INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis
USA - NASDAQ:ISSC - US45769N1054 - Common Stock
8.83 USD
-0.02 (-0.23%)
8.89 USD
+0.06 (+0.68%)
Taking everything into account, ISSC scores 7 out of 10 in our fundamental rating. ISSC was compared to 72 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 growing strongly while it also seems undervalued. This is an interesting combination With these ratings, ISSC could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
In the past year ISSC was profitable.
In the past year ISSC had a positive cash flow from operations.
In the past 5 years ISSC has always been profitable.
ISSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ISSC's Return On Assets of 12.74% is amongst the best of the industry. ISSC outperforms 95.89% of its industry peers.
ISSC has a better Return On Equity (20.60%) than 87.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.91%, ISSC belongs to the top of the industry, outperforming 97.26% of the companies in the same industry.
ISSC had an Average Return On Invested Capital over the past 3 years of 12.99%. This is above the industry average of 8.49%.
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
The Profit Margin of ISSC (15.11%) is better than 95.89% of its industry peers.
ISSC's Profit Margin has improved in the last couple of years.
ISSC has a Operating Margin of 20.93%. This is amongst the best in the industry. ISSC outperforms 91.78% of its industry peers.
ISSC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 45.18%, ISSC belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.
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.
Compared to 1 year ago, ISSC has more shares outstanding
ISSC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ISSC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.79 indicates that ISSC is not in any danger for bankruptcy at the moment.
ISSC has a Altman-Z score of 4.79. This is in the better half of the industry: ISSC outperforms 61.64% of its industry peers.
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.
With a Debt to FCF ratio value of 26.39, ISSC perfoms like the industry average, outperforming 49.32% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that ISSC is not too dependend on debt financing.
ISSC has a Debt to Equity ratio (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 26.39 | ||
| Altman-Z | 4.79 |
ROIC/WACC1.73
WACC9.21%
2.3 Liquidity
A Current Ratio of 3.53 indicates that ISSC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.53, ISSC is in the better half of the industry, outperforming 76.71% of the companies in the same industry.
A Quick Ratio of 1.69 indicates that ISSC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.69, ISSC is in the better half of the industry, outperforming 65.75% 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.
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.
ISSC shows a strong growth in Revenue. In the last year, the Revenue has grown by 72.82%.
The Revenue has been growing by 21.85% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, ISSC will show a very strong growth in Earnings Per Share. The EPS will grow by 33.94% on average per year.
The Revenue is expected to grow by 27.85% on average over the next years. This is a very strong growth
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
ISSC is valuated correctly with a Price/Earnings ratio of 12.80.
Based on the Price/Earnings ratio, ISSC is valued cheaply inside the industry as 98.63% of the companies are valued more expensively.
ISSC is valuated cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.86, the valuation of ISSC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ISSC is valued cheaper than 94.52% of the companies in the same industry.
ISSC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 11.86 |
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 98.63% of the companies listed in the same industry.
ISSC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 176.64 | ||
| EV/EBITDA | 9.05 |
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)0.38
PEG (5Y)0.42
EPS Next 2Y28.63%
EPS Next 3Y33.94%
5. Dividend
5.1 Amount
ISSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.83
-0.02 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners40.57%
Inst Owner Change8.66%
Ins Owners6.61%
Ins Owner Change0%
Market Cap155.67M
Revenue(TTM)77.43M
Net Income(TTM)11.70M
Analysts85
Price Target15.86 (79.61%)
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 | 12.8 | ||
| Fwd PE | 11.86 | ||
| P/S | 2.01 | ||
| P/FCF | 176.64 | ||
| P/OCF | 14.44 | ||
| P/B | 2.74 | ||
| P/tB | 6 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)0.69
EY7.81%
EPS(NY)0.74
Fwd EY8.43%
FCF(TTM)0.05
FCFY0.57%
OCF(TTM)0.61
OCFY6.93%
SpS4.39
BVpS3.22
TBVpS1.47
PEG (NY)0.38
PEG (5Y)0.42
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 | 4.79 |
F-Score5
WACC9.21%
ROIC/WACC1.73
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 8 / 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 12.8 and the Price/Book (PB) ratio is 2.74.
What is the financial health of INNOVATIVE SOLUTIONS & SUPP (ISSC) stock?
The financial health rating of INNOVATIVE SOLUTIONS & SUPP (ISSC) is 5 / 10.