INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis
NASDAQ:ISSC - Nasdaq - US45769N1054 - Common Stock - Currency: USD
Taking everything into account, ISSC scores 7 out of 10 in our fundamental rating. ISSC was compared to 64 industry peers in the Aerospace & Defense industry. ISSC has an excellent profitability rating, but there are some minor concerns on its financial health. ISSC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make ISSC suitable for 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.
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.
1.2 Ratios
The Return On Assets of ISSC (8.22%) is better than 85.94% of its industry peers.
Looking at the Return On Equity, with a value of 13.98%, ISSC is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
ISSC's Return On Invested Capital of 9.93% is amongst the best of the industry. ISSC outperforms 84.38% of its industry peers.
ISSC had an Average Return On Invested Capital over the past 3 years of 12.99%. This is significantly above the industry average of 7.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.22% | ||
| ROE | 13.98% | ||
| ROIC | 9.93% |
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 (12.40%) is better than 85.94% of its industry peers.
In the last couple of years the Profit Margin of ISSC has grown nicely.
ISSC has a better Operating Margin (17.43%) than 89.06% of its industry peers.
In the last couple of years the Operating Margin of ISSC has grown nicely.
ISSC's Gross Margin of 50.13% is amongst the best of the industry. ISSC outperforms 89.06% 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 | 17.43% | ||
| PM (TTM) | 12.4% | ||
| GM | 50.13% |
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
ISSC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ISSC has more shares outstanding
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
An Altman-Z score of 4.84 indicates that ISSC is not in any danger for bankruptcy at the moment.
ISSC's Altman-Z score of 4.84 is fine compared to the rest of the industry. ISSC outperforms 65.63% of its industry peers.
ISSC has a Debt/Equity ratio of 0.55. This is a neutral value indicating ISSC is somewhat dependend on debt financing.
ISSC has a Debt to Equity ratio of 0.55. This is comparable to the rest of the industry: ISSC outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.84 |
ROIC/WACC1.01
WACC9.85%
2.3 Liquidity
A Current Ratio of 5.22 indicates that ISSC has no problem at all paying its short term obligations.
ISSC's Current ratio of 5.22 is amongst the best of the industry. ISSC outperforms 93.75% of its industry peers.
ISSC has a Quick Ratio of 2.85. This indicates that ISSC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.85, ISSC belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.22 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.33% over the past year.
The Earnings Per Share has been growing by 30.26% on average over the past years. This is a very strong growth
ISSC shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.59%.
ISSC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.85% yearly.
EPS 1Y (TTM)83.33%
EPS 3Y11.35%
EPS 5Y30.26%
EPS Q2Q%328.57%
Revenue 1Y (TTM)35.59%
Revenue growth 3Y27%
Revenue growth 5Y21.85%
Sales Q2Q%104.25%
3.2 Future
The Earnings Per Share is expected to grow by 22.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 20.61% on average over the next years. This is a very strong growth
EPS Next Y12.2%
EPS Next 2Y24.15%
EPS Next 3Y22.45%
EPS Next 5YN/A
Revenue Next Year23.68%
Revenue Next 2Y19.98%
Revenue Next 3Y20.61%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.83, which indicates a correct valuation of ISSC.
Compared to the rest of the industry, the Price/Earnings ratio of ISSC indicates a rather cheap valuation: ISSC is cheaper than 92.19% of the companies listed in the same industry.
ISSC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.07, the valuation of ISSC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ISSC indicates a rather cheap valuation: ISSC is cheaper than 92.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ISSC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 15.07 |
4.2 Price Multiples
67.19% of the companies in the same industry are more expensive than ISSC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.24 |
4.3 Compensation for Growth
The 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)1.3
PEG (5Y)0.52
EPS Next 2Y24.15%
EPS Next 3Y22.45%
5. Dividend
5.1 Amount
No dividends for ISSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.45
+0.44 (+4.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners35.49%
Inst Owner Change17.47%
Ins Owners6.5%
Ins Owner Change2.79%
Market Cap183.92M
Analysts85
Price Target10.97 (4.98%)
Short Float %0.96%
Short Ratio1.43
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)-4.47%
Min EPS beat(2)-67.32%
Max EPS beat(2)58.37%
EPS beat(4)1
Avg EPS beat(4)-14.17%
Min EPS beat(4)-67.32%
Max EPS beat(4)58.37%
EPS beat(8)4
Avg EPS beat(8)-1.01%
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)29.02%
Min Revenue beat(2)27.96%
Max Revenue beat(2)30.07%
Revenue beat(4)2
Avg Revenue beat(4)12.47%
Min Revenue beat(4)-5.14%
Max Revenue beat(4)30.07%
Revenue beat(8)5
Avg Revenue beat(8)9.57%
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)0.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.83 | ||
| Fwd PE | 15.07 | ||
| P/S | 3.41 | ||
| P/FCF | N/A | ||
| P/OCF | 53.75 | ||
| P/B | 3.85 | ||
| P/tB | 11.48 | ||
| EV/EBITDA | 16.24 |
EPS(TTM)0.66
EY6.32%
EPS(NY)0.69
Fwd EY6.64%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)0.19
OCFY1.86%
SpS3.06
BVpS2.71
TBVpS0.91
PEG (NY)1.3
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.22% | ||
| ROE | 13.98% | ||
| ROCE | 12.56% | ||
| ROIC | 9.93% | ||
| ROICexc | 10.01% | ||
| ROICexgc | 17.51% | ||
| OM | 17.43% | ||
| PM (TTM) | 12.4% | ||
| GM | 50.13% | ||
| 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-Score3
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 163.28% | ||
| Cap/Sales | 9.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 27.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.22 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 4.84 |
F-Score3
WACC9.85%
ROIC/WACC1.01
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)35.59%
Revenue growth 3Y27%
Revenue growth 5Y21.85%
Sales Q2Q%104.25%
Revenue Next Year23.68%
Revenue Next 2Y19.98%
Revenue Next 3Y20.61%
Revenue Next 5YN/A
EBIT growth 1Y14.69%
EBIT growth 3Y35.31%
EBIT growth 5Y44.57%
EBIT Next Year79.55%
EBIT Next 3Y36.19%
EBIT Next 5YN/A
FCF growth 1Y-124.9%
FCF growth 3Y-40.64%
FCF growth 5Y-15.22%
OCF growth 1Y-46.45%
OCF growth 3Y8.09%
OCF growth 5Y22.4%