One-glance verdict
Within fair range
$25.16 our estimate vs market $35.05
Wall Street consensus: $111.50 (343.1% higher than our fair-value estimate)
39% above our estimate
Fundamentals snapshot
Innodata Inc.
INOD · NGM · Technology · Information Technology Services
Current price
$35.05
52-week range
$34.23 - $125.14
Market cap
$1.21B
Balance sheet
Healthy
222.75x Strong cushion
Net cash $160.44M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 39.2% last year.
- Reward Returns 35.4% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 7/10 years.
What this company does
Innodata Inc.
Innodata helps other businesses use artificial intelligence by preparing and labeling data for AI training, and also turns complex medical records into easy-to-understand digital information. Their income mainly comes from providing these specialized data services to industries like finance and healthcare. This matters because as more companies adopt AI, they'll need Innodata's expertise to make their AI systems work correctly.
How the company got here
Innodata Inc. was founded in 1988 and originally focused on digitizing content for publishers and information companies. Over the years, it expanded its services and even changed its name from Innodata Isogen Inc. to Innodata Inc. to reflect a broader scope beyond its early publishing roots. The company has evolved significantly, shifting its focus in recent years towards higher-value work in artificial intelligence (AI) data engineering and generative AI support. This strategic pivot aims to leverage its expertise in handling large volumes of content and data for the growing AI market.
What it actually does
Innodata is a data engineering company that helps other businesses use and integrate artificial intelligence (AI) into their operations and products. Think of them as a behind-the-scenes partner that prepares and structures data, which is like the raw material AI needs to learn and function. They provide AI-enabled platforms and services that assist companies in developing, deploying, and managing AI technologies. Innodata works with various industries, including banking, insurance, financial services, technology, and digital retail.
Digital Data Solutions (DDS)
This is Innodata's largest and most strategically important business segment. The Digital Data Solutions (DDS) segment focuses on providing services related to artificial intelligence (AI) data. This includes preparing data that AI models use to learn (AI training data), evaluating how well those models perform after training, and helping to deploy and integrate AI models into a company's existing systems. Essentially, DDS helps companies build and refine the AI tools they need by managing the complex data involved.
Synodex
The Synodex segment is specifically focused on the healthcare industry. It takes complex medical records and transforms them into structured, digital data. This organized data can then be used more easily by insurance companies and healthcare providers for various workflows, such as processing claims, managing patient care, or performing data analysis. Think of it as taking messy, handwritten doctor's notes and turning them into a neat, digital database that's easy for computers to understand and use.
Agility
Agility is Innodata's business that provides software and services for media intelligence and public relations. The Agility PR Solutions platform helps professionals monitor media coverage, analyze trends, and manage their public relations workflows. It uses AI to enhance its monitoring and analytics capabilities, making it easier for companies to understand what's being said about them in the news and on social media, and to manage their communications strategies more effectively.
What management is betting on now
Innodata's management is heavily focused on capitalizing on the rapid growth of AI. They are betting that their expertise in data engineering, particularly in preparing and structuring data for AI models, will be in high demand. The company is positioning itself as a key partner for businesses looking to implement both traditional AI and the newer generative AI technologies. By offering specialized services in data collection, annotation, and model deployment, Innodata aims to help clients build more sophisticated and effective AI solutions.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$15.11M
FY2025 Q1
$8.52M
FY2025 Q2
$2.53M
FY2025 Q3
$14.54M
FY2025 Q4
$10.06M
FY2026 Q1
$34.84M
FY2026 Q2
$124.29M
FY2026 Q3
$-86.36M
Revenue
$95.62M
Net income
$10.33M
Diluted EPS
0.29
Operating cash flow
$-83.96M
Free cash flow
$-86.36M
Fetching…
Sources
Revenue
$92.14M
Net income
$14.41M
Diluted EPS
0.41
Operating cash flow
$127.18M
Free cash flow
$124.29M
Fetching…
Sources
Revenue
$90.10M
Net income
$14.90M
Diluted EPS
0.42
Operating cash flow
$37.26M
Free cash flow
$34.84M
Fetching…
Sources
Revenue
$72.38M
Net income
$8.83M
Diluted EPS
0.26
Operating cash flow
$12.88M
Free cash flow
$10.06M
Fetching…
Sources
Revenue
$62.55M
Net income
$8.34M
Diluted EPS
0.24
Operating cash flow
$18.77M
Free cash flow
$14.54M
Fetching…
Sources
Revenue
$58.39M
Net income
$7.22M
Diluted EPS
0.20
Operating cash flow
$4.24M
Free cash flow
$2.53M
Fetching…
Sources
Revenue
$58.34M
Net income
$7.79M
Diluted EPS
0.22
Operating cash flow
$10.87M
Free cash flow
$8.52M
Fetching…
Sources
Revenue
$59.18M
Net income
$10.30M
Diluted EPS
0.35
Operating cash flow
$17.33M
Free cash flow
$15.11M
Fetching…
Sources
Is it cheap or expensive?
Fair value $25.16 vs current price $35.05
Wall Street consensus is the average analyst price target: $111.50 (343.1% higher than our fair-value estimate).
Our most-likely fair value is $25.16 a share — about 28.2% away from today's price of $35.05, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $160.4M - more cash than debt. Interest coverage 222.8x.
Net debt
$-160.44M
Interest coverage
222.75x
Innodata Inc.'s profit covers its interest bill about 222.8 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
INOD
BASELINE
Innodata Inc.
Total debt $3.53M Interest coverage 222.75x This is the baseline the peer rows are being compared against.
Total debt $542.06M Interest coverage 7.68x -97% vs INOD Carries about 29.0x less debt cushion than INOD.
Total debt $517.85M Interest coverage 6.18x -97% vs INOD Carries about 36.1x less debt cushion than INOD.
Total debt $526.36M Interest coverage 4.72x -98% vs INOD Carries about 47.2x less debt cushion than INOD.
What you should know
The case for and against INOD
3 Rewards
0 Risks
Rewards
-
Revenue grew 39.2% last year.
-
Returns 35.4% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.40x
Forward P/E
18.59x
P/B
6.83x
P/S
3.44x
EV/EBITDA
19.72x
PEG ratio
0.87x
Profitability
How much profit each dollar creates
Gross margin
42.1%
Operating margin
9.1%
Net margin
13.8%
ROE
35.4%
ROA
15.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
2.84x
Quick ratio
2.54x
Total debt
$3.53M
Total cash
$163.97M
Growth
How the business has been compounding
Revenue TTM
$350.23M
Revenue 5Y CAGR
37.8%
EPS TTM
1.38
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$93.36M
Free CF TTM
$35.65M
FCF margin
10.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
—