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INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis

NASDAQ:ISSC - Nasdaq - US45769N1054 - Common Stock - Currency: USD

12.64  +0.33 (+2.68%)

After market: 12.64 0 (0%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to ISSC. ISSC was compared to 65 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. ISSC is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes ISSC very considerable for growth investing!


Dividend Valuation Growth Profitability Health

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9

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.
In the past 5 years ISSC always reported a positive cash flow from operatings.
ISSC Yearly Net Income VS EBIT VS OCF VS FCFISSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M

1.2 Ratios

With an excellent Return On Assets value of 12.02%, ISSC belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
ISSC has a Return On Equity of 20.19%. This is amongst the best in the industry. ISSC outperforms 89.23% of its industry peers.
ISSC has a better Return On Invested Capital (14.30%) than 93.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ISSC is above the industry average of 8.39%.
The last Return On Invested Capital (14.30%) for ISSC is above the 3 year average (12.99%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 12.02%
ROE 20.19%
ROIC 14.3%
ROA(3y)11.33%
ROA(5y)12.11%
ROE(3y)16.2%
ROE(5y)16.18%
ROIC(3y)12.99%
ROIC(5y)11.85%
ISSC Yearly ROA, ROE, ROICISSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

The Profit Margin of ISSC (16.61%) is better than 93.85% of its industry peers.
In the last couple of years the Profit Margin of ISSC has grown nicely.
With an excellent Operating Margin value of 22.64%, ISSC belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
ISSC's Operating Margin has improved in the last couple of years.
ISSC has a better Gross Margin (50.24%) than 87.69% 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 RankSector Rank
OM 22.64%
PM (TTM) 16.61%
GM 50.24%
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%
ISSC Yearly Profit, Operating, Gross MarginsISSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ISSC is creating some value.
Compared to 1 year ago, ISSC has more shares outstanding
Compared to 5 years ago, ISSC has more shares outstanding
The debt/assets ratio for ISSC is higher compared to a year ago.
ISSC Yearly Shares OutstandingISSC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
ISSC Yearly Total Debt VS Total AssetsISSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

2.2 Solvency

An Altman-Z score of 5.57 indicates that ISSC is not in any danger for bankruptcy at the moment.
ISSC has a better Altman-Z score (5.57) than 69.23% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that ISSC is somewhat dependend on debt financing.
ISSC has a Debt to Equity ratio (0.51) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Altman-Z 5.57
ROIC/WACC1.45
WACC9.88%
ISSC Yearly LT Debt VS Equity VS FCFISSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M 20M 30M 40M

2.3 Liquidity

ISSC has a Current Ratio of 4.87. This indicates that ISSC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.87, ISSC belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
A Quick Ratio of 2.66 indicates that ISSC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.66, ISSC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.87
Quick Ratio 2.66
ISSC Yearly Current Assets VS Current LiabilitesISSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M

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9

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 83.33% over the past year.
Measured over the past years, ISSC shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.26% on average per year.
The Revenue has grown by 58.67% in the past year. This is a very strong growth!
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)83.33%
EPS 3Y11.35%
EPS 5Y30.26%
EPS Q2Q%328.57%
Revenue 1Y (TTM)58.67%
Revenue growth 3Y27%
Revenue growth 5Y21.85%
Sales Q2Q%104.25%

3.2 Future

Based on estimates for the next years, ISSC will show a very strong growth in Earnings Per Share. The EPS will grow by 22.45% on average per year.
Based on estimates for the next years, ISSC will show a very strong growth in Revenue. The Revenue will grow by 20.61% on average per year.
EPS Next Y12.2%
EPS Next 2Y24.15%
EPS Next 3Y22.45%
EPS Next 5YN/A
Revenue Next Year40.92%
Revenue Next 2Y29.28%
Revenue Next 3Y20.61%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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.
ISSC Yearly Revenue VS EstimatesISSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20M 40M 60M 80M
ISSC Yearly EPS VS EstimatesISSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2018 2019 2020 2021 2023 2024 2025 2026 2027 0 0.2 0.4 0.6 0.8

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5

4. Valuation

4.1 Price/Earnings Ratio

ISSC is valuated rather expensively with a Price/Earnings ratio of 19.15.
Compared to the rest of the industry, the Price/Earnings ratio of ISSC indicates a rather cheap valuation: ISSC is cheaper than 90.77% of the companies listed in the same industry.
ISSC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 18.22, ISSC is valued on the expensive side.
84.62% of the companies in the same industry are more expensive than ISSC, based on the Price/Forward Earnings ratio.
ISSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
Industry RankSector Rank
PE 19.15
Fwd PE 18.22
ISSC Price Earnings VS Forward Price EarningsISSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ISSC is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.48
ISSC Per share dataISSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

ISSC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ISSC has an outstanding profitability rating, which may justify a higher PE ratio.
ISSC's earnings are expected to grow with 22.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.57
PEG (5Y)0.63
EPS Next 2Y24.15%
EPS Next 3Y22.45%

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0

5. Dividend

5.1 Amount

No dividends for ISSC!.
Industry RankSector Rank
Dividend Yield N/A

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INNOVATIVE SOLUTIONS & SUPP

NASDAQ:ISSC (6/13/2025, 8:11:43 PM)

After market: 12.64 0 (0%)

12.64

+0.33 (+2.68%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)05-14 2025-05-14/amc
Earnings (Next)08-07 2025-08-07
Inst Owners38.95%
Inst Owner Change17.47%
Ins Owners6.62%
Ins Owner Change2.79%
Market Cap222.46M
Analysts85
Price Target11.17 (-11.63%)
Short Float %1.36%
Short Ratio1.26
Dividend
Industry RankSector 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)44.22%
Min EPS beat(2)-67.32%
Max EPS beat(2)155.75%
EPS beat(4)2
Avg EPS beat(4)34.17%
Min EPS beat(4)-67.32%
Max EPS beat(4)155.75%
EPS beat(8)4
Avg EPS beat(8)16.67%
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)39.56%
Min Revenue beat(2)27.96%
Max Revenue beat(2)51.15%
Revenue beat(4)3
Avg Revenue beat(4)26.54%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)51.15%
Revenue beat(8)5
Avg Revenue beat(8)15.42%
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)1.86%
PT rev (3m)1.86%
EPS NQ rev (1m)25%
EPS NQ rev (3m)25%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.48%
Revenue NQ rev (1m)19.24%
Revenue NQ rev (3m)19.24%
Revenue NY rev (1m)13.94%
Revenue NY rev (3m)13.94%
Valuation
Industry RankSector Rank
PE 19.15
Fwd PE 18.22
P/S 3.42
P/FCF N/A
P/OCF 49.34
P/B 4.16
P/tB 10.06
EV/EBITDA 13.48
EPS(TTM)0.66
EY5.22%
EPS(NY)0.69
Fwd EY5.49%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)0.26
OCFY2.03%
SpS3.7
BVpS3.04
TBVpS1.26
PEG (NY)1.57
PEG (5Y)0.63
Profitability
Industry RankSector Rank
ROA 12.02%
ROE 20.19%
ROCE 18.1%
ROIC 14.3%
ROICexc 14.52%
ROICexgc 23.87%
OM 22.64%
PM (TTM) 16.61%
GM 50.24%
FCFM N/A
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%
ROICexcg growth 3Y-1.78%
ROICexcg 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 Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Debt/EBITDA 1.52
Cap/Depr 195.81%
Cap/Sales 9.86%
Interest Coverage 250
Cash Conversion 25.04%
Profit Quality N/A
Current Ratio 4.87
Quick Ratio 2.66
Altman-Z 5.57
F-Score5
WACC9.88%
ROIC/WACC1.45
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)83.33%
EPS 3Y11.35%
EPS 5Y30.26%
EPS Q2Q%328.57%
EPS Next Y12.2%
EPS Next 2Y24.15%
EPS Next 3Y22.45%
EPS Next 5YN/A
Revenue 1Y (TTM)58.67%
Revenue growth 3Y27%
Revenue growth 5Y21.85%
Sales Q2Q%104.25%
Revenue Next Year40.92%
Revenue Next 2Y29.28%
Revenue Next 3Y20.61%
Revenue Next 5YN/A
EBIT growth 1Y75.36%
EBIT growth 3Y35.31%
EBIT growth 5Y44.57%
EBIT Next Year79.55%
EBIT Next 3Y36.19%
EBIT Next 5YN/A
FCF growth 1Y-140.57%
FCF growth 3Y-40.64%
FCF growth 5Y-15.22%
OCF growth 1Y-7.23%
OCF growth 3Y8.09%
OCF growth 5Y22.4%