INNOVATE

VATE

Engineering & Construction · Industrials

Price

$7.67

+0.18 (+2.40%)

pre-market:$7.89+2.87%

Market Cap

$104.6M

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 13, 2026 · filings through Jun 30, 2026

Share count rising — dilution

+71.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 7.7M (2021) → 13.2M (2025)

INNOVATE Corp. is a holding company that owns businesses across several industries, with its largest segment being infrastructure construction. Its main subsidiary, DBM Global, builds structural steel and heavy construction projects like bridges, stadiums, and commercial buildings. Customers include government agencies, real estate developers, and large contractors across the United States.

The company earns most of its revenue from construction contracts, where it gets paid to complete specific projects rather than through recurring subscriptions or licenses. INNOVATE also has smaller stakes in life sciences and spectrum businesses, making it a diversified but complex conglomerate. With a market cap of around $100 million, it is a small company carrying meaningful debt, which is a key financial risk. Growth depends largely on winning new construction contracts and the overall health of US infrastructure spending, including any federal infrastructure funding that flows into steel-intensive projects.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+74.2% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+144.3% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

68.2%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$5M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

INNOVATE grew revenue 74% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

18.9%

Thin — 18.9% gross margin

Operating Margin

8.2%

Modest — 8.2% operating margin

ROCE

8.8%

Below par — 8.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+52.4%

Fast-growing sales (+52.4% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

9.4%

Modest free cash flow (9.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

N/A

—

Data not available

Interest Cover

0.68x

Dangerous — barely covers interest (0.7x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

10.94%

Healthy income — 10.94% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

N/A

Data not available

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