Stock fact sheet · data as of
Innodata Inc. (INOD): fair value, margin of safety and Wheel Score
Technology · Information Technology Services · United States · High Growth
Is INOD undervalued?
At 56.57 (close of 16 Oct 2026), INOD trades within a few percent of the GLS average fair value of 57.61 (1.8% below fair value). 7 models produced a value and they split 3 above the price to 4 below. A stock priced at fair value earns about half of the Wheel Score's Value points; the rest of the score comes from health, moat, premium and stability.
The 7 models disagree widely: Lynch gives 0.3802 while 10 Cap gives 140.41. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files INOD under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for INOD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 12.21 | -78% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 12.29 | -78% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.3802 | -99% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 85.03 | +50% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 140.41 | +148% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 137.50 | +143% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 15.43 | -73% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 2.15 | -96% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 120.00 | +112% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - INOD passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.7 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 28.9%, ROE 30.1%, ROA 19.1% - with debt at 0.04 times equity and a free-cash-flow yield of 11.2%.
Innodata Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Operating Segments 100% (quarter Q2 FY2026).
Institutional ownership scores 8/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 28.9% |
|---|---|---|---|
| GLS Moat | 5.7 / 10 | ROE | 30.1% |
| Debt / equity | 0.04 | ROA | 19.1% |
| Free-cash-flow yield | 11.2% | Payout ratio | 0% |
| Institutions | 8 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 53: Fair
INOD scores 53 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 13/25, Health 11/20, Moat 9/15, Premium 10/20, Stability 10/20. Premium (10/20) is where the points are missing.
Implied volatility is 98% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (10 of 20) because volatility this high usually comes with a reason. The option chain is deep: 67,908 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 1.3M shares a day on a market cap of $1.9B, with a beta of 2.98 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 13 / 25 | 2% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 9 / 15 | moat 5.7/10 | |
| Premium | 10 / 20 | implied volatility 98% | |
| Stability | 10 / 20 | 1.3M shares/day, $1.9B cap, beta 2.98 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (after the close), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Information Technology Services
The 12 companies below are the closest to Innodata Inc. by market cap within the Information Technology Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DXC DXC Technology Company | 13.79 | 69.49 | +80% | 76Good | $2.2B |
| GLOB Globant S.A. | 39.23 | 72.41 | +46% | 82Prime | $1.7B |
| CNXC Concentrix Corporation | 27.67 | 190.69 | +85% | 45Weak | $1.7B |
| EFOR Everforth, Inc. | 39.52 | 75.02 | +47% | 70Good | $1.6B |
| KEEL Keel Infrastructure Corp. | 2.57 | - | - | 39Weak | $1.6B |
| MGRT Mega Fortune Company Limited | 104.05 | 0.5498 | -18825% | 10No options | $1.4B |
| KD Kyndryl Holdings, Inc. | 13.19 | 90.61 | +85% | 87Prime | $2.9B |
| VNET VNET Group, Inc. | 4.49 | - | - | 45Weak | $1.3B |
| BBAI BigBear.ai Holdings, Inc. | 2.33 | - | - | 45Weak | $1.1B |
| CLVT Clarivate Plc | 1.74 | 12.42 | +86% | 45Weak | $1.1B |
| SHAZ SharonAI Holdings, Inc. Class A Common Stock | 31.00 | - | - | 36Weak | $1.1B |
| VYX NCR Voyix Corporation | 6.88 | 7.35 | +6% | 61Fair | $950M |
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Start free See the Sunday ScanQuestions about INOD
Is INOD undervalued right now?
Not meaningfully: at 56.57 the stock trades within a few percent of the GLS average fair value of 57.61 (1.8% below fair value, data as of 16 Oct 2026).
What is the Wheel Score of INOD and what does it mean?
INOD scores 53 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for INOD?
57.61 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Innodata Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (after the close), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does INOD have listed options, and how liquid are they?
Yes. The nightly snapshot found 924 listed contracts with 67,908 open interest across all expiries and implied volatility of 98% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.