Innodata Inc.
Innodata Inc. Fundamental Analysis
Innodata Inc. (INOD) shows moderate financial fundamentals with a PE ratio of 79.92, profit margin of 13.86%, and ROE of 37.48%. The company generates $0.3B in annual revenue with strong year-over-year growth of 47.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.9/100 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
WeakINOD trades at a premium to fair value.
Growth Score
ModerateINOD shows steady but slowing expansion.
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 79.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, INOD's PEG of 23.78 indicates potential overvaluation.
Price to Book
The market values Innodata Inc. at 24.48 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 58.42 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 $13.86 as profit after all expenses.
Operating Margin
Core operations generate 16.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $37.48 in profit for every $100 of shareholder equity.
ROA
Innodata Inc. generates $18.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Innodata Inc. generates strong operating cash flow of $73.21M, reflecting robust business health.
Free Cash Flow
Innodata Inc. generates strong free cash flow of $62.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.90 in free cash annually.
FCF Yield
INOD converts 1.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
79.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
23.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
24.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How INOD Stacks Against Its Sector Peers
| Metric | INOD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 79.92 | 36.74 | Worse (Expensive) |
| ROE | 37.48% | 968.00% | Weak |
| Net Margin | 13.86% | 5945062585.00% | Weak |
| Debt/Equity | 0.03 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 2.48 | 4.94 | Strong Liquidity |
| ROA | 18.67% | -296476.00% (disorted) | Strong |
INOD outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, 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
234.30%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
3935.06%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
539.03%
Industry Style: Growth, Innovation, High Beta
High Growth