INNOVATE Corp (VATE) AI Stock Analysis

• Market Cap: $69.87M
• Dividend Yield: N/A
• Average Volume (3M): 16.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.85
• Revenue Growth: -24.94%
• EPS Growth: 51.41%
• Country: US
• Employees: 3,135
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): -1.89
• Shares Outstanding: 13,283,218
• 10 Day Avg. Volume: 12,031
• 30 Day Avg. Volume: 16,664
• PEG Ratio: -0.15
• Price to Book (P/B): 4.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.72
• Enterprise Value/Market Cap: 8.03
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.79
• Enterprise Value/Ebitda: 1.74
• 1Y Price Target: $6.00
• Price Target Upside: 7.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $5.50 ▼(-1.08%Downside)

The stock score is primarily impacted by financial challenges, including high leverage and negative equity. While there are operational strengths and positive strategic initiatives, the overall financial health and valuation concerns weigh heavily. Technical indicators and earnings call highlights provide mixed signals, with some positive corporate events offering potential upside.

INNOVATE Corp Business Overview & Revenue Model

Company Description

INNOVATE Corp (VATE) is a diversified holding company operating primarily in the infrastructure, life sciences, and spectrum sectors. Through its subsidiaries, the company focuses on delivering essential services and innovative solutions across its core areas. INNOVATE Corp aims to drive growth and value creation through strategic investments and operational excellence in its diverse portfolio.

How the Company Makes Money

INNOVATE Corp generates revenue through a multi-faceted approach, leveraging its diversified holdings. In the infrastructure sector, the company earns income from construction services and infrastructure development projects. In life sciences, revenue is derived from providing laboratory services and developing biopharmaceutical products. The spectrum sector contributes through leasing and managing wireless spectrum assets. The company also benefits from strategic partnerships and investments, which enhance its ability to create additional revenue streams and operational synergies across its sectors.

INNOVATE Corp Financial Statement Overview

Summary

INNOVATE Corp shows operational strengths with stable gross margins but faces significant challenges due to negative equity and high leverage. Cash flow management is positive, yet 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.42B	1.64B	1.21B	1.01B
Gross Profit	208.80M	216.00M	221.40M	183.70M	167.30M
EBITDA	-99.00M	69.80M	53.10M	16.00M	54.90M
Net Income	-35.80M	-37.60M	-40.80M	-79.80M	-46.40M
Balance Sheet
Total Assets	891.10M	1.04B	1.15B	1.08B	6.74B
Cash, Cash Equivalents and Short-Term Investments	48.80M	80.80M	80.40M	45.50M	4.69B
Total Debt	719.20M	771.90M	714.40M	626.30M	561.50M
Total Liabilities	1.03B	1.18B	1.18B	1.07B	6.14B
Stockholders Equity	-180.40M	-149.10M	-103.70M	-65.50M	559.80M
Cash Flow
Free Cash Flow	-9.90M	8.10M	-30.20M	2.90M	23.90M
Operating Cash Flow	9.10M	26.50M	-9.50M	27.00M	41.70M
Investing Cash Flow	-13.90M	39.10M	-22.50M	-223.20M	162.30M
Financing Cash Flow	-26.50M	-65.30M	68.10M	4.30M	-204.60M

INNOVATE Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.56
• 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 Neutral. The current price of 5.56 is above the 20-day moving average (MA) of 5.37, below the 50-day MA of 5.75, and below the 200-day MA of 6.62, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 51.17 is Neutral, neither overbought nor oversold. The STOCH value of 35.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VATE.

INNOVATE Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESOA	73 Outperform	$164.84M	8.95	41.26%	1.21%	4.62%	81.73%
ECG	72 Outperform	$3.53B	23.24	32.91%	―	11.92%	8.94%
ORN	70 Outperform	$331.46M	140.95	2.25%	―	15.58%	―
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%
SLND	50 Neutral	$244.06M	―	-53.62%	―	-20.63%	-611.23%
VATE	49 Neutral	$69.87M	―	17.11%	―	-24.94%	51.41%
SHIM	47 Neutral	$71.96M	―	-679.42%	―	-18.08%	-217.13%

INNOVATE Corp Corporate Events

INNOVATE Corp Announces Debt Refinancing Plans

On July 17, 2025, INNOVATE Corp. announced plans to refinance its debt through a series of transactions, including exchanging convertible senior notes and senior secured notes, extending its revolving credit agreement, and amending other financial agreements. These actions aim to extend debt maturities and improve financial flexibility, potentially enhancing the company’s market position and stability.

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.