INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis
USA - NASDAQ:ISSC - US45769N1054 - Common Stock
11.25 USD
+0.35 (+3.21%)
We assign a fundamental rating of 7 out of 10 to ISSC. ISSC was compared to 69 industry peers in the Aerospace & Defense industry. While ISSC has a great profitability rating, there are some minor concerns on its financial health. ISSC has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings would make ISSC suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
In the past year ISSC was profitable.
ISSC had a positive operating cash flow in the past year.
Each year in the past 5 years ISSC has been profitable.
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 97.10% of its industry peers.
ISSC has a better Return On Equity (20.60%) than 88.41% of its industry peers.
ISSC's Return On Invested Capital of 15.91% is amongst the best of the industry. ISSC outperforms 97.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ISSC is above the industry average of 8.29%.
The 3 year average ROIC (12.99%) for ISSC is below the current ROIC(15.91%), indicating increased profibility in the last year.
| 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's Profit Margin of 15.11% is amongst the best of the industry. ISSC outperforms 95.65% of its industry peers.
In the last couple of years the Profit Margin of ISSC has grown nicely.
Looking at the Operating Margin, with a value of 20.93%, ISSC belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
In the last couple of years the Operating Margin of ISSC has grown nicely.
ISSC has a better Gross Margin (45.18%) than 86.96% 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.
ISSC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ISSC is higher compared to a year ago.
2.2 Solvency
ISSC has an Altman-Z score of 5.42. This indicates that ISSC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.42, ISSC is doing good in the industry, outperforming 65.22% 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.
With a Debt to FCF ratio value of 26.39, ISSC perfoms like the industry average, outperforming 49.28% 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's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. ISSC outperforms 57.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 26.39 | ||
| Altman-Z | 5.42 |
ROIC/WACC1.69
WACC9.42%
2.3 Liquidity
ISSC has a Current Ratio of 3.53. This indicates that ISSC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ISSC (3.53) is better than 76.81% 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.
ISSC has a better Quick ratio (1.69) than 65.22% of its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 33.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.85% on average over the next years. This is a very strong growth
EPS Next Y41.67%
EPS Next 2Y28.63%
EPS Next 3Y33.94%
EPS Next 5YN/A
Revenue Next Year56.41%
Revenue Next 2Y35.41%
Revenue Next 3Y27.85%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 16.30, which indicates a correct valuation of ISSC.
97.10% of the companies in the same industry are more expensive than ISSC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ISSC to the average of the S&P500 Index (27.20), we can say ISSC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.11, the valuation of ISSC can be described as correct.
Based on the Price/Forward Earnings ratio, ISSC is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
ISSC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 15.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ISSC is valued cheaply inside the industry as 97.10% of the companies are valued more expensively.
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 | 225.05 | ||
| EV/EBITDA | 10.91 |
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.
ISSC's earnings are expected to grow with 33.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)0.54
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 |
NASDAQ:ISSC (9/18/2025, 10:25:07 AM)
11.25
+0.35 (+3.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners38.63%
Inst Owner Change6.54%
Ins Owners6.62%
Ins Owner Change2.54%
Market Cap198.34M
Analysts85
Price Target15.86 (40.98%)
Short Float %5.78%
Short Ratio1.17
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)42.01%
PT rev (3m)42.01%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)13.64%
EPS NY rev (3m)26.26%
Revenue NQ rev (1m)5.26%
Revenue NQ rev (3m)5.26%
Revenue NY rev (1m)10.99%
Revenue NY rev (3m)10.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 15.11 | ||
| P/S | 2.56 | ||
| P/FCF | 225.05 | ||
| P/OCF | 18.4 | ||
| P/B | 3.49 | ||
| P/tB | 7.64 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)0.69
EY6.13%
EPS(NY)0.74
Fwd EY6.62%
FCF(TTM)0.05
FCFY0.44%
OCF(TTM)0.61
OCFY5.44%
SpS4.39
BVpS3.22
TBVpS1.47
PEG (NY)0.39
PEG (5Y)0.54
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 | 5.42 |
F-Score5
WACC9.42%
ROIC/WACC1.69
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 Y41.67%
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 Year56.41%
Revenue Next 2Y35.41%
Revenue Next 3Y27.85%
Revenue Next 5YN/A
EBIT growth 1Y81.14%
EBIT growth 3Y35.31%
EBIT growth 5Y44.57%
EBIT Next Year79.55%
EBIT Next 3Y36.19%
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%