INNOVATE Corp (VATE) AI Stock Analysis

• Market Cap: $61.58M
• Dividend Yield: N/A
• Average Volume (3M): 23.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• 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: 41,447
• 30 Day Avg. Volume: 23,570
• 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: 12.64
• 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: 48 Neutral
• Price Target: $5.00 ▼(-0.99% Downside)

The overall stock score of 48 reflects significant financial challenges, including negative profitability and high leverage, which are the most impactful factors. While there are positive developments in revenue growth and strategic advancements, these are overshadowed by the company's financial instability and valuation concerns. Technical indicators also suggest caution, contributing to the overall cautious outlook.

Positive Factors

Strong Revenue Growth

The significant revenue growth indicates robust demand for INNOVATE Corp's offerings, suggesting strong market positioning and potential for continued expansion.

MediBeacon Regulatory Approval

Regulatory approval in China opens a vast market for MediBeacon's products, enhancing INNOVATE's global footprint and long-term growth prospects in healthcare.

DBM Global Backlog Increase

A substantial backlog increase for DBM Global indicates strong future revenue streams and operational stability, supporting sustained business growth.

Negative Factors

Increased Indebtedness

Rising debt levels can constrain financial flexibility and increase risk, potentially impacting INNOVATE's ability to invest in growth opportunities.

Gross and EBITDA Margin Compression

Margin compression suggests cost pressures and competitive challenges, which could affect profitability and require strategic adjustments to maintain margins.

Negative Profitability

Persistent negative profitability undermines financial health, necessitating improvements in cost management and revenue generation to achieve sustainable growth.

INNOVATE Corp Business Overview & Revenue Model

Company Description

INNOVATE Corp (VATE) is a forward-thinking technology company specializing in cutting-edge solutions across various sectors including artificial intelligence, renewable energy, and advanced manufacturing. The company focuses on developing innovative products and services that enhance efficiency and sustainability for businesses and consumers alike, leveraging its expertise in software development, hardware integration, and data analytics.

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, particularly with profitability and leverage. While revenue growth has improved, the company struggles with negative net income and high debt levels. Cash flow shows signs of recovery, but overall financial health is precarious. The company needs to focus on improving profitability and reducing leverage to enhance financial stability.

Income Statement

INNOVATE Corp's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 10.54%, indicating a recovery from previous declines. However, the company struggles with profitability, as evidenced by a negative net profit margin of -7.63% and a low EBIT margin of 1.90%. The gross profit margin is moderate at 18.66%, suggesting some efficiency in cost management, but overall profitability remains a concern.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative debt-to-equity ratio of -3.07, indicating high debt levels relative to negative equity. This poses a risk to financial stability. The return on equity is positive at 40.14%, but this is due to negative equity, which distorts the metric. The equity ratio is negative, reflecting the company's financial distress and potential solvency issues.

Cash Flow

Cash flow analysis shows improvement, with a substantial free cash flow growth rate of 235.71% in the TTM period. The operating cash flow to net income ratio is low at 2.65%, indicating limited cash generation relative to net income. However, the free cash flow to net income ratio is positive at 9.09%, suggesting some ability to generate cash despite net losses. Overall, cash flow management shows signs of recovery but remains a challenge.

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	65.40M	23.30M
Operating Cash Flow	86.90M	9.10M	26.50M	-9.50M	89.50M	41.10M
Investing Cash Flow	-25.00M	-13.90M	23.20M	-22.50M	-299.20M	99.20M
Financing Cash Flow	-77.00M	-26.50M	-49.40M	68.10M	17.80M	-141.60M

INNOVATE Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.05
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 5.05 is above the 20-day moving average (MA) of 4.88, above the 50-day MA of 5.04, and below the 200-day MA of 5.65, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 50.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	56 Neutral	$140.53M	367.98	0.64%	1.07%	16.80%	-98.32%
VATE	48 Neutral	$61.58M	-0.97	―	―	-10.69%	-81.71%
SHIM	45 Neutral	$97.78M	-1.58	―	―	-3.64%	53.82%
SUNE	44 Neutral	$3.78M	>-0.01	-116.57%	―	-1.41%	98.90%
MSW	38 Underperform	$13.36M	-19.93	-578.91%	―	23.25%	-343.35%

INNOVATE Corp Corporate Events

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.

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.

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.