INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis
USA - NASDAQ:ISSC - US45769N1054 - Common Stock
12.01 USD
-0.42 (-3.38%)
11.97 USD
-0.04 (-0.33%)
ISSC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 industry peers in the Aerospace & Defense industry. While ISSC has a great profitability rating, there are some minor concerns on its financial health. ISSC is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make ISSC suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
ISSC had positive earnings in the past year.
ISSC had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 12.74%, ISSC belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.60%, ISSC belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.91%, ISSC belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ISSC is above the industry average of 8.27%.
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 95.59% 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 91.18% of its industry peers.
ISSC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.18%, ISSC belongs to the top of the industry, outperforming 85.29% 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
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
The number of shares outstanding for ISSC has been increased compared to 5 years ago.
Compared to 1 year ago, ISSC has a worse debt to assets ratio.
2.2 Solvency
ISSC has an Altman-Z score of 5.75. This indicates that ISSC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ISSC (5.75) is better than 64.71% of its industry peers.
ISSC has a debt to FCF ratio of 26.39. This is a negative value and a sign of low solvency as ISSC would need 26.39 years to pay back of all of its debts.
The Debt to FCF ratio of ISSC (26.39) is comparable to the rest of the industry.
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 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 26.39 | ||
| Altman-Z | 5.75 |
ROIC/WACC1.7
WACC9.37%
2.3 Liquidity
A Current Ratio of 3.53 indicates that ISSC has no problem at all paying its short term obligations.
The Current ratio of ISSC (3.53) is better than 77.94% 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.
Looking at the Quick ratio, with a value of 1.69, ISSC is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.92% 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.
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
ISSC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.94% yearly.
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
A Price/Earnings ratio of 17.41 indicates a rather expensive valuation of ISSC.
Based on the Price/Earnings ratio, ISSC is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ISSC to the average of the S&P500 Index (27.91), we can say ISSC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.13, ISSC is valued correctly.
Based on the Price/Forward Earnings ratio, ISSC is valued cheaply inside the industry as 92.65% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ISSC to the average of the S&P500 Index (23.30), we can say ISSC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ISSC is valued cheaper than 97.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ISSC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 240.25 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
ISSC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ISSC has an outstanding profitability rating, which 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)0.52
PEG (5Y)0.58
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 |
12.01
-0.42 (-3.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners40.57%
Inst Owner Change0%
Ins Owners6.61%
Ins Owner Change2.54%
Market Cap211.74M
Analysts85
Price Target15.86 (32.06%)
Short Float %5.87%
Short Ratio1.32
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)11.47%
PT rev (3m)42.01%
EPS NQ rev (1m)-25%
EPS NQ rev (3m)-37.5%
EPS NY rev (1m)-5.6%
EPS NY rev (3m)7.27%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)5.42%
Revenue NY rev (1m)3.28%
Revenue NY rev (3m)14.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 16.13 | ||
| P/S | 2.73 | ||
| P/FCF | 240.25 | ||
| P/OCF | 19.64 | ||
| P/B | 3.73 | ||
| P/tB | 8.16 | ||
| EV/EBITDA | 11.9 |
EPS(TTM)0.69
EY5.75%
EPS(NY)0.74
Fwd EY6.2%
FCF(TTM)0.05
FCFY0.42%
OCF(TTM)0.61
OCFY5.09%
SpS4.39
BVpS3.22
TBVpS1.47
PEG (NY)0.52
PEG (5Y)0.58
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%
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 Turnover0.84
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 | 5.75 |
F-Score5
WACC9.37%
ROIC/WACC1.7
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%