One-glance verdict
Overvalued
$41.10 our estimate vs market $69.21
Wall Street consensus: $122.75 (198.7% higher than our fair-value estimate)
68% above our estimate, beyond the bull case
Fundamentals snapshot
Innodata Inc.
INOD · NGM · Technology · Information Technology Services
Current price
$69.21
52-week range
$34.23 - $125.14
Market cap
$2.38B
Balance sheet
Healthy
222.75x Strong cushion
Net cash $246.54M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 26.0% last year.
- Reward Returns 37.8% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Stock trades 7.5% above its 5-year average P/E.
What this company does
Innodata Inc.
Innodata is a technology company that helps other businesses adopt artificial intelligence (AI), primarily by preparing the huge amounts of data needed to train AI systems. It also earns money from two other software products: one that organizes messy medical records for insurance companies and another that helps public relations teams track media. This is important because as more industries from banking to healthcare try to use AI, they often need the specialized data and tools that Innodata provides.
How the company got here
Founded in 1988, Innodata started by helping companies convert physical documents and other non-digital information into digital formats. This was its main business for many years, and it grew by setting up large operational centers in places like the Philippines, India, and Sri Lanka. Over time, the company shifted its focus, first getting into the e-book creation business and later expanding into more specialized areas. A key turning point was its strategic move toward artificial intelligence (AI), where it now helps major tech companies prepare and engineer the massive amounts of data needed to train AI systems.
What it actually does
Innodata is a data engineering company, which means it helps other businesses clean up, organize, and make sense of large amounts of information. Think of it like a company that takes messy, unstructured data—like doctors' handwritten notes or thousands of news articles—and turns it into clean, organized data that a computer can easily understand and use. This organized data is crucial for training artificial intelligence systems, making business decisions, and creating digital products. The company provides these services to major technology firms, as well as companies in finance, insurance, and media.
Digital Data Solutions (DDS)
This is Innodata's largest and most important business area, focused on preparing data for artificial intelligence. Companies building AI, including some of the biggest names in tech, pay Innodata to process and label huge volumes of text, images, and other information that they use to 'train' their AI models. This segment acts as a critical part of the AI supply chain (the process of gathering and preparing resources to build a product). It is the core of the company's strategy and where it is most focused on growing.
Synodex
This part of the company offers a specialized platform for the insurance and healthcare industries. Synodex takes unstructured medical records—like a patient's entire medical history file—and transforms them into organized, digital data. Insurance companies are the main customers; they use this structured data to more easily and quickly make decisions, such as for underwriting new life insurance policies. While smaller than the main data solutions business, it provides a steady, specialized service.
Agility
Agility is a software and services business designed for public relations (PR) and communications professionals. It provides a platform that helps PR teams find journalists, send out press releases, monitor news coverage about their brand, and analyze the results of their campaigns. Customers, which include PR agencies and corporate communications departments, pay for access to this all-in-one toolkit. This segment was built up through acquisitions and operates as a distinct software-focused business within Innodata.
What management is betting on now
Management is heavily focused on positioning Innodata as a key partner for companies developing advanced AI, especially generative AI. They are betting that the need for high-quality, human-processed data to train, test, and ensure the safety of these AI models will continue to grow rapidly. The strategy involves deepening relationships with large technology companies that are leading AI development. They are also investing in their own technology to make the process of data engineering more efficient and to handle more complex AI-related tasks.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$9.92M
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
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
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Sources
Revenue
$52.22M
Net income
$17.39M
Diluted EPS
0.51
Operating cash flow
$11.37M
Free cash flow
$9.92M
Fetching…
Sources
Is it cheap or expensive?
Fair value $41.10 vs current price $69.21
Wall Street consensus is the average analyst price target: $122.75 (198.7% higher than our fair-value estimate).
Our most-likely fair value is $41.10 a share — about 40.6% below today's price of $69.21, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $246.5M - more cash than debt. Interest coverage 222.8x.
Net debt
$-246.54M
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 $3.83M Interest coverage 222.75x This is the baseline the peer rows are being compared against.
Total debt $546.35M 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 $564.79M 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
1 Risk
Rewards
-
Revenue grew 26.0% last year.
-
Returns 37.8% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Stock trades 7.5% above its 5-year average P/E.
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)
53.65x
Forward P/E
33.15x
P/B
14.91x
P/S
7.50x
EV/EBITDA
36.00x
PEG ratio
0.87x
Profitability
How much profit each dollar creates
Gross margin
43.2%
Operating margin
17.2%
Net margin
14.7%
ROE
37.8%
ROA
14.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
1.73x
Quick ratio
1.60x
Total debt
$3.83M
Total cash
$250.37M
Growth
How the business has been compounding
Revenue TTM
$317.16M
Revenue 5Y CAGR
37.8%
EPS TTM
1.29
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$196.09M
Free CF TTM
$35.65M
FCF margin
11.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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