Innodata Inc. Common Stock (INOD)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for a business whose economics are improving and whose balance sheet won't force it into a bad decision. Innodata, at $58.38 on 2026-10-13, markets at $2.0B, is a data engineering company serving AI training and related work. The filed numbers show real momentum: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $92.1M and net income $14.4M, up from fiscal Q2 2025 revenue $58.4M and net income $7.2M. For FY2025, revenue $251.7M and net income $32.2M, versus FY2024 revenue $170.5M and net income $28.7M. It returned to profit after a FY2023 net loss of $908,000, so FairStock tags it a TURNAROUND. Financial health is a strength: FairStock shows ROE 37.77%, ROCE 14.17%, debt/equity 0.02, Altman Z 7.28, and TTM FCF $183.8M, a 9.2% FCF yield. But quality and price are different matters. FairStock's P/E is 45.26, P/B 12.58, EV/EBITDA 27.82, Graham Number $11.60, and margin of safety -403.28%. The stock is not cheap by Graham's asset or earnings tests. Revenue growth is 22.30%, but profit growth is -14.21%, and beta 2.88 suggests a volatile ride. Piotroski 5/9 is middling. The moat is not proven by these figures; revenue growth has raced ahead while profit growth is negative. I would need more evidence that today's growth converts into durable owner earnings. Great business momentum, speculative price.

In plain English: Innodata is a company that helps other businesses get data ready for artificial intelligence. Its sales and profits have grown quickly, it uses very little debt, and it produces a lot of cash. But the stock price is much higher than what its earnings and assets alone would suggest, so it looks expensive rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer