MeritValue

INNODATA INC

INODdata completeness 88%17 fiscal years on file
The thesis, from the filings

INNODATA INC earns about 47% on invested capital, far above its ~9% cost of capital, but has diluted owners by 32% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $27.6 and $48.53 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$69.8M1$79M2$86.8M3$170.5M4$251.7M4
Net income−$1.67M5−$11.9M6−$908,0007$28.7M8$32.2M8
Operating cash flow$5.15M9−$1.22M10$5.9M11$34.9M12$46.8M12
Capital expenditure$4.37M13$6.53M14$5.56M15$7.74M16$11.1M16
Free cash flow (derived)$783,0009−$7.74M10$339,00011$27.1M12$35.6M12
Total debt$15M17$11.9M17———
Cash & equivalents$18.9M18$9.79M19$13.8M20$46.9M21$82.2M21
Diluted shares26.6M27,27828.1M32.2M35.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$30.59
your share of equity
Profit it earned you last year
$9.19
Free cash flow it threw off
$10.18
Debt you’d be carrying
—

10 shares is a claim on $30.59 of net worth that earned you $9.19 and generated $10.18 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
47% avg · 5y
FY21 -3%FY22 -40%FY23 1%FY24 148%FY25 129%

It earned about 47% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+32% shares · 5y

Share count is up 32% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 21% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $27.6 and $48.53 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$48.53
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$27.1M
DCF · Growth Exit 5Y
$27.6
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$27.1M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$7.96
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $27.6
The three cases
Bear0.0%$13.41
Base20.0%$27.6
Bull20.0%$27.6

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001410578-23-000153 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001410578-24-000124 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001410578-25-000194 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001104659-26-020655 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001410578-23-000153 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001410578-24-000124 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001410578-25-000194 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001104659-26-020655 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001410578-23-000153 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001410578-24-000124 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001410578-25-000194 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001104659-26-020655 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001410578-23-000153 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001410578-24-000124 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001410578-25-000194 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001104659-26-020655 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001410578-23-000153 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2021-12-31 · accession 0001410578-23-000153 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-12-31 · accession 0001410578-24-000124 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-12-31 · accession 0001410578-25-000194 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2024-12-31 · accession 0001104659-26-020655 (CashAndCashEquivalentsAtCarryingValue)