INNOVATE Corp. Common Stock (VATE)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach INNOVATE with Graham's suspicion of a company that has lost money in each of the last four years. At $6.38 on 2026-10-13, market cap is $87M, and FairStock's P/E is -3.56, reflecting negative EPS. The business has infrastructure, life sciences, and spectrum segments, with 3,587 employees. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue $421.6M and net income $10.7M, or diluted EPS $0.71, a rare profit. But fiscal Q1 2026 lost $16.8M, FY2025 lost $60.6M, FY2024 lost $34.6M, and FY2023 lost $35.2M. FairStock's Lynch category is none, because losses in each of the last four years. FairStock's Piotroski F-Score is 7/9 and ROCE is 4.28%, suggesting some operating improvement but low returns. FairStock's Altman Z-Score is -0.96, which signals distress. The FCF yield is 121.8%: trailing free cash flow of $106M against an $87M market cap, with EV/EBITDA of 5.96. If that cash flow is sustainable, the price may be cheap. However, high beta of 2.44, no dividend, and N/A debt-to-equity and price-to-book data leave little margin of safety. I prefer consistent earning power and a durable moat; here I see neither yet. One profitable quarter is hopeful, but it does not erase four years of losses. I would need multiple periods of positive earnings and stable cash generation before calling this a Buffett-style bargain.

In plain English: INNOVATE Corp. builds and maintains heavy infrastructure like steel structures and water pipes, and also has life sciences and spectrum businesses. The company has mostly lost money over recent years, though its latest quarter was profitable and it produces a lot of cash compared with its small stock market value. At $6.38, the price looks cheap on cash flow but risky because profits have been inconsistent and financial risk appears high.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer