| 2017 | 2018 | 2019 | 2020 (projected) | Current Assets | 25.33 M | 26.16 M | 24.02 M | 27.47 M | Total Assets | 47.87 M | 44.94 M | 49.75 M | 48.29 M |
Should you exit Innodata (NASDAQ:INOD) after the latest volatility surge?
 | By Raphi Shpitalnik | Macroaxis Story |
83% of stocks are less volatile than Innodata, and 70% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. Although many risk-takers are getting more into technology space, some of us are not very happy with Innodata's current volatility. What exactly are Innodata shareholders getting in December?
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Reviewed by Rifka Kats
Innodata currently holds roughly 13.48 M in cash with 4.92 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.55. Innodata holds a performance score of 12 on a scale of zero to a hundred. The company retains a Market Volatility (i.e. Beta) of 0.7284, which attests to possible diversification benefits within a given portfolio. Let's try to break down what Innodata's beta means in this case. As returns on the market increase, Innodata returns are expected to increase less than the market. However, during the bear market, the loss on holding Innodata will be expected to be smaller as well. Although it is essential to pay attention to Innodata current price history, it is also good to be reasonable about what you can do with equity current price movements. Our philosophy towards determining future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Innodata expected return of 1.68 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Innodata sortino ratio, skewness, price action indicator, as well as the relationship between the potential upside and rate of daily change to analyze future returns on Innodata. Volatility is a rate at which the price of Innodata or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Innodata may increase or decrease. In other words, similar to Innodata's beta indicator, it measures the risk of Innodata and helps estimate the fluctuations that may happen in a short period of time. So if prices of Innodata fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Innodata's Liquidity
Innodata financial leverage refers to using borrowed capital as a funding source to finance Innodata ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Innodata financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Innodata's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Innodata's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Innodata's total debt and its cash.
Innodata Gross Profit
Innodata Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Innodata previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Innodata Gross Profit growth over the last 10 years. Please check Innodata's gross profit and other fundamental indicators for more details.
Innodata Volatility Drivers
Innodata unsystematic risk is unique to Innodata and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Innodata you can also buy CSP Inc. You can also mitigate this risk by investing in the information technology sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Innodata important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Innodata income statement and balance sheet. Here are more details about Innodata volatility.Click cells to compare fundamentals
A Deeper look at Innodata
The company reported the previous year's revenue of 56.92 M. Net Loss for the year was (1.42 M) with profit before overhead, payroll, taxes, and interest of 21.04 M.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Innodata. Please refer to our Terms of Use for any information regarding our disclosure principles.