INOD Stock Analysis: Innodata | NASDAQ
Information Technology Services | NASDAQ, USA | Market Cap: 1.960m USD | 12M Return: 20.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 69.5M
Qual. Beats: 1
Rev. Trend: 98.5%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.5 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 U.S.-headquartered data engineering company founded in 1988 and based in Ridgefield Park, New Jersey. It operates through three segments: Digital Data Solutions (DDS), which provides AI training and post-training data, model evaluation, alignment, safety, and deployment services; Synodex, an industry platform that converts medical records into structured digital data for insurance and healthcare workflows; and Agility, a media intelligence and public relations workflow platform enhanced with AI-driven monitoring and analytics. The company serves clients across banking, insurance, financial services, technology, digital retailing, and information media, with operations spanning the United States, the United Kingdom, the Netherlands, Canada, Germany, Belgium, and other international markets.
The company is classified within the GICS Industrials sector, specifically the Data Processing & Outsourced Services sub-industry. Its DDS segment operates in the AI data services market, which involves the human-annotated datasets and evaluation work used to train and refine machine learning models. Innodata changed its name from Innodata Isogen Inc. in November 2003 and has been publicly listed since its 1993 IPO.
- AI training data demand accelerates from hyperscaler customers
- DDS segment revenue scales on GenAI model training contracts
- Operating margins expand as AI data volumes scale
| Net Income: 39.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.29 > 0.02 and ΔFCF/TA 5.20 > 1.0 |
| NWC/Revenue: 36.42% < 20% (prev 26.30%; Δ 10.11% < -1%) |
| CFO/TA 0.35 > 3% & CFO 73.1m > Net Income 39.3m |
| Net Debt (-113.3m) to EBITDA (56.9m): -1.99 < 3 |
| Current Ratio: 2.48 > 1.5 & < 3 |
| Outstanding Shares: last quarter (35.6m) vs 12m ago 1.78% < -2% |
| Gross Margin: 40.92% > 18% (prev 40.12%; Δ 0.80% > 0.5%) |
| Asset Turnover: 168.9% > 50% (prev 161.6%; Δ 7.32% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.49 (Total Current Assets 173.0m - Total Current Liabilities 69.8m) / Total Assets 210.4m |
| B: 0.31 (Retained Earnings 66.1m / Total Assets 210.4m) |
| C: 0.30 (EBIT TTM 50.4m / Avg Total Assets 167.8m) |
| D: 1.56 (Book Value of Equity 128.3m / Total Liabilities 82.2m) |
| Altman-Z'' = 7.90 = AAA |
| DSRI: 1.11 (Receivables 45.9m/29.6m, Revenue 283.4m/202.3m) |
| GMI: 0.98 (GM 40.12% / 40.92%) |
| AQI: 0.63 (AQ_t 0.12 / AQ_t-1 0.19) |
| SGI: 1.40 (Revenue 283.4m / 202.3m) |
| TATA: -0.16 (NI 39.3m - CFO 73.1m) / TA 210.4m) |
| Beneish M = -2.90 (Cap -4..+1) = A |
As of July 26, 2026, the stock is trading at USD 55.89 with a total of 908,151 shares traded. Over the past week, the price has changed by -8.09%, over one month by -31.47%, over three months by +32.00% and over the past year by +20.69%.
Current recommended Stop Loss: 43.80 (which is 21.6% or 2.2 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 | 119.6% |
P/E Trailing = 55.055
P/E Forward = 49.505
P/S = 6.9144
P/B = 15.6354
P/EG = 0.8726
Revenue TTM = 283.4m USD
EBIT TTM = 50.4m USD
EBITDA TTM = 56.9m USD
Long Term Debt = 2.87m USD (estimated: total debt 4.10m - short term 1.23m)
Short Term Debt = 1.23m USD (from shortTermDebt, last quarter)
Debt = 4.10m USD (from shortLongTermDebtTotal, last quarter) (leases 4.10m already included)
Net Debt = -113.3m USD (calculated: Debt 4.10m - CCE 117.4m)
Enterprise Value = 1.85b USD (1.96b + Debt 4.10m - CCE 117.4m)
Interest Coverage Ratio = unknown (Ebit TTM 50.4m / Interest Expense TTM 0.0)
EV/FCF = 29.80x (Enterprise Value 1.85b / FCF TTM 62.0m)
FCF Yield = 3.36% (FCF TTM 62.0m / Enterprise Value 1.85b)
FCF Margin = 21.87% (FCF TTM 62.0m / Revenue TTM 283.4m)
Net Margin = 13.86% (Net Income TTM 39.3m / Revenue TTM 283.4m)
Gross Margin = 40.92% ((Revenue TTM 283.4m - Cost of Revenue TTM 167.4m) / Revenue TTM)
Gross Margin QoQ = 43.40% (prev 38.34%)
Tobins Q-Ratio = 8.78 (Enterprise Value 1.85b / Total Assets 210.4m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 4.10m)
Taxrate = 21.99% (11.1m / 50.4m)
NOPAT = 39.3m (EBIT 50.4m * (1 - 21.99%))
Current Ratio = 2.48 (Total Current Assets 173.0m / Total Current Liabilities 69.8m)
Debt / Equity = 0.03 (Debt 4.10m / totalStockholderEquity, last quarter 128.3m)
Debt / EBITDA = -1.99 (Net Debt -113.3m / EBITDA 56.9m)
Debt / FCF = -1.83 (Net Debt -113.3m / FCF TTM 62.0m)
Total Stockholder Equity = 104.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 23.41% (Net Income 39.3m / Total Assets 210.4m)
RoE = 37.48% (Net Income TTM 39.3m / Total Stockholder Equity 104.8m)
RoCE = 46.76% (EBIT 50.4m / Capital Employed (Equity 104.8m + L.T.Debt 2.87m))
RoIC = 30.77% (NOPAT 39.3m / Invested Capital 127.7m)
WACC = 17.39% (E(1.96b)/V(1.96b) * Re(17.43%) + D(4.10m)/V(1.96b) * Rd(0.0%) * (1-Tc(0.22)))
Discount Rate = 17.43% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 78.53 | Cagr: 4.84%
[DCF] Terminal Value 54.13% ; FCFF base≈49.3m ; Y1≈56.5m ; Y5≈83.2m
[DCF] Fair Price = 18.00 (EV 474.6m - Net Debt -113.3m = Equity 587.8m / Shares 32.7m; r=17.39% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 2.58 | # QB: 1
Revenue Correlation: 98.54 | Revenue CAGR: 70.97% | SUE: 2.63 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.26 | Chg30d=+0.00% | Revisions=+25% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.29 | Chg30d=+0.00% | Revisions=-25% | Analysts=3
EPS current Year (2026-12-31): EPS=1.38 | Chg30d=+0.00% | Revisions=+25% | GrowthEPS=+49.6% | GrowthRev=+41.9%
EPS next Year (2027-12-31): EPS=2.00 | Chg30d=-1.51% | Revisions=+25% | GrowthEPS=+45.4% | GrowthRev=+28.3%
[Analyst] Revisions Ratio: +29% (up=3, down=1)