INNOVATE Corp. (HCHC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bowman Consulting Group Ltd.

Argan, Inc.

Tutor Perini Corp.

Matrix Service Co.

Orion Group Holdings, Inc.

MISTRAS Group, Inc.

Great Lakes Dredge & Dock Corp.

Southland Holdings, Inc.

INNOVATE Corp.

Concrete Pumping Holdings, Inc.

Golden Heaven Group Holdings Ltd.

Why is INNOVATE Corp. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 11.77 times
The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

The company has declared Negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At USD -15.3 MM has Fallen at -101.98%
NET PROFIT(Q) At USD -18.3 MM has Fallen at -99.46%
INVENTORY TURNOVER RATIO(HY) Lowest at 39.75 times

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -15.59%, its profits have risen by 9.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.59% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is INNOVATE Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

INNOVATE Corp.

-18.18%

-0.14

117.97%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-11.16%

EBIT Growth (5y)

20.20%

EBIT to Interest (avg)

0.30

Debt to EBITDA (avg)

11.77

Net Debt to Equity (avg)

-3.42

Sales to Capital Employed (avg)

2.37

Tax Ratio

28.61%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

29.75%

ROCE (avg)

4.00%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.45

EV to EBIT

19.94

EV to EBITDA

10.57

EV to Capital Employed

1.60

EV to Sales

0.68

PEG Ratio

Dividend Yield

ROCE (Latest)

8.02%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-25What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -15.3 MM has Fallen at -101.98%

NET PROFIT(Q)

At USD -18.3 MM has Fallen at -99.46%

INVENTORY TURNOVER RATIO(HY)

Lowest at 39.75 times

RAW MATERIAL COST(Y)

Grown by 13.64% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -317.3 %

NET SALES(Q)

At USD 242 MM has Fallen at -9.2%

INTEREST(Q)

Highest at USD 21.4 MM

Here's what is not working for INNOVATE Corp.

Pre-Tax Profit

At USD -15.3 MM has Fallen at -101.98%

over average net sales of the previous four periods of USD -7.57 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -18.3 MM has Fallen at -99.46%

over average net sales of the previous four periods of USD -9.17 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 39.75 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

At USD 242 MM has Fallen at -9.2%

over average net sales of the previous four periods of USD 266.52 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Interest

Highest at USD 21.4 MM

in the last five periods and Increased by 5.94% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at -317.3 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 13.64% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales