INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis
USA - NASDAQ:ISSC - US45769N1054 - Common Stock
9.4 USD
+0.1 (+1.08%)
9.49 USD
+0.09 (+0.96%)
ISSC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. While ISSC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: ISSC is growing strongly while it also seems undervalued. With these ratings, ISSC could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
ISSC had positive earnings in the past year.
In the past year ISSC had a positive cash flow from operations.
ISSC had positive earnings in each of the past 5 years.
ISSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ISSC has a better Return On Assets (12.74%) than 97.14% of its industry peers.
ISSC's Return On Equity of 20.60% is amongst the best of the industry. ISSC outperforms 87.14% of its industry peers.
ISSC has a Return On Invested Capital of 15.91%. This is amongst the best in the industry. ISSC outperforms 97.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ISSC is above the industry average of 8.45%.
The last Return On Invested Capital (15.91%) for ISSC is above the 3 year average (12.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 20.6% | ||
| ROIC | 15.91% |
ROA(3y)11.33%
ROA(5y)12.11%
ROE(3y)16.2%
ROE(5y)16.18%
ROIC(3y)12.99%
ROIC(5y)11.85%
1.3 Margins
ISSC has a Profit Margin of 15.11%. This is amongst the best in the industry. ISSC outperforms 95.71% of its industry peers.
In the last couple of years the Profit Margin of ISSC has grown nicely.
ISSC has a better Operating Margin (20.93%) than 91.43% of its industry peers.
In the last couple of years the Operating Margin of ISSC has grown nicely.
ISSC's Gross Margin of 45.18% is amongst the best of the industry. ISSC outperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of ISSC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.93% | ||
| PM (TTM) | 15.11% | ||
| GM | 45.18% |
OM growth 3Y6.54%
OM growth 5Y18.64%
PM growth 3Y-12.27%
PM growth 5Y7.09%
GM growth 3Y-0.34%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ISSC is still creating some value.
ISSC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ISSC has more shares outstanding
Compared to 1 year ago, ISSC has a worse debt to assets ratio.
2.2 Solvency
ISSC has an Altman-Z score of 4.96. This indicates that ISSC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.96, ISSC is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of ISSC is 26.39, which is on the high side as it means it would take ISSC, 26.39 years of fcf income to pay off all of its debts.
ISSC's Debt to FCF ratio of 26.39 is in line compared to the rest of the industry. ISSC outperforms 50.00% of its industry peers.
ISSC has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.41, ISSC perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 26.39 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.72
WACC9.26%
2.3 Liquidity
A Current Ratio of 3.53 indicates that ISSC has no problem at all paying its short term obligations.
ISSC's Current ratio of 3.53 is fine compared to the rest of the industry. ISSC outperforms 75.71% of its industry peers.
ISSC has a Quick Ratio of 1.69. This is a normal value and indicates that ISSC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.69, ISSC is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
ISSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.92%, which is quite impressive.
ISSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.26% yearly.
Looking at the last year, ISSC shows a very strong growth in Revenue. The Revenue has grown by 72.82%.
Measured over the past years, ISSC shows a very strong growth in Revenue. The Revenue has been growing by 21.85% on average per year.
EPS 1Y (TTM)76.92%
EPS 3Y11.35%
EPS 5Y30.26%
EPS Q2Q%27.27%
Revenue 1Y (TTM)72.82%
Revenue growth 3Y27%
Revenue growth 5Y21.85%
Sales Q2Q%105.14%
3.2 Future
ISSC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.94% yearly.
Based on estimates for the next years, ISSC will show a very strong growth in Revenue. The Revenue will grow by 27.85% on average per year.
EPS Next Y33.73%
EPS Next 2Y28.63%
EPS Next 3Y33.94%
EPS Next 5YN/A
Revenue Next Year61.54%
Revenue Next 2Y36.41%
Revenue Next 3Y27.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.62, the valuation of ISSC can be described as correct.
ISSC's Price/Earnings ratio is rather cheap when compared to the industry. ISSC is cheaper than 98.57% of the companies in the same industry.
ISSC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
ISSC is valuated correctly with a Price/Forward Earnings ratio of 12.62.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ISSC indicates a rather cheap valuation: ISSC is cheaper than 94.29% of the companies listed in the same industry.
ISSC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ISSC indicates a rather cheap valuation: ISSC is cheaper than 98.57% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ISSC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 188.04 | ||
| EV/EBITDA | 9.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ISSC may justify a higher PE ratio.
A more expensive valuation may be justified as ISSC's earnings are expected to grow with 33.94% in the coming years.
PEG (NY)0.4
PEG (5Y)0.45
EPS Next 2Y28.63%
EPS Next 3Y33.94%
5. Dividend
5.1 Amount
No dividends for ISSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.4
+0.1 (+1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners40.57%
Inst Owner Change5.96%
Ins Owners6.61%
Ins Owner Change0%
Market Cap165.72M
Revenue(TTM)77.43M
Net Income(TTM)11.70M
Analysts85
Price Target15.86 (68.72%)
Short Float %5.68%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)73.63%
Min EPS beat(2)-8.5%
Max EPS beat(2)155.75%
EPS beat(4)2
Avg EPS beat(4)34.58%
Min EPS beat(4)-67.32%
Max EPS beat(4)155.75%
EPS beat(8)3
Avg EPS beat(8)14.1%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)40.74%
Min Revenue beat(2)30.33%
Max Revenue beat(2)51.15%
Revenue beat(4)4
Avg Revenue beat(4)34.88%
Min Revenue beat(4)27.96%
Max Revenue beat(4)51.15%
Revenue beat(8)5
Avg Revenue beat(8)18.17%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)42.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.5%
EPS NY rev (1m)0%
EPS NY rev (3m)7.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)14.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 12.62 | ||
| P/S | 2.14 | ||
| P/FCF | 188.04 | ||
| P/OCF | 15.37 | ||
| P/B | 2.92 | ||
| P/tB | 6.39 | ||
| EV/EBITDA | 9.57 |
EPS(TTM)0.69
EY7.34%
EPS(NY)0.74
Fwd EY7.92%
FCF(TTM)0.05
FCFY0.53%
OCF(TTM)0.61
OCFY6.51%
SpS4.39
BVpS3.22
TBVpS1.47
PEG (NY)0.4
PEG (5Y)0.45
Graham Number7.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.74% | ||
| ROE | 20.6% | ||
| ROCE | 20.13% | ||
| ROIC | 15.91% | ||
| ROICexc | 16.03% | ||
| ROICexgc | 26.1% | ||
| OM | 20.93% | ||
| PM (TTM) | 15.11% | ||
| GM | 45.18% | ||
| FCFM | 1.14% |
ROA(3y)11.33%
ROA(5y)12.11%
ROE(3y)16.2%
ROE(5y)16.18%
ROIC(3y)12.99%
ROIC(5y)11.85%
ROICexc(3y)21.12%
ROICexc(5y)19.29%
ROICexgc(3y)25.94%
ROICexgc(5y)22.23%
ROCE(3y)16.44%
ROCE(5y)15.01%
ROICexgc growth 3Y-1.78%
ROICexgc growth 5Y15.86%
ROICexc growth 3Y-18.49%
ROICexc growth 5Y3.46%
OM growth 3Y6.54%
OM growth 5Y18.64%
PM growth 3Y-12.27%
PM growth 5Y7.09%
GM growth 3Y-0.34%
GM growth 5Y-0.52%
F-Score5
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 26.39 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 284.02% | ||
| Cap/Sales | 12.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.74% | ||
| Profit Quality | 7.53% | ||
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 4.96 |
F-Score5
WACC9.26%
ROIC/WACC1.72
Cap/Depr(3y)106.64%
Cap/Depr(5y)85.38%
Cap/Sales(3y)3.94%
Cap/Sales(5y)2.77%
Profit Quality(3y)49.99%
Profit Quality(5y)59.45%
High Growth Momentum
Growth
EPS 1Y (TTM)76.92%
EPS 3Y11.35%
EPS 5Y30.26%
EPS Q2Q%27.27%
EPS Next Y33.73%
EPS Next 2Y28.63%
EPS Next 3Y33.94%
EPS Next 5YN/A
Revenue 1Y (TTM)72.82%
Revenue growth 3Y27%
Revenue growth 5Y21.85%
Sales Q2Q%105.14%
Revenue Next Year61.54%
Revenue Next 2Y36.41%
Revenue Next 3Y27.85%
Revenue Next 5YN/A
EBIT growth 1Y81.14%
EBIT growth 3Y35.31%
EBIT growth 5Y44.57%
EBIT Next Year87%
EBIT Next 3Y42%
EBIT Next 5YN/A
FCF growth 1Y100.3%
FCF growth 3Y-40.64%
FCF growth 5Y-15.22%
OCF growth 1Y1667.46%
OCF growth 3Y8.09%
OCF growth 5Y22.4%
INNOVATIVE SOLUTIONS & SUPP / ISSC FAQ
Can you provide the ChartMill fundamental rating for INNOVATIVE SOLUTIONS & SUPP?
ChartMill assigns a fundamental rating of 7 / 10 to ISSC.
Can you provide the valuation status for INNOVATIVE SOLUTIONS & SUPP?
ChartMill assigns a valuation rating of 7 / 10 to INNOVATIVE SOLUTIONS & SUPP (ISSC). This can be considered as Undervalued.
Can you provide the profitability details for INNOVATIVE SOLUTIONS & SUPP?
INNOVATIVE SOLUTIONS & SUPP (ISSC) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ISSC stock?
The Price/Earnings (PE) ratio for INNOVATIVE SOLUTIONS & SUPP (ISSC) is 13.62 and the Price/Book (PB) ratio is 2.92.
What is the financial health of INNOVATIVE SOLUTIONS & SUPP (ISSC) stock?
The financial health rating of INNOVATIVE SOLUTIONS & SUPP (ISSC) is 5 / 10.