INNOVATE Corp. Fundamental Analysis
INNOVATE Corp. (VATE) shows strong financial fundamentals with a PE ratio of -4.06, profit margin of -3.96%, and ROE of 22.84%. The company generates $1.4B in annual revenue with strong year-over-year growth of 12.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 97.6/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze VATE's fundamental strength across five key dimensions:
Efficiency Score
WeakVATE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVATE trades at attractive valuation levels.
Growth Score
ModerateVATE shows steady but slowing expansion.
Financial Health Score
ModerateVATE shows balanced financial health with some risks.
Profitability Score
ModerateVATE maintains healthy but balanced margins.
Key Financial Metrics
Is VATE Expensive or Cheap?
P/E Ratio
VATE trades at -4.06 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VATE's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values INNOVATE Corp. at -0.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.06 times EBITDA. This is generally considered low.
How Well Does VATE Make Money?
Net Profit Margin
For every $100 in sales, INNOVATE Corp. keeps $-3.96 as profit after all expenses.
Operating Margin
Core operations generate 2.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.84 in profit for every $100 of shareholder equity.
ROA
INNOVATE Corp. generates $-5.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
INNOVATE Corp. produces operating cash flow of $210.79M, showing steady but balanced cash generation.
Free Cash Flow
INNOVATE Corp. generates strong free cash flow of $179.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13.14 in free cash annually.
FCF Yield
VATE converts 80.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-4.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
-0.06
vs 25 benchmark
ROCE
Return on capital employed
-0.46
vs 25 benchmark
How VATE Stacks Against Its Sector Peers
| Metric | VATE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -4.06 | 25.78 | Better (Cheaper) |
| ROE | 22.84% | 1252.00% | Weak |
| Net Margin | -3.96% | -38726.00% (disorted) | Weak |
| Debt/Equity | -3.10 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 0.40 | 10.00 | Weak Liquidity |
| ROA | -5.65% | -1485904.00% (disorted) | Weak |
VATE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews INNOVATE Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-33.86%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
74.93%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
35.74%
Industry Style: Cyclical, Value, Infrastructure
High Growth