Overall INOD gets a fundamental rating of 6 out of 10. We evaluated INOD against 88 industry peers in the Professional Services industry. INOD has an excellent financial health rating, but there are some minor concerns on its profitability. INOD shows excellent growth, but is valued quite expensive already. These ratings would make INOD suitable for growth investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

INOD had positive earnings in the past year.
INOD had a positive operating cash flow in the past year.
In multiple years INOD reported negative net income over the last 5 years.
INOD had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 22.00%, INOD belongs to the top of the industry, outperforming 98.86% of the companies in the same industry.
INOD has a better Return On Equity (34.57%) than 89.77% of its industry peers.
INOD has a Return On Invested Capital of 29.30%. This is amongst the best in the industry. INOD outperforms 97.73% of its industry peers.

		Industry Rank	Sector Rank
ROA	22%
ROE	34.57%
ROIC	29.3%

ROA(3y)-0.37%

ROA(5y)-0.57%

ROE(3y)-7.33%

ROE(5y)-5.1%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin of INOD (14.11%) is better than 84.09% of its industry peers.
INOD has a better Operating Margin (16.86%) than 81.82% of its industry peers.
With a Gross Margin value of 41.32%, INOD perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
INOD's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	16.86%
PM (TTM)	14.11%
GM	41.32%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.49%

GM growth 5Y3.47%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so INOD is creating value.
The number of shares outstanding for INOD has been increased compared to 1 year ago.
The number of shares outstanding for INOD has been increased compared to 5 years ago.
INOD has a better debt/assets ratio than last year.

2.2 Solvency

INOD has an Altman-Z score of 24.28. This indicates that INOD is financially healthy and has little risk of bankruptcy at the moment.
INOD's Altman-Z score of 24.28 is amongst the best of the industry. INOD outperforms 98.86% of its industry peers.
The Debt to FCF ratio of INOD is 0.21, which is an excellent value as it means it would take INOD, only 0.21 years of fcf income to pay off all of its debts.
INOD has a better Debt to FCF ratio (0.21) than 86.36% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that INOD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, INOD is in the better half of the industry, outperforming 69.32% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.08
Debt/FCF	0.21
Altman-Z	24.28

ROIC/WACC3.31

WACC8.85%

2.3 Liquidity

A Current Ratio of 2.69 indicates that INOD has no problem at all paying its short term obligations.
The Current ratio of INOD (2.69) is better than 85.23% of its industry peers.
INOD has a Quick Ratio of 2.69. This indicates that INOD is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.69, INOD belongs to the best of the industry, outperforming 85.23% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.69
Quick Ratio	2.69

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

INOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.41%, which is quite impressive.
The Revenue has grown by 73.57% in the past year. This is a very strong growth!
INOD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.00% yearly.

EPS 1Y (TTM)64.41%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-52.94%

Revenue 1Y (TTM)73.57%

Revenue growth 3Y34.69%

Revenue growth 5Y25%

Sales Q2Q%19.77%

3.2 Future

The Earnings Per Share is expected to grow by 15.98% on average over the next years. This is quite good.
Based on estimates for the next years, INOD will show a very strong growth in Revenue. The Revenue will grow by 23.97% on average per year.

EPS Next Y4.76%

EPS Next 2Y15.94%

EPS Next 3Y15.98%

EPS Next 5YN/A

Revenue Next Year51.42%

Revenue Next 2Y38.09%

Revenue Next 3Y23.97%

Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 61.36, the valuation of INOD can be described as expensive.
INOD's Price/Earnings ratio is a bit more expensive when compared to the industry. INOD is more expensive than 63.64% of the companies in the same industry.
INOD is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 52.09 indicates a quite expensive valuation of INOD.
Based on the Price/Forward Earnings ratio, INOD is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, INOD is valued quite expensively.

		Industry Rank	Sector Rank
PE	61.36
Fwd PE	52.09

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, INOD is valued a bit more expensive than the industry average as 65.91% of the companies are valued more cheaply.
INOD's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	46.6
EV/EBITDA	40.03

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of INOD may justify a higher PE ratio.
A more expensive valuation may be justified as INOD's earnings are expected to grow with 15.98% in the coming years.