Innodata (NASDAQ:INOD) continues to surge

Innodata Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 2.22 Million. The current year Average Equity is expected to grow to about 32.3 M, whereas Invested Capital is forecasted to decline to about 22.5 M. As some conservative investors are getting more into technology space, Innodata could be a your radar. I will take a closer look at this stock and the latest sentiment generated by shareholders. In this post, I will also go over a few different drivers affecting Innodata's products and services, and explain how it may impact Innodata shareholders.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

We provide advice to complement the regular expert consensus on Innodata. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
The performance of Innodata in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Innodata's stock prices. When investing in Innodata, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Innodata Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Innodata carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

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.

A Deeper look at Innodata

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Innodata has an asset utilization ratio of 112.46 percent. This indicates that the company is making $1.12 for each dollar of assets. An increasing asset utilization means that Innodata is more efficient with each dollar of assets it utilizes for everyday operations.

Can Innodata build up on the latest surge?

The treynor ratio is down to 0.14 as of today. Innodata exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Innodata individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Innodata future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Innodata's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Innodata's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Innodata

Although some companies under the information technology services industry are still a bit expensive, Innodata may offer a potential longer-term growth to shareholders. The bottom line, as of the 11th of March 2021, we believe that at this point, Innodata is relatively risky with very low chance of financial distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our current 30 days 'Buy-Sell' recommendation on the firm is Sell.

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Editorial Staff

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.

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