INOD Stock Analysis: Innodata | NASDAQ
Information Technology Services | NASDAQ, USA | Market Cap: 1.816m USD | 12M Return: -19.6% | US4576422053 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 68.6M
Qual. Beats: 2
Rev. Trend: 98.5%
Qual. Beats: 2
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Innodata Inc. (NASDAQ: INOD) is a US-based data engineering company that operates across three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment provides AI training and post-training data, model evaluation, alignment, safety, deployment, integration, and AI-enabled platforms. Synodex converts medical records into structured digital data for insurance and healthcare workflows, while the Agility platform offers media intelligence and public relations workflow software with AI-driven monitoring and analytics. The company serves banking, insurance, financial services, technology, digital retailing, and information media clients, and operates in the United States, the United Kingdom, the Netherlands, Canada, Germany, Belgium, and other international markets. Founded in 1988 and headquartered in Ridgefield Park, New Jersey, Innodata has been publicly traded on NASDAQ since 1993.
INOD is classified within the Data Processing & Outsourced Services sub-industry, a sector that has experienced heightened demand due to the rapid expansion of generative AI, as companies require large volumes of curated, high-quality datasets to train and fine-tune machine learning models. The firms tri-segment structure reflects a hybrid business model that blends traditional business process outsourcing (medical record digitization, PR workflow tools) with the higher-growth AI data infrastructure market, positioning it at the intersection of data services and the broader AI development ecosystem.
- AI training data demand from hyperscalers accelerates DDS segment growth
- Top customer concentration creates revenue volatility risk
- Offshore labor cost inflation pressures operating margins
| Net Income: 46.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.61 > 0.02 and ΔFCF/TA 34.08 > 1.0 |
| NWC/Revenue: 42.62% < 20% (prev 28.74%; Δ 13.88% < -1%) |
| CFO/TA 0.65 > 3% & CFO 233.3m > Net Income 46.5m |
| Net Debt (-231.5m) to EBITDA (68.8m): -3.36 < 3 |
| Current Ratio: 1.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (34.8m) vs 12m ago -1.50% < -2% |
| Gross Margin: 42.63% > 18% (prev 41.67%; Δ 0.96% > 0.5%) |
| Asset Turnover: 129.6% > 50% (prev 172.0%; Δ -42.38% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.38 (Total Current Assets 320.8m - Total Current Liabilities 185.6m) / Total Assets 356.7m |
| B: 0.23 (Retained Earnings 80.5m / Total Assets 356.7m) |
| C: 0.24 (EBIT TTM 58.4m / Avg Total Assets 244.6m) |
| D: 0.81 (Book Value of Equity 159.5m / Total Liabilities 197.1m) |
| Altman-Z'' = 5.68 = AAA |
| DSRI: 1.00 (Receivables 47.6m/34.1m, Revenue 317.2m/228.1m) |
| GMI: 0.98 (GM 41.67% / 42.63%) |
| AQI: 0.38 (AQ_t 0.07 / AQ_t-1 0.18) |
| SGI: 1.39 (Revenue 317.2m / 228.1m) |
| TATA: -0.52 (NI 46.5m - CFO 233.3m) / TA 356.7m) |
| Beneish M = -3.19 (Cap -4..+1) = AA |
As of October 24, 2026, the stock is trading at USD 59.39 with a total of 866,105 shares traded. Over the past week, the price has changed by +12.44%, over one month by -17.50%, over three months by -1.03% and over the past year by -19.63%.
Current recommended Stop Loss: 54.70 (which is 7.9% or 1.1 ATR below the current price).
Innodata has received a consensus analysts rating of 4.75. Therefore, it is recommended to buy INOD.
- StrongBuy: 3
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 122.8 | 106.7% |
P/E Trailing = 40.9457
P/E Forward = 31.348
P/S = 5.726
P/B = 15.0699
P/EG = 0.8726
Revenue TTM = 317.2m USD
EBIT TTM = 58.4m USD
EBITDA TTM = 68.8m USD
Long Term Debt = 11.5m USD (estimated: total debt 15.0m - short term 3.54m)
Short Term Debt = 3.54m USD (from shortTermDebt, last quarter)
Debt = 18.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 3.83m
Net Debt = -231.5m USD (calculated: Debt 18.9m - CCE 250.4m)
Enterprise Value = 1.58b USD (1.82b + Debt 18.9m - CCE 250.4m)
Interest Coverage Ratio = unknown (Ebit TTM 58.4m / Interest Expense TTM 0.0)
EV/FCF = 7.25x (Enterprise Value 1.58b / FCF TTM 218.6m)
FCF Yield = 13.79% (FCF TTM 218.6m / Enterprise Value 1.58b)
FCF Margin = 68.92% (FCF TTM 218.6m / Revenue TTM 317.2m)
Net Margin = 14.66% (Net Income TTM 46.5m / Revenue TTM 317.2m)
Gross Margin = 42.63% ((Revenue TTM 317.2m - Cost of Revenue TTM 182.0m) / Revenue TTM)
Gross Margin QoQ = 46.08% (prev 43.40%)
Tobins Q-Ratio = 4.44 (Enterprise Value 1.58b / Total Assets 356.7m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 18.9m)
Taxrate = 20.45% (11.9m / 58.4m)
NOPAT = 46.5m (EBIT 58.4m * (1 - 20.45%))
Current Ratio = 1.73 (Total Current Assets 320.8m / Total Current Liabilities 185.6m)
Debt / Equity = 0.12 (Debt 18.9m / totalStockholderEquity, last quarter 159.5m)
Debt / EBITDA = -3.36 (Net Debt -231.5m / EBITDA 68.8m)
Debt / FCF = -1.06 (Net Debt -231.5m / FCF TTM 218.6m)
Total Stockholder Equity = 123.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 19.00% (Net Income 46.5m / Total Assets 356.7m)
RoE = 37.78% (Net Income TTM 46.5m / Total Stockholder Equity 123.0m)
RoCE = 43.44% (EBIT 58.4m / Capital Employed (Equity 123.0m + L.T.Debt 11.5m))
RoIC = 29.28% (NOPAT 46.5m / Invested Capital 158.8m)
WACC = 17.41% (E(1.82b)/V(1.83b) * Re(17.59%) + D(18.9m)/V(1.83b) * Rd(0.0%) * (1-Tc(0.20)))
Discount Rate = 17.59% (= CAPM, Blume Beta Adj.) -> capped to 12.54%
Shares (quarterly) Correlation: 72.57 | Cagr: 3.42%
[DCF] Terminal Value 54.10% ; FCFF base≈145.6m ; Y1≈166.9m ; Y5≈245.6m
[DCF] Fair Price = 47.42 (EV 1.40b - Net Debt -231.5m = Equity 1.63b / Shares 34.4m; r=17.41% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 2.09 | # QB: 2
Revenue Correlation: 98.54 | Revenue CAGR: 70.96% | SUE: 1.03 | # QB: 2
EPS current Quarter (2026-09-30): EPS=0.27 | Chg30d=+0.00% | Revisions=+25% | Analysts=3
EPS current Year (2026-12-31): EPS=1.65 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+78.8% | GrowthRev=+42.9%
EPS next Year (2027-12-31): EPS=2.09 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+26.9% | GrowthRev=+28.0%
[Analyst] Revisions Ratio: +50% (up=3, down=0)