NasdaqGM:INOD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: INOD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

INOD

-0.8%

US IT

-1.1%

US Market


1 Year Return

-21.8%

INOD

34.7%

US IT

17.8%

US Market

Return vs Industry: INOD underperformed the US IT industry which returned 34.7% over the past year.

Return vs Market: INOD underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

INODIndustryMarket
7 Day0.8%-0.8%-1.1%
30 Day-4.1%3.3%1.5%
90 Day-8.7%12.2%6.6%
1 Year-21.8%-21.8%36.1%34.7%20.2%17.8%
3 Year-49.3%-49.3%107.6%98.6%47.5%38.1%
5 Year-57.6%-57.6%144.9%123.2%71.2%52.4%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INOD ($1.14) is trading below our estimate of fair value ($4.64)

Significantly Below Fair Value: INOD is trading below fair value by more than 20%.


Price To Earnings Ratio

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 to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: INOD is good value based on its PB Ratio (1x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

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

18.3%

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?

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INOD is currently unprofitable.

Growing Profit Margin: INOD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: INOD is unprofitable, but has reduced losses over the past 5 years at a rate of 2.1% 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 (12%).


Return on Equity

High ROE: INOD has a negative Return on Equity (-6.22%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Innodata's financial position?


Financial Position Analysis

Short Term Liabilities: INOD's short term assets ($26.3M) exceed its short term liabilities ($15.6M).

Long Term Liabilities: INOD's short term assets ($26.3M) exceed its long term liabilities ($10.6M).


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: INOD's debt is covered by short term assets (assets are 1.4813465074328E+16x debt).


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, even with free cash flow being positive and shrinking by -2.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

13.1yrs

Average management tenure


CEO

Jack Abuhoff (58yo)

22.4yrs

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 ($USD1.02M) is above average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jack Abuhoff
Chairman22.4yrsUS$1.02m4.25% $1.2m
Ashok Mishra
Executive VP & COO13.1yrsUS$564.76k0.14% $39.4k
Robert O'Connor
CFO, Principal Financial Officer & Principal Accounting Officer0.8yrsno datano data
Amy Agress
Senior VP22.1yrsno datano data
Kate McDonald
Head of Aerospace & Defense Practice and Vice President13.1yrsno datano data
R. Kemp
Senior Vice President of Product Innovation0yrsno datano data
Rahul Singhal
Chief Product Officer1.1yrsno datano data
Martin Lyster
Chief Executive Officer of AgilityPR Solutions0yrsno datano data

13.1yrs

Average Tenure

57.5yo

Average Age

Experienced Management: INOD's management team is seasoned and experienced (13.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jack Abuhoff
Chairman22.4yrsUS$1.02m4.25% $1.2m
Brian Kardon
Independent Director1.8yrsUS$39.28kno data
David Atkinson
Independent Director1.8yrsUS$39.28k0.11% $30.8k
Douglas Manoni
Independent Director1.8yrsUS$39.28kno data
Louise Forlenza
Independent Director17.3yrsUS$58.03k0.12% $36.4k
Stewart Massey
Lead Independent Director0yrsUS$60.03k0.096% $28.0k
Nauman Toor
Director0.5yrsno data5.16% $1.5m
Michael Opat
Independent Director3.7yrsUS$48.03k0.038% $11.1k

1.8yrs

Average Tenure

60yo

Average Age

Experienced Board: INOD's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: INOD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$29.145m
  • Shares outstanding: 25.53m
  • 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 segment combines deep neural networks and human expertise to make unstructured information useable for various domains, including health, science, and law. The Synodex segment transforms medical records into useable digital data and applies technologies to the digital data to augment decision support. The Agility segment offers various tools and related professional services, such as content amplification solution, integrated newswire services, an influencer targeting solution to help PR professionals identify influencers, and media monitoring and analysis solution. This segment also provides media monitoring and PR measurement; and PR reporting and measurement services, including custom reports and PR measurement and social media/influencer analysis, as well as Bulldog Reporter, a publisher of PR-related news and a popular e-newsletter, and Bulldog Awards, a PR awards program that recognizes outstanding performance among PR and communications professionals and agencies. In addition, it provides various services, including acquisition, transformation, and digital data enrichment. In addition, the company offers digital operations management and analytics, such as IP rights, contract, publishing workflow, publisher relationship, and transaction management, as well as provides customer relations, data processing, and regulatory reporting services. Further, it develops and maintains content applications. The company serves banking and financial services, technology, digital retailing, healthcare, science, and insurance sector through its professional staff, senior management, and direct sales personnel. Innodata Inc. was founded in 1988 and is headquartered in Ridgefield Park, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:39
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.