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INODInnodata Inc.
$68.88$2.2B
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  4. Financial Ratios

Innodata Inc. (INOD) Financial Ratios

Latest Ratios: P/E Ratio 74.9x · EV/EBITDA 46.1x · ROE 37.8%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

INOD Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$2.2B$1.8B$1.3B$229M$81M$158M$136M$29M$39M$35M$63M
Enterprise Value$2.2B$1.7B$1.2B$221M$76M$145M$125M$32M$34M$30M$53M
P/E Ratio →74.8755.3844.40———219.92—7500.00——
P/S Ratio8.947.097.462.641.022.262.330.530.680.580.99
P/B Ratio22.5316.6720.069.164.485.975.161.331.431.292.08
P/FCF63.1050.0646.62675.48—201.3431.9211.2424.71——
P/OCF48.1138.1736.3238.79—30.6123.956.8710.7747.57—

P/E links to full P/E history page with 30-year chart

INOD EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—6.787.212.540.962.082.150.570.580.500.85
EV / EBITDA46.0936.2340.9939.02—109.3936.3616.795.54——
EV / EBIT53.9941.2050.21693.91——106.17—21.03——
EV / FCF—47.8845.08650.92—185.2629.5112.1721.35——

INOD Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin39.7%39.7%39.3%36.8%35.0%37.6%34.1%33.4%32.3%25.7%25.5%
Operating Margin16.0%16.0%14.2%1.1%-13.0%-2.2%2.0%-1.4%4.7%-7.6%-5.1%
Net Profit Margin12.8%12.8%16.8%-1.0%-15.1%-2.4%1.1%-3.8%-0.4%-8.3%-8.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE37.8%37.8%64.9%-4.2%-53.7%-6.4%2.6%-8.7%-0.9%-17.6%-17.0%
ROA22.8%22.8%33.2%-1.7%-22.3%-2.9%1.2%-4.5%-0.5%-10.6%-11.2%
ROIC119.7%119.7%95.9%4.7%-57.5%-7.8%4.4%-2.6%9.1%-16.1%-13.5%
ROCE41.9%41.9%43.8%2.9%-31.6%-4.0%3.2%-2.5%8.4%-13.9%-8.8%

INOD Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.040.040.070.220.260.240.280.600.210.240.17
Debt / EBITDA0.090.090.160.97—4.762.127.010.92——
Net Debt / Equity—-0.73-0.67-0.33-0.28-0.48-0.390.11-0.19-0.18-0.30
Net Debt / EBITDA-1.65-1.65-1.41-1.47—-9.50-2.971.27-0.87——
Debt / FCF—-2.18-1.55-24.55—-16.08-2.410.92-3.36——
Interest Coverage———1.78——8.74-7.9048.33—-74.95

Net cash position: cash ($82M) exceeds total debt ($4M)

INOD Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.682.682.051.401.141.591.741.521.911.622.12
Quick Ratio2.682.682.051.401.141.591.741.521.911.622.12
Cash Ratio1.631.631.190.600.490.890.960.690.760.731.10
Asset Turnover—1.491.501.461.641.181.021.131.251.271.33
Inventory Turnover———————————
Days Sales Outstanding—67.4659.9860.1044.0259.5462.9763.5367.5561.6557.59

INOD Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield1.3%1.8%2.3%———0.5%—0.0%——
FCF Yield1.6%2.0%2.1%0.1%—0.5%3.1%8.9%4.0%——
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%6.3%0.0%0.0%0.2%
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%6.3%0.0%0.0%0.2%
Shares Outstanding—$35M$32M$28M$27M$27M$26M$26M$26M$26M$26M

Key Metrics

Growth RegimeAccelerating
ProfitabilityModerate
Balance SheetHealthy
Cash FlowRobust
Top Statement Risk

Hyperscaler revenue concentration risk

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Premium Valuation Reflects Growth Expectations

According to current market data, INOD trades at a forward P/E of 68.46, a multiple that suggests investors are pricing in aggressive long-term growth expectations that significantly exceed the valuation multiples of traditional BPO peers like ExlService Holdings or Donnelley Financial.

The current P/S ratio of 9.59 indicates that the market has reclassified the company from a legacy service provider to an AI infrastructure play. This valuation premium warrants caution, as it implies that the recent revenue acceleration is a permanent shift in the business model rather than a cyclical surge in AI-related data preparation demand.

Capital Efficiency Gains Driving Returns

Based on reported financial statements, INOD's ROIC has expanded from 9.9% in 2023Q4 to 55.0% in 2026Q1, demonstrating a significant improvement in the company's ability to generate returns on its invested capital as it scales its specialized data engineering workflows.

This rapid improvement in capital efficiency suggests that the company's proprietary AI-enabled tools are successfully augmenting human labor, allowing for higher output without proportional increases in capital intensity. Investors should monitor whether this high level of return on capital is sustainable as the company continues to scale its workforce to meet hyperscaler demand.

Working Capital Dynamics and Turnover

As reported in recent filings, INOD's asset turnover ratio reached 0.48 in 2026Q1, reflecting a modest improvement from historical lows and indicating that the company is becoming more effective at utilizing its growing asset base to generate revenue.

The DSO trend, which fluctuated between 36 and 55 days over the last ten quarters, suggests that the company maintains reasonable control over its receivables despite the lumpy nature of large-scale AI contracts. Continued monitoring of the cash conversion cycle is essential to ensure that the company's rapid growth does not lead to a deterioration in working capital efficiency.

Misapplication of Traditional BPO Metrics

Analysts frequently misapply traditional BPO valuation metrics, such as EV/EBITDA, to INOD, which obscures the company's transition toward a high-margin, tech-enabled service model that warrants a different valuation framework than commoditized, labor-heavy outsourcing firms.

Using standard BPO multiples fails to account for the proprietary nature of Innodata's data engineering workflows and the potential for software-like scalability. Investors should instead focus on metrics that capture the value of the company's intellectual property and the stickiness of its multi-year managed services contracts.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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INOD — Frequently Asked Questions

Quick answers to the most common questions about buying INOD stock.

What is Innodata Inc.'s P/E ratio?

Innodata Inc.'s current P/E ratio is 74.9x. The historical average is 27.2x. This places it at the 100th percentile of its historical range.

What is Innodata Inc.'s EV/EBITDA?

Innodata Inc.'s current EV/EBITDA is 46.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.1x.

What is Innodata Inc.'s ROE?

Innodata Inc.'s return on equity (ROE) is 37.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 2.4%.

Is INOD stock overvalued?

Based on historical data, Innodata Inc. is trading at a P/E of 74.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are Innodata Inc.'s profit margins?

Innodata Inc. has 39.7% gross margin and 16.0% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Innodata Inc. have?

Innodata Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.