.80M | EBITDA |
| 84.20M | 69.80M | 53.10M | 16.00M | 54.90M | 65.80M | Net Income Common Stockholders |
| -27.90M | -37.60M | -40.80M | -79.80M | -46.40M | -17.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.72B | 80.80M | 80.40M | 45.50M | 4.69B | 4.26B | Total Assets |
| 6.50B | 1.04B | 1.15B | 1.08B | 6.74B | 6.96B | Total Debt |
| 743.90M | 771.90M | 714.40M | 626.30M | 561.50M | 773.60M | Net Debt |
| 418.90M | 691.10M | 634.00M | 580.80M | 329.20M | 544.80M | Total Liabilities |
| 6.30B | 1.18B | 1.18B | 1.07B | 6.14B | 6.50B | Stockholders Equity |
| 88.10M | -149.10M | -103.70M | -65.50M | 559.80M | 349.80M |
| Cash Flow | Free Cash Flow | ||||
| 40.70M | 8.10M | -30.20M | 2.90M | 23.90M | 84.70M | Operating Cash Flow |
| 57.70M | 26.50M | -9.50M | 27.00M | 41.70M | 110.50M | Investing Cash Flow |
| 24.40M | 39.10M | -22.50M | -223.20M | 162.30M | -263.70M | Financing Cash Flow |
| -28.30M | -65.30M | 68.10M | 4.30M | -204.60M | 62.40M |
INNOVATE Corp Technical Analysis
Negative
7.72
Price Trends
8.97
Negative
7.23
Positive
6.22
Positive
Market Momentum
-0.70
Positive
36.66
Neutral
15.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VATE, the sentiment is Negative. The current price of 7.72 is below the 20-day moving average (MA) of 10.12, below the 50-day MA of 8.97, and above the 200-day MA of 6.22, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 15.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VATE.
INNOVATE Corp Risk Analysis
INNOVATE Corp disclosed 81 risk factors in its most recent earnings report. INNOVATE Corp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
INNOVATE Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $12.74B | 27.61 | 26.35% | 0.96% | 8.89% | 669.67% | |
73 Outperform | $6.78B | 18.57 | 26.45% | 1.16% | 11.30% | ― | |
72 Outperform | $6.01B | 2.92 | 72.85% | ― | 5.43% | 2094.12% | |
62 Neutral | $15.14B | 25.65 | 10.92% | 0.96% | -13.76% | -13.39% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
61 Neutral | $3.96B | 17.27 | 20.35% | ― | 12.61% | 7.43% | |
59 Neutral | $95.88M | ― | 17.11% | ― | -16.30% | 31.36% |
* Industrials Sector Average
Performance Comparison
VATE
INNOVATE Corp
7.72
0.70
9.97%
ACM
Aecom Technology
94.38
3.36
3.69%
DY
Dycom
144.12
2.79
1.97%
FLR
Fluor
35.60
-2.13
-5.65%
J
Jacobs Solutions
122.17
-1.32
-1.07%
KBR
KBR
50.73
-9.62
-15.94%
INNOVATE Corp Earnings Call Summary
Earnings Call Date: Nov 6, 2024 | % Change Since: 50.19% | Next Earnings Date: Mar 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth and achievements in the Life Sciences and Spectrum segments, with impressive sales growth, margin improvements, and increased profitability. However, these were offset by notable declines in consolidated revenue, particularly in the Infrastructure segment, and an increased net loss, indicating mixed performance across segments.Highlights
Strong Growth in Life Sciences
R2 posted worldwide top line sales of $5.7 million, a record high. Year-to-date sales grew 217% compared to the same period last year, and system unit sales worldwide saw a massive increase of 416% from third quarter '23 to third quarter '24.
Improved Margins in DBM Global
DBM Global achieved a gross margin improvement year-over-year of approximately 360 basis points to 18.8% and adjusted EBITDA year-over-year by approximately 70 basis points to 9%.
Spectrum Segment Profitability
Spectrum achieved adjusted EBITDA of $1.7 million in the third quarter, a $2 million improvement year-over-year. Year-to-date, Spectrum has delivered $4.8 million in adjusted EBITDA, a significant increase compared to $900,000 through the first 9 months of 2023.
Expansion and Brand Awareness for R2
R2 expanded its international footprint and saw significant growth in brand awareness, evidenced by a 4,086% increase in social mentions and a 498% increase in web users.
Lowlights
Decrease in Consolidated Revenue
Consolidated total revenue for the third quarter of 2024 was $242.2 million, a decrease of 35.5% compared to $375.3 million in the prior year period.
Infrastructure Segment Revenue Decline
Infrastructure segment revenue decreased 37% to $232.8 million from $369.3 million in the prior year quarter, primarily driven by the timing and size of projects at Banker Steel and DBMG.
Increased Net Loss
Net loss attributable to common stockholders and participating preferred stockholders for the third quarter of 2024 was $15.3 million compared to a net loss of $7.3 million in the prior year period.
Decrease in Adjusted EBITDA
Total adjusted EBITDA was $16.8 million in the third quarter of 2024, a decrease from $22.1 million in the prior year period, driven by declines in the Infrastructure segment.
Company Guidance
During the earnings call for the third quarter of 2024, INNOVATE Corp. provided guidance highlighting various performance metrics across its business segments. The company reported consolidated revenues of $242.2 million and adjusted EBITDA of $16.8 million. DBM Global, a key segment, achieved revenues of $232.8 million with an adjusted EBITDA of $20.9 million, noting a year-over-year gross margin improvement of approximately 360 basis points to 18.8%. The Life Sciences segment, led by R2, exhibited extraordinary growth with a 217% increase in top-line sales year-to-date and a 416% rise in system unit sales compared to the previous year. The Spectrum segment also saw improved profitability, reporting adjusted EBITDA of $1.7 million, a $2 million year-over-year improvement. Despite challenges, INNOVATE remains optimistic, pointing to a robust DBM backlog of $1.1 billion and strategic efforts to optimize capital structure and explore strategic alternatives for non-cash flowing assets.INNOVATE Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
INNOVATE Corp Reports Mixed Q3 2024 Performance
Neutral
Nov 6, 2024
INNOVATE Corp. reported a mixed third quarter in 2024 with a notable decline in overall revenue by 35.5%, driven by timing and completion of projects in its Infrastructure segment. However, the Life Sciences segment saw remarkable growth, with R2 Technologies achieving a 416% increase in worldwide system unit sales compared to the previous year. Meanwhile, the Spectrum segment benefited from new network launches, resulting in higher revenue and improved financial performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.