Innovate Corp, trading under the ticker VATE on the NYSE, presents a complex picture for potential investors. With a profit margin showing a loss of 2% and a high probability of bankruptcy at 46.69%, the financial stability of the company is concerning. The company's total debt stands at a hefty $771.9 million, overshadowing its cash and equivalents of just $24.9 million. Despite these challenges, the stock's price-to-book ratio of 0.74X suggests it might be undervalued compared to its assets. Moreover, insiders own a significant 59.55% of shares, indicating confidence from those closest to the company. While the current ratio of 1.04X indicates just enough liquidity to cover short-term liabilities, the high beta of 2.07 points to potential volatility. Investors should weigh these factors carefully to determine if Innovate Corp represents a strategic buying opportunity amidst its financial hurdles. While some millennials might not be particularly interested in the machinery sector, Innovate Corp is worth a closer look. Let's explore why investors might still find value in this company. Is Innovate Corp's valuation justified? I'll provide insights into its valuation to help you decide whether investing in this stock makes sense.
We determine the current worth of Innovate Corp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Innovate Corp based exclusively on its
fundamental and basic
technical indicators. By analyzing Innovate Corp's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Innovate Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Innovate Corp. We calculate exposure to Innovate Corp's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Innovate Corp's related companies.
Innovate Corp Investment Alerts
Innovate investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Innovate Corp performance across your portfolios.Please check all
investment alerts for Innovate
Innovate Corp Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Innovate value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Innovate Corp competition to find
correlations between indicators driving the intrinsic value of Innovate.
Innovate Corp Gross Profit
Innovate Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Innovate Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Innovate Corp Gross Profit growth over the last 10 years. Please check Innovate Corp's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Innovate Corp
The latest price surge of Innovate Corp may raise some interest from shareholders as it is trading at a share price of
10.59 on very low momentum in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in
February. The stock standard deviation of daily returns for 90 days investing horizon is currently 12.98. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Innovate Corp partners.
Margins Breakdown
Innovate profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Innovate Corp itself as indicators of financial health and management effectiveness.
Please look more closely at the different varieties of Innovate Corp profit margins.
| Pretax Profit Margin | (0.0228) |
| Operating Profit Margin | 0.0194 |
| Net Profit Margin | (0.025) |
| Gross Profit Margin | 0.26 |
Innovate Corp PTB Ratio is decreasing over the last 8 years. Innovate Corp PTB Ratio is decreasing over the last 8 years. Timing can be everything when it comes to investing, and Innovate Corp (NYSE: VATE) might just be presenting a strategic opportunity. With a price-to-sales ratio of 0.11X, the stock appears undervalued compared to its peers, suggesting potential for growth. However, investors should be cautious of the company's financial health, as indicated by a net income loss of 35.2 million and a profit margin of negative 0.02%. The high beta of 2.07 also points to significant volatility, which could mean higher risk. Balancing these factors, Innovate Corp could be an intriguing option for those willing to embrace some risk for potential reward..
Will Innovate Corp latest surge continue?
Innovate Corp has recently captured investor interest with its impressive rise, but a projected shortfall of -6.81 raises concerns about whether this momentum can last. Although the stock has performed well, this figure hints at possible volatility ahead. Investors should consider the risks and question if the current rally can endure market pressures or if a more cautious stance is needed. Monitoring market trends and company fundamentals will be key in navigating Innovate Corp's future. The stock is showing above-average volatility, which can be a double-edged sword. In bear markets, this heightened volatility can lead to sharp price drops, prompting investors to rethink their portfolios. Using volatility indicators wisely can help traders assess Innovate Corp's risk in both rising and falling markets.
The Bottom Line
Although few other entities within the engineering & construction industry are still a little expensive, even after the recent corrections, Innovate Corp may offer a potential longer-term growth to shareholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither purchase nor exit any shares of Innovate Corp at this time. The Innovate Corp risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Innovate Corp.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Innovate Corp. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com