INNOVATE Corp (VATE) AI Stock Analysis

• Market Cap: $70.19M
• Dividend Yield: N/A
• Average Volume (3M): 34.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: -10.69%
• EPS Growth: -81.71%
• Country: US
• Employees: 3,135
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.71
• Shares Outstanding: 13,655,062
• 10 Day Avg. Volume: 21,850
• 30 Day Avg. Volume: 34,646
• PEG Ratio: 0.04
• Price to Book (P/B): -0.36
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -6.54
• Enterprise Value/Market Cap: 11.09
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 4.16
• Enterprise Value/Ebitda: 17.23
• 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: 50 Neutral
• Price Target: $5.00 ▼(-6.37% Downside)

INNOVATE Corp's overall stock score reflects significant financial challenges, particularly with profitability and leverage, which weigh heavily on the score. While there are positive signals from the earnings call regarding revenue growth and strategic advancements, the technical analysis and valuation metrics indicate caution. The company's financial health remains a concern, necessitating improvements in profitability and debt management to enhance stability.

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 multiple streams, primarily by selling proprietary software solutions and hardware products designed for industrial automation and energy management. The company also offers consulting services to help clients implement its technologies and optimize their operations. Additionally, INNOVATE Corp has established significant partnerships with key players in the tech and energy sectors, enabling joint ventures and collaborative projects that further drive income. Revenue is supplemented by licensing agreements and maintenance contracts for ongoing support and updates, ensuring a steady cash flow from existing customers.

INNOVATE Corp Financial Statement Overview

Summary

INNOVATE Corp faces significant financial challenges, including declining revenues, persistent losses, and high leverage. While there are some positive aspects, such as stable gross profit margins and positive cash flow ratios, the overall financial health is concerning. The company needs to address operational inefficiencies and reduce reliance on debt to improve its financial position and ensure long-term sustainability.

Income Statement

INNOVATE Corp's income statement reveals challenges with profitability and revenue growth. The TTM data shows a negative net profit margin of -3.91% and a declining revenue growth rate of -6.67%. Gross profit margin remains relatively stable at 18.88%, but the company struggles with negative EBIT and EBITDA margins, indicating operational inefficiencies. The overall trend shows declining revenues and persistent losses, which are concerning for future profitability.

Balance Sheet

The balance sheet highlights significant financial leverage with a high debt-to-equity ratio of 33.99 in the TTM period. The company's equity is minimal, posing a risk of financial instability. Return on equity is positive at 37.49%, but this is due to the low equity base rather than strong performance. The equity ratio is weak, indicating heavy reliance on debt financing, which could be risky in volatile market conditions.

Cash Flow

Cash flow analysis shows mixed results. Operating cash flow is positive, but free cash flow growth is negative at -8.70% in the TTM period. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to net losses. However, the free cash flow to net income ratio is positive, indicating some ability to cover net losses with free cash flow. Overall, cash flow management needs improvement to support financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10B	1.11B	1.42B	1.64B	1.21B	716.90M
Gross Profit	187.20M	208.80M	216.00M	221.40M	183.70M	128.40M
EBITDA	45.20M	72.90M	63.10M	62.80M	31.80M	54.90M
Net Income	-84.70M	-34.60M	-35.20M	-35.90M	-227.50M	-92.00M
Balance Sheet
Total Assets	913.20M	891.10M	1.04B	1.15B	1.08B	6.72B
Cash, Cash Equivalents and Short-Term Investments	35.50M	48.80M	80.80M	80.40M	45.50M	45.30M
Total Debt	723.70M	719.20M	771.90M	785.30M	684.80M	604.30M
Total Liabilities	1.12B	1.05B	1.20B	1.18B	1.09B	6.11B
Stockholders Equity	-224.20M	-180.40M	-165.50M	-103.70M	-84.30M	570.20M
Cash Flow
Free Cash Flow	61.10M	-9.90M	8.10M	-30.20M	2.90M	23.30M
Operating Cash Flow	86.90M	9.10M	26.50M	-9.50M	27.00M	41.10M
Investing Cash Flow	-25.00M	-13.90M	23.20M	-22.50M	-223.20M	99.20M
Financing Cash Flow	-77.00M	-26.50M	-49.40M	68.10M	4.30M	-141.60M

INNOVATE Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 5.34 is below the 20-day moving average (MA) of 5.34, above the 50-day MA of 4.99, and below the 200-day MA of 6.16, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 34.73 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ESOA	60 Neutral	$147.69M	51.78	5.24%	1.01%	9.52%	-88.22%
VATE	50 Neutral	$70.19M	―	―	―	-10.69%	-81.71%
SUNE	44 Neutral	$4.56M	―	-116.57%	―	-1.41%	98.90%
SHIM	41 Neutral	$80.94M	―	―	―	-3.64%	53.82%
MSW	40 Neutral	$22.36M	―	-578.91%	―	23.25%	-343.35%

INNOVATE Corp Corporate Events

INNOVATE Corp’s Earnings Call Reveals Strong Growth Amid Challenges

The recent earnings call of INNOVATE Corp painted a picture of robust revenue growth and strategic progress across various segments, despite facing some challenges. The company reported significant backlog increases and regulatory approvals, although it also dealt with margin compression, declines in Spectrum revenue, and increased indebtedness.

INNOVATE Corp. Reports Revenue Growth Amid Challenges

INNOVATE Corp. is a diversified holding company with a portfolio of subsidiaries in infrastructure, life sciences, and broadcasting, aiming to generate long-term sustainable cash flow and attractive returns. In its latest earnings report for the quarter ending September 30, 2025, INNOVATE Corp. reported a revenue increase to $347.1 million from $242.2 million in the same quarter last year. Despite this growth in revenue, the company recorded a net loss of $9.6 million, an improvement from the $16.2 million loss in the previous year. The company’s infrastructure segment remains the largest contributor to revenue, with significant projects in commercial, industrial, and transportation markets. However, the company faces challenges with upcoming debt maturities and cross-default provisions, raising concerns about its ability to continue as a going concern. Management is exploring asset sales and capital raising to address these issues, but there is no assurance of success.

INNOVATE Corp Reports Strong Q3 2025 Results

INNOVATE Corp announced its third-quarter 2025 results, highlighting significant achievements across its business segments. DBM Global reported strong revenue growth and an increased backlog, while MediBeacon received regulatory approval to sell its Transdermal GFR System in China, expanding its market reach. The Spectrum segment is showing signs of recovery in advertising sales and is exploring new datacasting opportunities. The company also completed refinancing transactions to extend debt maturities and initiated strategic processes to comply with milestone covenants, impacting its operations and strategic positioning.

The most recent analyst rating on (VATE) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on INNOVATE Corp stock, see the VATE Stock Forecast page.

INNOVATE Corp Gains China Approval for GFR System

On October 21, 2025, INNOVATE Corp. announced that MediBeacon Inc. received regulatory approval from China’s National Medical Products Administration to sell the Transdermal GFR System, including the Lumitrace injection, in China. This system allows for point-of-care assessment of kidney function, addressing the needs of patients with chronic kidney disease, which affects 11% of China’s population. The approval marks a significant step in MediBeacon’s global expansion, providing an innovative solution to improve kidney disease management and patient outcomes.

The most recent analyst rating on (VATE) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on INNOVATE Corp stock, see the VATE Stock Forecast page.

INNOVATE Corp Subsidiary Announces $8.8M Dividend

On October 16, 2025, INNOVATE Corp. announced that its subsidiary, DBM Global Inc., will distribute a cash dividend of approximately $8.8 million on November 10, 2025, with INNOVATE set to receive about $8 million as the largest stockholder. This dividend reflects DBM Global’s robust financial performance and strengthens INNOVATE’s position in the steel construction industry, although individual INNOVATE stockholders are not eligible for the dividend.

The most recent analyst rating on (VATE) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on INNOVATE Corp stock, see the VATE Stock Forecast page.