INNOVATE Corp (VATE) AI Stock Analysis

• Market Cap: $70.00M
• Dividend Yield: N/A
• Average Volume (3M): 34.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.86
• Revenue Growth: -24.94%
• EPS Growth: 51.41%
• Country: US
• Employees: 3,135
• Sector: Industrials
• Sector Strength: 83
• Industry: Engineering & Construction
• EPS (TTM): -1.89
• Shares Outstanding: 13,283,218
• 10 Day Avg. Volume: 19,461
• 30 Day Avg. Volume: 34,895
• PEG Ratio: -0.16
• Price to Book (P/B): 4.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.98
• Enterprise Value/Market Cap: 8.09
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.81
• Enterprise Value/Ebitda: 1.75
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $5.00 ▼(-6.72%Downside)

INNOVATE Corp's overall stock score reflects significant financial and technical challenges, including high leverage and bearish technical indicators. While recent earnings highlights and corporate events offer some positive developments, the broader financial health concerns dominate, resulting in a lower overall score.

INNOVATE Corp Business Overview & Revenue Model

Company Description

INNOVATE Corp., through its subsidiaries, operates in infrastructure, life sciences, and spectrum areas in the United States. It provides industrial construction, structural steel, and facility maintenance services for use in commercial, industrial, and infrastructure construction projects, such as buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, metal processing, refineries, pulp and paper mills, and power plants. The company also fabricates trusses and girders; and fabricates and erects water pipe, water storage tanks, tunnel liners, pressure vessels, strainers, filters, separators, and other customized products. In addition, it offers integrated solutions for digital engineering, modeling and detailing, construction, heavy equipment installation, and facility services; and steel and rebar detailing, and BIM modeling and management services, as well as equipment used in the oil, gas, petrochemical, and pipeline industries. Further, the company develops products for early osteoarthritis of the knee, and aesthetic and medical technologies for the skin. Additionally, it operates over-the-air broadcasting stations and Azteca America, a Spanish-language broadcast network. The company was formerly known as HC2 Holdings, Inc. and changed its name to INNOVATE Corp. in September 2021. The company was incorporated in 1994 and is headquartered in New York, New York.

How the Company Makes Money

INNOVATE Corp generates revenue through a combination of business operations and strategic investments. Its revenue streams primarily come from the sales of products and services in its technology and life sciences segments, as well as from infrastructure development and management. The company leverages its diverse portfolio to capitalize on synergies between its various business units, enhancing overall profitability. Significant partnerships with industry leaders and government entities also contribute to its earnings by providing additional opportunities and resources to scale its operations.

INNOVATE Corp Financial Statement Overview

Summary

INNOVATE Corp displays operational strengths with consistent gross margins, yet faces significant financial challenges due to negative equity and high leverage. While the company manages to generate positive operating cash flow, revenue declines and net losses highlight the need for strategic adjustments.

Income Statement

The company experiences negative net income with a negative net profit margin over the TTM period. However, the gross profit margin remains relatively stable, indicating some operational strength. The revenue has seen fluctuations, with recent declines, impacting overall profitability.

Balance Sheet

The company is highly leveraged with a negative stockholders' equity, posing a financial risk. The debt-to-equity ratio is not meaningful due to negative equity, and the overall equity ratio is concerning. These factors highlight a need for improved financial stability.

Cash Flow

The company has managed to generate positive operating cash flow in the TTM despite negative net income, showing operational cash generation capability. However, free cash flow growth fluctuates, indicating potential future cash constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.11B	1.42B	1.64B	1.21B	1.01B
Gross Profit	201.30M	208.80M	216.00M	221.40M	183.70M	167.30M
EBITDA	74.60M	-99.00M	69.80M	53.10M	16.00M	54.90M
Net Income	-41.70M	-35.80M	-37.60M	-40.80M	-79.80M	-46.40M
Balance Sheet
Total Assets	6.68B	891.10M	1.04B	1.15B	1.08B	6.74B
Cash, Cash Equivalents and Short-Term Investments	3.93B	48.80M	80.80M	80.40M	45.50M	4.69B
Total Debt	762.00M	719.20M	771.90M	714.40M	626.30M	561.50M
Total Liabilities	6.34B	1.03B	1.18B	1.18B	1.07B	6.14B
Stockholders Equity	233.10M	-180.40M	-149.10M	-103.70M	-65.50M	559.80M
Cash Flow
Free Cash Flow	2.30M	-9.90M	8.10M	-30.20M	2.90M	23.90M
Operating Cash Flow	20.40M	9.10M	26.50M	-9.50M	27.00M	41.70M
Investing Cash Flow	-14.50M	-13.90M	39.10M	-22.50M	-223.20M	162.30M
Financing Cash Flow	-11.20M	-26.50M	-65.30M	68.10M	4.30M	-204.60M

INNOVATE Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.36
• 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 VATE, the sentiment is Negative. The current price of 5.36 is below the 20-day moving average (MA) of 5.46, below the 50-day MA of 5.97, and below the 200-day MA of 6.52, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 44.12 is Neutral, neither overbought nor oversold. The STOCH value of 33.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VATE.

INNOVATE Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECG	71 Outperform	$3.15B	20.80	32.91%	―	11.92%	8.94%
ORN	70 Outperform	$359.55M	147.80	2.25%	―	15.58%	―
ESOA	70 Neutral	$158.65M	8.61	41.26%	1.26%	4.62%	81.73%
Sector *	65 Neutral	$10.56B	15.49	5.57%	1.96%	2.71%	-26.29%
SLND	57 Neutral	$205.19M	―	-53.62%	―	-20.63%	-611.23%
VATE	47 Neutral	$70.00M	―	17.11%	―	-24.94%	51.41%
SHIM	46 Neutral	$55.25M	―	-679.42%	―	-18.08%	-217.13%

INNOVATE Corp Corporate Events

INNOVATE Corp Annual Meeting Decisions Announced

INNOVATE Corp held its Annual Meeting of Stockholders on June 12, 2025, where key decisions were made regarding the company’s governance and executive compensation. Stockholders elected four directors to the board, approved the compensation of executive officers, decided to hold annual Say on Pay Votes, and ratified the appointment of BDO USA, P.C. as the independent accounting firm for the fiscal year ending December 31, 2025.

INNOVATE Corp’s DBM Global Announces Cash Dividend

On May 23, 2025, INNOVATE Corp. announced that its subsidiary, DBM Global Inc., will distribute a cash dividend of approximately $5.5 million on June 16, 2025. As the largest stockholder, INNOVATE expects to receive $5 million of the payout, highlighting its significant stake in DBM Global and the financial benefits it stands to gain.

INNOVATE Corp Secures $220M Credit Agreement

On May 20, 2025, DBM Global Inc., a subsidiary of INNOVATE Corp., entered into an amended and restated credit agreement providing $220 million in senior secured debt financing, consisting of an $85 million term loan and a $135 million revolving credit facility. This agreement, led by UMB Bank, aims to repay existing debt and enhance working capital, supporting DBMG’s growth and operational flexibility, with the facility maturing in 2030.

INNOVATE Corp Reports Q1 2025 Financial Results

INNOVATE Corp announced its first quarter 2025 results, reporting a consolidated revenue of $274.2 million, a 13% decrease from the previous year, primarily due to declines in its infrastructure segment. Despite the revenue drop, the company achieved significant milestones, including FDA approval for the MediBeacon TGFR system in its life sciences segment and the expansion of its infrastructure backlog to $1.4 billion. The company also anticipates new revenue opportunities in datacasting by year-end, indicating a strategic focus on growth across its operating segments.

INNOVATE Corp Reports 2024 Financial Results and Milestones

INNOVATE Corp. announced its fourth quarter and full year 2024 financial results, highlighting significant developments across its segments. The infrastructure segment reported a decrease in revenue due to project timing, while the life sciences segment achieved a major milestone with FDA approval for MediBeacon’s TGFR system. The broadcasting segment experienced double-digit revenue growth, driven by new network launches and expanded coverage. Despite a decline in overall revenue, the company reduced its total debt by $54.5 million, positioning itself favorably for future projects.