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VATE

INNOVATE NYSE:VATE Stock Report

Last Price

US$1.63

Market Cap

US$127.9m

7D

-9.4%

1Y

-56.1%

Updated

10 Aug, 2022

Data

Company Financials
VATE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health0/6
Dividends0/6

VATE Stock Overview

INNOVATE Corp., through its subsidiaries, operates in infrastructure, life sciences, and spectrum areas in the United States.

INNOVATE Competitors

Price History & Performance

Summary of all time highs, changes and price drops for INNOVATE
Historical stock prices
Current Share PriceUS$1.63
52 Week HighUS$4.83
52 Week LowUS$1.54
Beta2.01
1 Month Change-5.78%
3 Month Change-31.22%
1 Year Change-56.07%
3 Year Change-23.83%
5 Year Change-65.17%
Change since IPO-59.25%

Recent News & Updates

Aug 03

Innovate GAAP EPS of -$0.18, revenue of $392.2M

Innovate press release (NYSE:VATE): Q2 GAAP EPS of -$0.18. Revenue of $392.2M (+60.9% Y/Y). Total Adjusted EBITDA was $12.1M, compared to Total Adjusted EBITDA of $6.5M for the prior year quarter.

Shareholder Returns

VATEUS ConstructionUS Market
7D-9.4%3.8%1.2%
1Y-56.1%11.0%-11.6%

Return vs Industry: VATE underperformed the US Construction industry which returned 9.2% over the past year.

Return vs Market: VATE underperformed the US Market which returned -13.5% over the past year.

Price Volatility

Is VATE's price volatile compared to industry and market?
VATE volatility
VATE Average Weekly Movement8.9%
Construction Industry Average Movement6.1%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.2%

Stable Share Price: VATE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: VATE's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19943,902Wayne Barrhttps://www.innovatecorp.com

INNOVATE 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.

INNOVATE Fundamentals Summary

How do INNOVATE's earnings and revenue compare to its market cap?
VATE fundamental statistics
Market CapUS$127.86m
Earnings (TTM)-US$45.10m
Revenue (TTM)US$1.59b

0.1x

P/S Ratio

-2.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VATE income statement (TTM)
RevenueUS$1.59b
Cost of RevenueUS$1.38b
Gross ProfitUS$216.90m
Other ExpensesUS$262.00m
Earnings-US$45.10m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.57
Gross Margin13.60%
Net Profit Margin-2.83%
Debt/Equity Ratio-3,489.5%

How did VATE perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is VATE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VATE?

Other financial metrics that can be useful for relative valuation.

VATE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA16.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does VATE's PS Ratio compare to its peers?

VATE PS Ratio vs Peers
The above table shows the PS ratio for VATE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.4x
BWMN Bowman Consulting Group
1.1x18.2%US$191.5m
QTEK QualTek Services
0.05x11.9%US$71.9m
ORN Orion Group Holdings
0.1x2.4%US$81.9m
MTRX Matrix Service
0.2x11.1%US$147.1m
VATE INNOVATE
0.08xn/aUS$127.9m

Price-To-Sales vs Peers: VATE is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.4x).


Price to Earnings Ratio vs Industry

How does VATE's PE Ratio compare vs other companies in the US Construction Industry?

Price-To-Sales vs Industry: VATE is good value based on its Price-To-Sales Ratio (0.1x) compared to the US Construction industry average (0.8x)


Price to Sales Ratio vs Fair Ratio

What is VATE's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VATE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.08x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate VATE's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of VATE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate VATE's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate VATE's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

  • Take a look at our analysis of VATE's management and see if the CEO's compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don't know where to start, we recommend reading through INNOVATE regulatory filings.

Future Growth

How is INNOVATE forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


28.9%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as INNOVATE has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Take a look at our analysis of VATE’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • INNOVATE competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has INNOVATE performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VATE is currently unprofitable.

Growing Profit Margin: VATE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VATE is unprofitable, and losses have increased over the past 5 years at a rate of 19.6% per year.

Accelerating Growth: Unable to compare VATE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VATE is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (13.1%).


Return on Equity

High ROE: VATE's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Discover strong past performing companies

Financial Health

How is INNOVATE's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: VATE has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: VATE has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: VATE has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: VATE's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VATE has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: VATE has less than a year of cash runway if free cash flow continues to reduce at historical rates of 9.9% each year


Discover healthy companies

Dividend

What is INNOVATE current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate VATE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VATE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VATE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VATE's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VATE has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Wayne Barr (58 yo)

2.17yrs

Tenure

US$1,375,000

Compensation

Mr. Wayne Barr, Jr., serves as the Chief Executive Officer at INNOVATE Corp. (formerly known as HC2 Holdings, Inc.) since November 25, 2020 and its President and served as its Interim Chief Executive Offic...


CEO Compensation Analysis

Compensation vs Market: Wayne's total compensation ($USD1.38M) is above average for companies of similar size in the US market ($USD770.24K).

Compensation vs Earnings: Wayne's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: VATE's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: VATE's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VATE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

INNOVATE Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: INNOVATE Corp.
  • Ticker: VATE
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: US$127.858m
  • Shares outstanding: 78.44m
  • Website: https://www.innovatecorp.com

Number of Employees


Location

  • INNOVATE Corp.
  • 295 Madison Avenue
  • 12th Floor
  • New York
  • New York
  • 10017
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.