NasdaqGM:INOD

Stock Analysis Report

Executive Summary

Innodata Inc. operates as a digital services and solution company worldwide.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Innodata's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.1%

INOD

1.0%

US IT

1.0%

US Market


1 Year Return

-5.6%

INOD

24.7%

US IT

6.7%

US Market

Return vs Industry: INOD underperformed the US IT industry which returned 24.7% over the past year.

Return vs Market: INOD underperformed the US Market which returned 6.7% over the past year.


Share holder returns

INODIndustryMarket
7 Day3.1%1.0%1.0%
30 Day4.7%-0.3%-1.8%
90 Day21.8%-2.3%-1.8%
1 Year-5.6%-5.6%26.0%24.7%9.1%6.7%
3 Year-46.4%-46.4%97.6%89.3%46.1%36.6%
5 Year-53.5%-53.5%156.0%132.3%66.9%48.6%

Price Volatility Vs. Market

How volatile is Innodata's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Innodata undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: INOD ($1.34) is trading below our estimate of fair value ($3.23)

Significantly Undervalued: INOD is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: INOD is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: INOD is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate INOD's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: INOD is good value based on its PB Ratio (1.2x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Innodata expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Innodata has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Innodata performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: INOD is unprofitable, but has reduced losses over the past 5 years at a rate of 13% per year.

Accelerating Growth: Unable to compare INOD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: INOD is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (8.4%).


Return on Equity

High ROE: INOD has a negative Return on Equity (-1.37%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: INOD is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: INOD is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Innodata's financial position?


Financial Position Analysis

Short Term Liabilities: INOD's short term assets ($26.0M) exceeds its short term liabilities ($15.2M)

Long Term Liabilities: INOD's short term assets (26.0M) exceeds its long term liabilities (10.9M)


Debt to Equity History and Analysis

Debt Level: INOD is debt free.

Reducing Debt: INOD has not had any debt for past 5 years.


Balance Sheet

Inventory Level: INOD has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if INOD's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable INOD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: INOD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 60.4% per year.


Next Steps

Dividend

What is Innodata's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate INOD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate INOD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if INOD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INOD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INOD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Innodata's salary, the management and board of directors tenure and is there insider trading?

12.8yrs

Average management tenure


CEO

Jack Abuhoff (58yo)

22.1yrs

Tenure

US$1,023,939

Compensation

Mr. Jack S. Abuhoff has been the President and Chief Executive Officer of Innodata Inc. since September 15, 1997 and served as its Interim Principal Financial Officer since May 10, 2018 until April 17, 201 ...


CEO Compensation Analysis

Compensation vs. Market: Jack's total compensation ($USD1.02M) is about average for companies of similar size in the US market ($USD495.80K).

Compensation vs Earnings: Jack's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

12.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: INOD's management team is seasoned and experienced (12.8 years average tenure).


Board Age and Tenure

1.5yrs

Average Tenure

60yo

Average Age

Experienced Board: INOD's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$3,77903 Oct 19
Luzich Partners
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Max PriceUS$1.29
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Luzich Partners
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Louise Forlenza
EntityIndividual
Role
Member of the Board of Directors
Independent Director
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Max PriceUS$0.99
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David Atkinson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$1.00
BuyUS$3,87105 Jun 19
Jack Abuhoff
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares3,852
Max PriceUS$1.01
BuyUS$37,40908 Jan 19
Nauman Toor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares24,939
Max PriceUS$1.50
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Luzich Partners
EntityCompany
Shares40,000
Max PriceUS$1.50
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Nauman Toor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,061
Max PriceUS$1.49
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Luzich Partners
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Max PriceUS$1.49
BuyUS$74,60028 Dec 18
Nauman Toor
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Role
Member of the Board of Directors
Director
Shares50,000
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Luzich Partners
EntityCompany
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Luzich Partners
EntityCompany
Shares57,921
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BuyUS$161,10011 Dec 18
Luzich Partners
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Shares90,000
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Nauman Toor
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Role
Member of the Board of Directors
Director
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Luzich Partners
EntityCompany
Shares10,110
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Luzich Partners
EntityCompany
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BuyUS$276,08716 Nov 18
Luzich Partners
EntityCompany
Shares195,488
Max PriceUS$1.46
BuyUS$39,60016 Nov 18
Nauman Toor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares30,000
Max PriceUS$1.32
BuyUS$14,55113 Nov 18
Luzich Partners
EntityCompany
Shares10,105
Max PriceUS$1.44
BuyUS$72,00013 Nov 18
Nauman Toor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max PriceUS$1.44
BuyUS$40,75401 Nov 18
Nauman Toor
EntityIndividual
Role
Member of the Board of Directors
Director
Shares29,110
Max PriceUS$1.40
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Luzich Partners
EntityCompany
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Ownership Breakdown


Management Team

  • Jack Abuhoff (58yo)

    Chairman

    • Tenure: 22.1yrs
    • Compensation: US$1.02m
  • R. Kemp

    Senior Vice President of Product Innovation

    • Tenure: 0yrs
  • Ashok Mishra (64yo)

    Executive VP & COO

    • Tenure: 12.8yrs
    • Compensation: US$564.76k
  • Amy Agress (54yo)

    Senior VP

    • Tenure: 21.8yrs
  • Kate McDonald

    Head of Aerospace & Defense Practice and Vice President

    • Tenure: 12.8yrs
  • Martin Lyster

    Chief Executive Officer of AgilityPR Solutions

    • Tenure: 0yrs
  • Rahul Singhal

    Chief Product Officer

    • Tenure: 0.8yrs
  • Robert O’Connor (57yo)

    CFO, Principal Financial Officer & Principal Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • Brian Kardon (61yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$39.28k
  • David Atkinson (66yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$39.28k
  • Jack Abuhoff (58yo)

    Chairman

    • Tenure: 22.1yrs
    • Compensation: US$1.02m
  • Doug Manoni (59yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$39.28k
  • Louise Forlenza (70yo)

    Independent Director

    • Tenure: 17yrs
    • Compensation: US$58.03k
  • Stewart Massey (62yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$60.03k
  • Nick Toor (50yo)

    Director

    • Tenure: 0.2yrs
  • Mike Opat (58yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$48.03k

Company Information

Innodata Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Innodata Inc.
  • Ticker: INOD
  • Exchange: NasdaqGM
  • Founded: 1988
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$34.776m
  • Shares outstanding: 25.95m
  • Website: https://www.innodata.com

Number of Employees


Location

  • Innodata Inc.
  • 55 Challenger Road
  • Suite 202
  • Ridgefield Park
  • New Jersey
  • 7660
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INODNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 1993
ID6DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1993

Biography

Innodata Inc. operates as a digital services and solution company worldwide. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility PR Solutions (Agility). The DDS  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:09
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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