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Inovalis REIT Un (TSE:INO.UN)
TSX:INO.UN
Canadian Market

Inovalis REIT (INO.UN) AI Stock Analysis

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Inovalis REIT

(TSX:INO.UN)

46Neutral
Inovalis REIT is under pressure due to financial difficulties, including negative revenue growth and substantial profitability issues. Technical indicators suggest bearish sentiment, and valuation metrics reflect earnings challenges. The lack of dividend yield further diminishes the stock's appeal.

Inovalis REIT (INO.UN) vs. S&P 500 (SPY)

Inovalis REIT Business Overview & Revenue Model

Company DescriptionInovalis REIT (INO.UN) is a real estate investment trust focused on owning and managing a diversified portfolio of office properties located primarily in France and Germany. The company targets high-quality assets in major urban centers, aiming to provide stable and growing cash distributions to its unitholders. Inovalis REIT operates within the real estate sector, specifically focusing on commercial office spaces, and emphasizes strategic investments that enhance value through active asset management and redevelopment opportunities.
How the Company Makes MoneyInovalis REIT generates revenue primarily through rental income derived from its portfolio of office properties. The company leases these properties to a diverse range of tenants, ensuring a steady flow of rental payments. Additionally, Inovalis REIT engages in property management and development activities that can lead to increased property values and rental income over time. The trust may also benefit from capital appreciation of its real estate assets, which can be realized through strategic sales or refinancing activities. Partnerships with local real estate operators and investment in high-demand urban areas further bolster its revenue potential by enhancing asset performance and occupancy rates.

Inovalis REIT Financial Statement Overview

Summary
Inovalis REIT is facing financial headwinds, with declining revenues and profitability challenges. The balance sheet indicates high leverage, while cash flow metrics underscore cash management issues. The firm needs strategic interventions to improve profitability and stabilize financial health.
Income Statement
45
Neutral
The company's income statement shows a decline in revenue from the previous year, with a negative revenue growth rate of -28.1%. Gross profit margin is 56.0%, but the net profit margin is substantially negative at -286.7%. The company is also operating with negative EBIT and EBITDA margins, indicating challenges in profitability.
Balance Sheet
55
Neutral
The balance sheet reveals a high debt-to-equity ratio of 1.18, indicating significant leverage. The equity ratio stands at 44.1%, showing some asset backing. However, the return on equity is negative at -37.9%, reflecting poor returns on equity investments.
Cash Flow
52
Neutral
Cash flow analysis indicates a significant decline in operating cash flow, with a free cash flow growth rate of -77.0%. The operating cash flow to net income ratio is negative, suggesting cash flow challenges. However, free cash flow remains positive, albeit reduced.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
24.11M33.57M31.14M34.46M35.77M
Gross Profit
13.78M23.22M21.63M24.19M26.60M
EBIT
1.88M2.85M10.02M5.02M7.45M
EBITDA
-61.80M-21.80M16.23M35.87M17.54M
Net Income Common Stockholders
-69.13M-29.69M-36.98M30.33M18.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.25M12.61M45.18M76.63M80.38M
Total Assets
412.22M484.06M561.11M587.25M712.09M
Total Debt
215.51M219.45M243.09M207.12M288.66M
Net Debt
209.26M206.96M197.92M130.49M208.28M
Total Liabilities
230.11M236.69M272.93M241.16M335.43M
Stockholders Equity
182.04M246.42M286.98M344.79M375.24M
Cash FlowFree Cash Flow
913.00K3.97M21.43M-112.81M6.04M
Operating Cash Flow
913.00K3.97M21.43M-7.92M-2.67M
Investing Cash Flow
701.00K2.15M-60.47M106.61M33.00M
Financing Cash Flow
-7.92M-39.08M9.70M-97.54M-37.17M

Inovalis REIT Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.87
Price Trends
50DMA
0.90
Negative
100DMA
0.90
Negative
200DMA
0.98
Negative
Market Momentum
MACD
-0.02
Negative
RSI
51.58
Neutral
STOCH
61.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:INO.UN, the sentiment is Neutral. The current price of 0.87 is above the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.90, and below the 200-day MA of 0.98, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 61.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:INO.UN.

Inovalis REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
C$4.29B18.944.50%7.33%9.46%-42.77%
71
Outperform
$5.09B10.866.34%6.50%11.62%1120.60%
59
Neutral
$2.73B11.720.09%8795.52%5.45%-17.33%
58
Neutral
$712.35M-2.86%8.36%-10.56%81.41%
55
Neutral
$303.46M-9.20%6.27%4.16%-57.38%
55
Neutral
$2.14B-5.79%11.62%4.98%19.54%
46
Neutral
C$28.22M-32.27%7.55%-28.22%-132.04%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:INO.UN
Inovalis REIT
0.86
-0.25
-22.52%
TSE:REI.UN
RioCan Real Estate Investment
17.02
0.52
3.18%
TSE:D.UN
Dream Office Real Estate Investment
15.99
-2.13
-11.76%
TSE:AX.UN
Artis Real Estate Investment
7.20
1.20
20.02%
TSE:AP.UN
Allied Properties Real Estate Investment Trust
15.58
0.17
1.08%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
25.17
4.37
21.01%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.