InnovAge Holding Corp.
InnovAge Holding Corp. Fundamental Analysis
InnovAge Holding Corp. (INNV) shows moderate financial fundamentals with a PE ratio of -293.34, profit margin of -0.45%, and ROE of -1.69%. The company generates $0.9B in annual revenue with strong year-over-year growth of 11.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze INNV's fundamental strength across five key dimensions:
Efficiency Score
WeakINNV struggles to generate sufficient returns from assets.
Valuation Score
ExcellentINNV trades at attractive valuation levels.
Growth Score
ModerateINNV shows steady but slowing expansion.
Financial Health Score
ExcellentINNV maintains a strong and stable balance sheet.
Profitability Score
WeakINNV struggles to sustain strong margins.
Key Financial Metrics
Is INNV Expensive or Cheap?
P/E Ratio
INNV trades at -293.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, INNV's PEG of -5.87 indicates potential undervaluation.
Price to Book
The market values InnovAge Holding Corp. at 4.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 44.83 times EBITDA. This signals the market has high growth expectations.
How Well Does INNV Make Money?
Net Profit Margin
For every $100 in sales, InnovAge Holding Corp. keeps $-0.45 as profit after all expenses.
Operating Margin
Core operations generate 0.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.69 in profit for every $100 of shareholder equity.
ROA
InnovAge Holding Corp. generates $-0.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
InnovAge Holding Corp. generates limited operating cash flow of $56.67M, signaling weaker underlying cash strength.
Free Cash Flow
InnovAge Holding Corp. produces free cash flow of $45.99M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.34 in free cash annually.
FCF Yield
INNV converts 3.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-293.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How INNV Stacks Against Its Sector Peers
| Metric | INNV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -293.34 | 29.45 | Better (Cheaper) |
| ROE | -1.69% | 779.00% | Weak |
| Net Margin | -0.45% | -24936.00% (disorted) | Weak |
| Debt/Equity | 0.46 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.26 | 4.65 | Neutral |
| ROA | -0.78% | -19344.00% (disorted) | Weak |
INNV outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews InnovAge Holding Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
48.07%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-213.48%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-26.23%
Industry Style: Defensive, Growth, Innovation
Declining