Education
About Us
Working with TipRanks
Follow Us
INNOVATE Corp (VATE)
NYSE:VATE
Top Page
INNOVATE Corp
(NYSE:VATE)
50Neutral
INNOVATE Corp (VATE) vs. S&P 500 (SPY)
Market Cap
$79.83M
Dividend YieldN/A
Average Volume (3M)32.74K
Price to Earnings (P/E)―
Beta (1Y)1.82
Revenue Growth-24.94%
EPS Growth51.41%
CountryUS
Employees3,135
SectorIndustrials
Sector Strength91
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-1.89
Shares Outstanding13,283,218
10 Day Avg. Volume30,978
30 Day Avg. Volume32,740
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)-0.51
Price to Sales (P/S)0.00
P/FCF Ratio-9.51
Enterprise Value/Market Cap9.58
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit3.82
Enterprise Value/Ebitda2.44
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., 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 MoneyINNOVATE 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 is experiencing significant financial challenges characterized by declining revenues, persistent losses, high leverage, and negative equity. The company's ability to generate positive cash flow from operations is a slight positive, but overall, the financial health is weak with considerable risks, particularly in its balance sheet stability and profitability.Income Statement
INNOVATE Corp has experienced a declining revenue trend over the years, with a significant drop from 2020 to 2024. The net profit margin is negative, reflecting continual losses. EBIT and EBITDA margins are also negative in the most recent year, indicating operating challenges. These factors suggest financial instability and poor profitability.30
Negative
Balance Sheet
The company is highly leveraged with a debt-to-equity ratio that is unfavorable due to negative equity. The consistently negative stockholders' equity raises concerns about financial solvency and long-term viability. Additionally, the return on equity is not meaningful due to negative equity, indicating poor returns for shareholders.25
Negative
Cash Flow
INNOVATE Corp shows inconsistent cash flow performance, with a negative free cash flow in the most recent year. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations. However, the free cash flow to net income ratio indicates challenges in maintaining liquidity and operational efficiency.40
Negative
| 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 | EBIT |
| -9.00M | 29.20M | 13.40M | -9.10M | 77.70M | EBITDA |
| -99.00M | 69.80M | 53.10M | 16.00M | 54.90M | Net Income Common Stockholders |
| -35.80M | -37.60M | -40.80M | -79.80M | -46.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 48.80M | 80.80M | 80.40M | 45.50M | 4.69B | Total Assets |
| 891.10M | 1.04B | 1.15B | 1.08B | 6.74B | Total Debt |
| 719.20M | 771.90M | 714.40M | 626.30M | 561.50M | Net Debt |
| 670.40M | 691.10M | 634.00M | 580.80M | 329.20M | 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
Negative
6.01
Price Trends
6.91
Negative
7.87
Negative
6.36
Negative
Market Momentum
-0.18
Negative
43.10
Neutral
14.27
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 6.01 is below the 20-day moving average (MA) of 6.36, below the 50-day MA of 6.91, and below the 200-day MA of 6.36, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 14.27 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $140.43M | 7.63 | 41.26% | 0.71% | 4.62% | 81.73% | |
71 Outperform | $3.03B | 19.97 | 32.91% | ― | 11.92% | 8.94% | |
70 Outperform | $342.54M | 141.27 | 2.25% | ― | 15.58% | ― | |
64 Neutral | $4.43B | 12.01 | 5.16% | 249.23% | 4.03% | -11.73% | |
50 Neutral | $79.83M | ― | 17.11% | ― | -24.94% | 51.41% | |
49 Neutral | $205.19M | ― | -53.62% | ― | -20.63% | -611.23% | |
33 Underperform | $57.83M | ― | -679.42% | ― | -18.08% | -217.13% |
* Industrials Sector Average
Performance Comparison
VATE
INNOVATE Corp
6.01
-1.33
-18.12%
ESOA
Energy Services of America
8.40
2.20
35.48%
ORN
Orion Group Holdings
8.66
-0.02
-0.23%
SLND
Southland Holdings
3.80
-1.05
-21.65%
SHIM
Shimmick Corporation
1.68
-0.01
-0.59%
ECG
Everus Construction Group, Inc.
59.48
9.48
18.96%
INNOVATE Corp Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -3.69%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong performance and strategic achievements in the Life Sciences and Broadcasting segments, but was offset by significant revenue declines and increased debt levels affecting the overall financial health.Q1-2025 Updates
Positive Updates
Strong Segment Performance in Infrastructure and Life Sciences
DBM Global's revenues reached $264.9 million with adjusted EBITDA of $16.7 million, showing gross margin improvement by 110 basis points to 15.6%. Life Sciences revenue increased 210% to $3.1 million, driven by R2's performance with unit sales surging 163% year-over-year.
Significant Achievements in Life Sciences
MediBeacon received FDA approval for its transdermal GFR system and the National Medical Products Administration in China also approved it. The TGFR system is set for commercial sale in Q4 2025.
R2's Impressive Growth
R2 tripled its year-over-year revenue to $3.1 million in Q1 2025 with a 109% increase in North America and global unit sales up 163%. Social media engagement and website users also saw tremendous growth.
Strategic Developments in Broadcasting
Spectrum signed a contract with Marathon Ventures for new networks and filed a petition with the FCC for 5G broadcast technology, indicating forward-thinking strategies in the broadcasting segment.
Negative Updates
Overall Revenue and Profit Decline
Consolidated total revenue decreased by 13% to $274.2 million, and the net loss increased to $24.8 million compared to the previous year. Adjusted EBITDA declined from $12.8 million to $7.2 million.
Challenges in Infrastructure Segment
Infrastructure revenue decreased by 14% due to the timing and size of projects, and adjusted EBITDA dropped from $18.3 million to $16.7 million.
Increased Debt Levels
Total principal outstanding indebtedness rose to $672 million, driven by increased debt in Infrastructure and R2, indicating potential financial strain.
Decreased Cash Position
Cash and cash equivalents fell to $33.3 million from $48.8 million at the end of 2024, reflecting a decrease in liquidity.
Company Guidance
During INNOVATE's Q1 2025 earnings call, the company reported consolidated revenues of $274.2 million and an adjusted EBITDA of $7.2 million. The Infrastructure segment, led by DBM Global, achieved revenues of $264.9 million and an adjusted EBITDA of $16.7 million, with a notable gross margin improvement of 110 basis points year-over-year to 15.6%. The Life Sciences segment saw revenues increase by 210% to $3.1 million, driven by R2's performance, which also showed a significant gross worldwide system unit sales surge of 163% over the previous year. Spectrum's revenues were $6.2 million with an adjusted EBITDA of $1.4 million, reflecting stable results year-over-year. The company also noted a reported backlog of $1.4 billion for DBM Global, with ongoing efforts to mitigate potential impacts from tariffs. INNOVATE ended the quarter with $33.3 million in cash and cash equivalents and a total outstanding indebtedness of $672 million.INNOVATE Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
INNOVATE Corp Reports Q1 2025 Financial Results
Neutral
May 6, 2025
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.
Spark’s Take on VATE Stock
According to Spark, TipRanks’ AI Analyst, VATE is a Neutral.
INNOVATE Corp faces significant financial challenges with declining revenues and high leverage. While there are positive strides in certain segments, such as FDA approval and growth in specific areas, these are overshadowed by broader financial instability and operational inefficiencies. The mixed technical indicators and weak valuation metrics further contribute to a cautious outlook.
To see Spark’s full report on VATE stock, click here.
Business Operations and StrategyFinancial Disclosures
INNOVATE Corp Reports 2024 Financial Results and Milestones
Neutral
Mar 31, 2025
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.
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.