I still view Innodata as fundamentally very strong, but I don't consider it a clear buy at this point.
Q2 saw 58% revenue growth, 92% EBITDA growth, a 49% adjusted gross margin, and the balance sheet is virtually debt-free with approximately $250 million in cash.
So the company is growing exceptionally well.
However, the risks are not insignificant:
About 71% of revenue comes from just two customers, a share sale program of up to $300 million poses a dilution risk, and the valuation remains high at a forward P/E ratio of around 45.
From a technical perspective, the stock is also still below the 50-week moving average, the MACD is negative, and a true bottom has not yet been confirmed.
My traffic light:
Fundamentals 🟢
Valuation 🟡
Chart 🟠
– Overall, currently WAIT.
I would rather wait for the stock to stabilize or retake the $60–62 range than continue buying simply because the price is significantly lower.
Q2 saw 58% revenue growth, 92% EBITDA growth, a 49% adjusted gross margin, and the balance sheet is virtually debt-free with approximately $250 million in cash.
So the company is growing exceptionally well.
However, the risks are not insignificant:
About 71% of revenue comes from just two customers, a share sale program of up to $300 million poses a dilution risk, and the valuation remains high at a forward P/E ratio of around 45.
From a technical perspective, the stock is also still below the 50-week moving average, the MACD is negative, and a true bottom has not yet been confirmed.
My traffic light:
Fundamentals 🟢
Valuation 🟡
Chart 🟠
– Overall, currently WAIT.
I would rather wait for the stock to stabilize or retake the $60–62 range than continue buying simply because the price is significantly lower.
•
55
•
1Mês
@Raketentoni Thanks for your opinion. Yeah, I just see this as a good opportunity for me, at around 50, to lower my cost basis. That’s fine by me. If it goes any lower, I’ll just end up with more shares.
•
11
•