Inovalis REIT (INO.UN) AI Stock Analysis

• Market Cap: C$30.73M
• Dividend Yield: 7.64%
• Average Volume (3M): 18.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -32.26%
• EPS Growth: -125.21%
• Country: CA
• Employees: 300
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Office
• EPS (TTM): -2.42
• Shares Outstanding: 33,206,180
• 10 Day Avg. Volume: 14,174
• 30 Day Avg. Volume: 18,373
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.59
• Price to Cash Flow (P/CF): -70.40
• P/FCF Ratio: 3.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Inovalis REIT's overall stock score reflects its challenging financial performance, marked by declining revenues and high leverage. While technical analysis indicates some short-term momentum, the negative P/E ratio underscores profitability issues, partially offset by a high dividend yield. The stock requires careful consideration of both risks and income potential.

Inovalis REIT Business Overview & Revenue Model

Company Description

Inovalis Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning office properties primarily located in France and Germany but also opportunistically in other European countries where assets meet the REIT's investment criteria.

How the Company Makes Money

Inovalis REIT generates revenue primarily through the leasing of its office properties to a variety of tenants, which include corporations and government entities. The company earns rental income from long-term lease agreements, ensuring a steady stream of cash flow. In addition, Inovalis REIT engages in strategic acquisitions and property enhancements to increase the value of its portfolio, which can also result in higher rental income over time. The REIT's revenue is further supported by its relationship with Inovalis SA, which brings expertise in asset management and access to off-market deals, enabling optimized property management and investment opportunities. Furthermore, the REIT may occasionally generate income through the sale of properties, realizing gains from property appreciation.

Inovalis REIT Financial Statement Overview

Summary

Inovalis REIT is facing financial difficulties, with declining revenues and profitability, coupled with high leverage and cash flow challenges. The company needs strategic interventions to improve profitability and strengthen its financial position to ensure long-term sustainability.

Income Statement

Inovalis REIT faced challenges as evidenced by declining revenue from TTM (Trailing-Twelve-Months) compared to previous years. The net profit margin is negative, indicating a loss, while the gross profit margin is moderate. EBIT and EBITDA margins are showing weak profitability, impacting overall financial health.

Balance Sheet

The company maintains a moderate equity ratio, providing some financial stability. However, the debt-to-equity ratio is relatively high, suggesting significant leverage. Negative ROE indicates struggles in generating returns for shareholders, highlighting potential risks.

Cash Flow

Negative operating and free cash flow in the TTM period highlight liquidity issues. The cash flow from operations is insufficient to cover the net income, raising concerns about the company's ability to fund operations without external financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
24.72M	33.57M	31.14M	34.46M	35.77M	33.94M
	Gross Profit
12.57M	23.22M	21.63M	24.19M	26.60M	22.99M
	EBIT
4.76M	2.85M	10.02M	5.02M	7.45M	44.89M
	EBITDA
584.00K	-21.80M	16.23M	35.87M	17.54M	45.90M
	Net Income Common Stockholders
-78.71M	-29.69M	-36.98M	30.33M	18.20M	36.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.11M	12.61M	45.18M	76.63M	80.38M	83.41M
	Total Assets
619.34M	484.06M	561.11M	587.25M	712.09M	710.21M
	Total Debt
270.95M	219.45M	243.09M	207.12M	288.66M	308.64M
	Net Debt
251.84M	206.96M	197.92M	130.49M	208.28M	225.23M
	Total Liabilities
327.26M	236.69M	272.93M	241.16M	335.43M	377.06M
	Stockholders Equity
291.56M	246.42M	286.98M	344.79M	375.24M	331.94M
Cash Flow		Free Cash Flow
-4.94M	3.97M	21.43M	-112.81M	6.04M	7.53M
	Operating Cash Flow
-4.94M	3.97M	21.43M	-7.92M	-2.67M	23.49M
	Investing Cash Flow
2.76M	2.15M	-60.47M	106.61M	33.00M	66.67M
	Financing Cash Flow
-11.41M	-39.08M	9.70M	-97.54M	-37.17M	-25.75M

Inovalis REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.91
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:INO.UN, the sentiment is Positive. The current price of 0.91 is above the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.93, and below the 200-day MA of 0.99, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 28.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:INO.UN.

Inovalis REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRU.UN	76 Outperform	C$4.31B	19.03	4.50%	7.26%	9.46%	-42.77%
Sector *	61 Neutral	$4.72B	17.64	-3.07%	10.89%	5.99%	-21.86%
INO.UN	51 Neutral	C$30.73M	―	-32.19%	7.64%	-32.26%	-125.21%