Innodata Inc.
Innodata Inc. Fundamental Analysis
Innodata Inc. (INOD) shows moderate financial fundamentals with a PE ratio of 42.79, profit margin of 14.11%, and ROE of 41.66%. The company generates $0.2B in annual revenue with strong year-over-year growth of 96.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze INOD's fundamental strength across five key dimensions:
Efficiency Score
ExcellentINOD demonstrates superior asset utilization.
Valuation Score
ModerateINOD shows balanced valuation metrics.
Growth Score
ExcellentINOD delivers strong and consistent growth momentum.
Financial Health Score
ExcellentINOD maintains a strong and stable balance sheet.
Profitability Score
ModerateINOD maintains healthy but balanced margins.
Key Financial Metrics
Is INOD Expensive or Cheap?
P/E Ratio
INOD trades at 42.79 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, INOD's PEG of -1.79 indicates potential undervaluation.
Price to Book
The market values Innodata Inc. at 14.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 32.33 times EBITDA. This signals the market has high growth expectations.
How Well Does INOD Make Money?
Net Profit Margin
For every $100 in sales, Innodata Inc. keeps $14.11 as profit after all expenses.
Operating Margin
Core operations generate 16.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.66 in profit for every $100 of shareholder equity.
ROA
Innodata Inc. generates $22.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Innodata Inc. produces operating cash flow of $51.22M, showing steady but balanced cash generation.
Free Cash Flow
Innodata Inc. generates strong free cash flow of $40.71M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.28 in free cash annually.
FCF Yield
INOD converts 2.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
42.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
14.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.42
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How INOD Stacks Against Its Sector Peers
| Metric | INOD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 42.79 | 35.19 | Worse (Expensive) |
| ROE | 41.66% | 1155.00% | Weak |
| Net Margin | 14.11% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.05 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 2.67 | 4.71 | Strong Liquidity |
| ROA | 22.00% | -314918.00% (disorted) | Strong |
INOD outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Innodata Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
169.71%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
1664.51%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
537.67%
Industry Style: Growth, Innovation, High Beta
High Growth