What are the investment strengths of Innodata Inc (INOD)?

Capital efficiency is exceptional: ROIC 43.5% TTM with minimal capex (4.4% of revenue) creates compounding machine. Each dollar reinvested generates 43 cents annually. Valuation has growth support: P/E 54x looks rich but 5Y EPS CAGR 88.8% implies PEG under 0.7. Revenue growth 50% 3Y CAGR vs P/S 8.1x.

What are the investment risks for Innodata Inc (INOD)?

EPS declined 53% YoY despite revenue growth - margin compression or one-time items signal potential earnings quality issues requiring investigation. P/B of 23.8x vs industry 2-3x typical - priced for perfection. Any growth deceleration triggers multiple compression risk.

Innodata Inc

INOD

—

Build a strategy around INOD

Innodata Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-10

Snapshot

ROE of 46.4% TTM vs industry median 0.4% - 100x advantage driven by asset-light model with 1.98x asset turnover[Return on Equity]
Revenue 3Y CAGR 50% with operating margin 16.9% TTM vs industry 2.5% - rare profitable hypergrowth[Total Revenue 3Y Growth]
Net cash position (73.9M cash vs 4.7M debt) at 0.05 debt/equity funds growth without dilution risk[Debt to Equity]

Watch Triggers

EPS Growth 1Y: Returns to positive YoY growth — 53% YoY decline contradicts growth story - reversal confirms operational strength
Operating Margin: Sustains above 15% TTM — Current 16.9% vs industry 2.5% is key differentiator - compression kills thesis
Total Revenue 3Y Growth: Decelerates below 25% CAGR — Premium valuation requires hypergrowth - slowdown reprices stock materially

Bull Case

Capital efficiency is exceptional: ROIC 43.5% TTM with minimal capex (4.4% of revenue) creates compounding machine. Each dollar reinvested generates 43 cents annually.

ROICCapital ExpenditureFree Cash Flow

Valuation has growth support: P/E 54x looks rich but 5Y EPS CAGR 88.8% implies PEG under 0.7. Revenue growth 50% 3Y CAGR vs P/S 8.1x.

P/E RatioEPS Growth 5YP/S Ratio

Bear Case

EPS declined 53% YoY despite revenue growth - margin compression or one-time items signal potential earnings quality issues requiring investigation.

EPS Growth 1YNet Margin

P/B of 23.8x vs industry 2-3x typical - priced for perfection. Any growth deceleration triggers multiple compression risk.

P/B RatioP/E Ratio

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

60%

Leverage INOD's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.

Take Me to The Editor

Forward Thesis

AI data services demand sustains 30%+ revenue growth through 2027 as LLM training scales

1-3ymed

Data annotation market expanding with generative AI adoption
Existing big tech relationships provide recurring revenue base
40.7M FCF TTM enables organic capacity expansion

Revenue 3Y CAGR 50.2% demonstrates demand accelerationFCF margin 17% funds growth without external capitalROIC 43.5% TTM indicates efficient capital deployment

Valuation Context

Caveats

Public Strategies Rankings

See how Innodata Inc ranks across different investment strategies.

Leverage INOD's top insights and create a custom strategy in seconds. Our AI editor does it all — in one click.

INOD Fundamentals

Information → Data Processing, Hosting, and Related Activities

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$1.37B		—
Enterprise Value	$1.3B		—
P/E Ratio	43		—
Total Revenue - TTM	$251.66M	+47.6%	—
Earnings Per Share (diluted) - TTM	$0.92	+3.4%	—
Operating Margin - TTM	15.8%	+1.6%	—
Net Margin - TTM	12.8%	-4.0%	—
Free Cash Flow - TTM	$35.65M	+31.4%	—
Return on Common Equity - TTM	37.7%	-26.6%	—
Beta 5Y (Monthly)	unknown		—

INOD Dividend History

No dividends

INOD Stock Splits

2 stock splits

03/26/011:2 split

12/04/001:2 split

INOD SEC Filings

Filing Date	Report Date	Report Type	Filing Link
02/26/26	12/31/25	10-K	0001104659-26-020655
11/06/25	09/30/25	10-Q	0001104659-25-107873
07/31/25	06/30/25	10-Q	0001410578-25-001550
05/09/25	03/31/25	10-Q	0001410578-25-001113
02/24/25	12/31/24	Unknown	0001410578-25-000194
11/07/24	09/30/24	10-Q	0001410578-24-001800
08/09/24	06/30/24	10-Q	0001410578-24-001246
05/08/24	03/31/24	10-Q	0001410578-24-000611
03/04/24	12/31/23	10-K	0001410578-24-000124
11/03/23	09/30/23	10-Q	0001410578-23-002173
08/11/23	06/30/23	10-Q	0001410578-23-001711
05/12/23	03/31/23	10-Q	0001410578-23-001033
02/24/23	12/31/22	10-K	0001410578-23-000153
11/10/22	09/30/22	10-Q	0001410578-22-003169
08/12/22	06/30/22	10-Q	0001410578-22-002350
05/13/22	03/31/22	10-Q	0001410578-22-001445
03/24/22	12/31/21	10-K	0001410578-22-000489
11/04/21	09/30/21	10-Q	0001104659-21-134238
08/05/21	06/30/21	10-Q	0001104659-21-100646
05/06/21	03/31/21	10-Q	0001104659-21-062261
03/15/21	12/31/20	10-K	0001104659-21-035749
11/12/20	09/30/20	10-Q	0001104659-20-124244
08/06/20	06/30/20	10-Q	0001104659-20-091277
05/14/20	03/31/20	10-Q	0001104659-20-061425
03/16/20	12/31/19	10-K	0001104659-20-034167
11/07/19	09/30/19	10-Q	0001104659-19-060979
08/08/19	06/30/19	10-Q	0001144204-19-038490
05/10/19	03/31/19	10-Q	0001144204-19-025076
03/26/19	12/31/18	10-K	0001144204-19-015946
11/08/18	09/30/18	10-Q	0001144204-18-058312
08/13/18	06/30/18	10-Q	0001144204-18-043830
05/15/18	03/31/18	10-Q	0001144204-18-028916
03/22/18	12/31/17	10-K	0001144204-18-016374
11/09/17	09/30/17	10-Q	0001144204-17-057637
08/08/17	06/30/17	10-Q	0001144204-17-041213
05/10/17	03/31/17	10-Q	0001144204-17-025961
03/15/17	12/31/16	10-K	0001144204-17-014715
11/08/16	09/30/16	10-Q	0001144204-16-132393
08/09/16	06/30/16	10-Q	0001144204-16-117628
05/10/16	03/31/16	10-Q	0001144204-16-100531
03/14/16	12/31/15	10-K	0001144204-16-087840
11/06/15	09/30/15	10-Q	0001144204-15-063285
08/07/15	06/30/15	10-Q	0001144204-15-047205
05/08/15	03/31/15	10-Q	0001144204-15-028655
03/13/15	12/31/14	10-K	0001144204-15-015794
11/07/14	09/30/14	10-Q	0001144204-14-066019
08/08/14	06/30/14	10-Q	0001144204-14-047987
05/05/14	03/31/14	10-Q	0001144204-14-027580
03/14/14	12/31/13	10-K	0001144204-14-015700
11/12/13	09/30/13	10-Q	0001144204-13-060197
08/08/13	06/30/13	10-Q	0001144204-13-044042
05/06/13	03/31/13	10-Q	0001144204-13-026543
03/15/13	12/31/12	10-K	0001144204-13-015435
11/07/12	09/30/12	10-Q	0001144204-12-060009
08/07/12	06/30/12	10-Q	0001144204-12-043385
05/04/12	03/31/12	10-Q	0001144204-12-026353
02/28/12	12/31/11	10-K	0001144204-12-011533
11/02/11	09/30/11	10-Q	0001144204-11-060762
08/08/11	06/30/11	10-Q	0001144204-11-044512
05/02/11	03/31/11	10-Q	0001144204-11-025368
02/28/11	12/31/10	10-K	0001144204-11-011474
10/26/10	09/30/10	10-Q	0001144204-10-055477
07/27/10	06/30/10	10-Q	0001144204-10-039566
05/03/10	03/31/10	10-Q	0001144204-10-023852
03/11/10	12/31/09	10-K	0001144204-10-012793
11/05/09	09/30/09	10-Q	0001144204-09-056791
08/06/09	06/30/09	10-Q	0001144204-09-040866
05/07/09	03/31/09	10-Q	0001144204-09-024637
03/11/09	12/31/08	10-K	0001144204-09-013288
11/06/08	09/30/08	10-Q	0001144204-08-061566
08/07/08	06/30/08	10-Q	0001144204-08-044615
05/08/08	03/30/08	Unknown	--
03/13/08	12/31/07	10-K	0001144204-08-015122
11/15/07	09/30/07	NT 10-Q	0001144204-07-061838
08/13/07	06/30/07	10-Q	0001144204-07-042365
05/15/07	03/30/07	Unknown	--
03/30/07	12/31/06	10-K	0001144204-07-015812
11/13/06	09/30/06	10-Q	0001144204-06-046675
08/14/06	06/30/06	10-Q	0001144204-06-033449
05/15/06	03/30/06	Unknown	--
03/31/06	12/31/05	8-K	0001144204-06-000513
11/15/05	09/30/05	10-Q	0001144204-05-035615
08/12/05	06/30/05	10-Q	0001144204-05-024874
05/16/05	03/30/05	Unknown	--
03/30/05	12/31/04	10-K	0001144204-05-009091
11/12/04	09/30/04	10-Q	0001144204-04-018415
08/13/04	06/30/04	10-Q	0001144204-04-011783
05/17/04	03/30/04	Unknown	--
03/26/04	12/31/03	10-K	0001144204-04-003625
11/12/03	09/30/03	10-Q	0001144204-03-007015
08/14/03	06/30/03	10-Q	0001144204-03-004494
05/15/03	03/30/03	Unknown	--
03/28/03	12/31/02	10-K	0000922811-03-000030
11/13/02	09/30/02	10-Q	0000922811-02-000090
08/14/02	06/30/02	10-Q	0000922811-02-000072
05/15/02	03/30/02	Unknown	--
03/27/02	12/31/01	10-K	0000922811-02-000042
11/13/01	09/30/01	10-Q	0000922811-01-500051
08/14/01	06/30/01	10-Q	0000903651-01-500026
05/15/01	03/30/01	Unknown	--
04/02/01	12/31/00	10-K	0000922811-01-500022
11/14/00	09/30/00	10-Q	0000903651-00-500009
08/14/00	06/30/00	10-Q	0000922811-00-000023
05/12/00	03/30/00	Unknown	--