Bought because of the strong profitability ratios
ROE : 68.82%
ROCE : 49.74%
ROTC: 55.25%
FCF growth: 434%
PEG <1
An overview with AI about the company:
Here's a comprehensive analysis from Innodata Inc:
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**Company overview and business model**
Innodata Inc. is a global data engineering company with a strong focus on artificial intelligence services. The company divides its activities into several segments:
- **Digital Data Solutions (DDS):** This segment offers essential services such as creating, collecting, annotating and providing training data for AI models. As AI applications are increasingly being used in a wide range of industries, this service is becoming considerably more important.
- Synodex:** The focus here is on the transformation of medical data sets into usable digital information. Proprietary data models are used to structure healthcare data, which is particularly valuable in the healthcare sector.
- Agility:** This segment supports customers with marketing and communication tasks. It provides solutions to disseminate content in a targeted manner and facilitate media monitoring.
This diversification strategically positions Innodata to cover both traditional and emerging markets while operating in a highly dynamic sector Stock Price & Overview - Stock Analysis](https://stockanalysis.com/stocks/inod/).
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**Financial performance and market data**
Current financial figures show that Innodata trades with a market capitalization of between approximately USD 1.16 and 1.21 billion. Sales for the last twelve months amount to around 202 million US dollars, while net profit is approximately 35 million US dollars. These figures point to a company that, while moderate in size and yield, is also operating in a growth environment that is particularly driven by the need for high-quality AI data.
It is noticeable that the share is currently trading in a price range of around USD 36 to 38. At the same time, the share price has fluctuated considerably - the 52-week price ranges from around USD 11.87 to USD 71, and a beta of around 2.75 underlines the higher volatility compared to the market as a whole. This signals that the risk potential is relatively pronounced Stock Price & Overview - Stock Analysis](https://stockanalysis.com/stocks/inod/) Stock Price, News & Analysis - MarketBeat](https://www.marketbeat.com/stocks/NASDAQ/INOD/).
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**Analyst opinions and price targets**
The analyst ratings for Innodata are consistently positive. Several valuation platforms and analysts emphasize that the company not only has solid fundamentals, but also shows significant growth potential.
- Price target:** Forecasts are often in the range of USD 55 to 57 - implying a potential upside of over 50% from the current price.
- Valuation:** Despite the high volatility and a relatively high P/E ratio (indicating future growth expectations), a Buy recommendation is generally issued. This assessment is based on the strong growth driver environment in the AI and data sector Stock Price & Overview - Stock Analysis](https://stockanalysis.com/stocks/inod/) Stock Price, News & Analysis - MarketBeat](https://www.marketbeat.com/stocks/NASDAQ/INOD/).
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**Industry outlook and strategic positioning**
The market for AI and data-based technologies is expanding rapidly. Companies like Innodata are benefiting from the following development:
- **Increasing demand for AI data:** Global demand for well-curated, annotated and managed datasets is increasing - a prerequisite for the development of powerful AI models.
- Diversification of services:** Innodata covers several strategically important segments through its parallel offering in the areas of healthcare data, digital data solutions and marketing communication.
- Competitive environment:** Despite the attractive growth prospects, Innodata operates in an intensely competitive environment. Price pressure, technological innovations and rapid market growth are factors that represent both opportunities and risks.
This strategic focus suggests that Innodata is well positioned to benefit from the increasing investments in AI and data management - at the same time, the company must continuously invest in innovation and the improvement of operational processes to ensure its competitiveness Stock Price & Overview - Stock Analysis](https://stockanalysis.com/stocks/inod/) Stock Price, News & Analysis - MarketBeat](https://www.marketbeat.com/stocks/NASDAQ/INOD/).
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**Conclusion**
Innodata Inc. presents itself as a company with solid fundamentals and attractive growth prospects in the expanding market for AI data preparation and processing. The positive analyst ratings and high price target forecasts underline the confidence in the future potential. Nevertheless, investors should not ignore the high volatility (beta approx. 2.75) and the associated risk. An investment in Innodata therefore offers opportunities for significant price gains - while at the same time taking into account the market risk.
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