INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:ISSC • US45769N1054

18.49 USD
-0.56 (-2.94%)
At close: Jan 30, 2026
18.49 USD
0 (0%)
After Hours: 1/30/2026, 8:00:02 PM
Fundamental Rating

7

Taking everything into account, ISSC scores 7 out of 10 in our fundamental rating. ISSC was compared to 73 industry peers in the Aerospace & Defense industry. Both the health and profitability get an excellent rating, making ISSC a very profitable company, without any liquidiy or solvency issues. ISSC is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make ISSC a good candidate for growth and quality investing.


Dividend Valuation Growth Profitability Health

9

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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5M 10M 15M 20M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 15.12%, ISSC belongs to the top of the industry, outperforming 97.26% of the companies in the same industry.
  • ISSC has a Return On Equity of 24.19%. This is amongst the best in the industry. ISSC outperforms 89.04% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 18.22%, ISSC belongs to the top of the industry, outperforming 98.63% 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 8.65%.
  • The 3 year average ROIC (12.86%) for ISSC is below the current ROIC(18.22%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 15.12%
ROE 24.19%
ROIC 18.22%
ROA(3y)11.06%
ROA(5y)13.55%
ROE(3y)18.27%
ROE(5y)18.67%
ROIC(3y)12.86%
ROIC(5y)13.9%
ISSC Yearly ROA, ROE, ROICISSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

  • ISSC has a Profit Margin of 18.54%. This is amongst the best in the industry. ISSC outperforms 98.63% of its industry peers.
  • ISSC's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 23.81%, ISSC belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ISSC has grown nicely.
  • ISSC has a Gross Margin of 48.06%. This is amongst the best in the industry. ISSC outperforms 86.30% of its industry peers.
  • ISSC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 23.81%
PM (TTM) 18.54%
GM 48.06%
OM growth 3Y-2.92%
OM growth 5Y13.34%
PM growth 3Y-2.33%
PM growth 5Y4.14%
GM growth 3Y-7.18%
GM growth 5Y-2.53%
ISSC Yearly Profit, Operating, Gross MarginsISSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

7

2. Health

2.1 Basic Checks

  • ISSC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • ISSC has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for ISSC has been increased compared to 5 years ago.
  • ISSC has a better debt/assets ratio than last year.
ISSC Yearly Shares OutstandingISSC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5M 10M 15M
ISSC Yearly Total Debt VS Total AssetsISSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M

2.2 Solvency

  • An Altman-Z score of 7.28 indicates that ISSC is not in any danger for bankruptcy at the moment.
  • ISSC's Altman-Z score of 7.28 is fine compared to the rest of the industry. ISSC outperforms 68.49% of its industry peers.
  • ISSC has a debt to FCF ratio of 3.55. This is a good value and a sign of high solvency as ISSC would need 3.55 years to pay back of all of its debts.
  • ISSC has a Debt to FCF ratio of 3.55. This is in the better half of the industry: ISSC outperforms 79.45% of its industry peers.
  • A Debt/Equity ratio of 0.34 indicates that ISSC is not too dependend on debt financing.
  • ISSC has a Debt to Equity ratio of 0.34. This is in the better half of the industry: ISSC outperforms 61.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 3.55
Altman-Z 7.28
ROIC/WACC1.81
WACC10.06%
ISSC Yearly LT Debt VS Equity VS FCFISSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M 40M 60M

2.3 Liquidity

  • A Current Ratio of 3.04 indicates that ISSC has no problem at all paying its short term obligations.
  • ISSC has a Current ratio of 3.04. This is in the better half of the industry: ISSC outperforms 61.64% of its industry peers.
  • ISSC has a Quick Ratio of 1.50. 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 Quick ratio of 1.50. This is comparable to the rest of the industry: ISSC outperforms 54.79% of its industry peers.
Industry RankSector Rank
Current Ratio 3.04
Quick Ratio 1.5
ISSC Yearly Current Assets VS Current LiabilitesISSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 80.00% over the past year.
  • ISSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.77% yearly.
  • ISSC shows a strong growth in Revenue. In the last year, the Revenue has grown by 78.60%.
  • The Revenue has been growing by 31.30% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)80%
EPS 3Y39.92%
EPS 5Y35.77%
EPS Q2Q%57.14%
Revenue 1Y (TTM)78.6%
Revenue growth 3Y44.84%
Revenue growth 5Y31.3%
Sales Q2Q%44.55%

3.2 Future

  • ISSC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.41% yearly.
  • Based on estimates for the next years, ISSC will show a quite strong growth in Revenue. The Revenue will grow by 10.78% on average per year.
EPS Next Y-15.21%
EPS Next 2Y1.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.61%
Revenue Next 2Y7.83%
Revenue Next 3Y10.78%
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 decreasing.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
ISSC Yearly Revenue VS EstimatesISSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20M 40M 60M 80M 100M
ISSC Yearly EPS VS EstimatesISSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2018 2019 2020 2021 2023 2024 2025 2026 2027 0 0.2 0.4 0.6 0.8

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.83, which indicates a rather expensive current valuation of ISSC.
  • Based on the Price/Earnings ratio, ISSC is valued cheaply inside the industry as 93.15% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ISSC to the average of the S&P500 Index (28.32), we can say ISSC is valued inline with the index average.
  • The Price/Forward Earnings ratio is 26.92, which means the current valuation is very expensive for ISSC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ISSC indicates a somewhat cheap valuation: ISSC is cheaper than 79.45% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of ISSC to the average of the S&P500 Index (25.57), we can say ISSC is valued inline with the index average.
Industry RankSector Rank
PE 22.83
Fwd PE 26.92
ISSC Price Earnings VS Forward Price EarningsISSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • ISSC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ISSC is cheaper than 90.41% of the companies in the same industry.
  • ISSC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ISSC is cheaper than 67.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF 48
EV/EBITDA 14.59
ISSC Per share dataISSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

  • ISSC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y1.41%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

  • ISSC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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.


What is the valuation status of INNOVATIVE SOLUTIONS & SUPP (ISSC) stock?

ChartMill assigns a valuation rating of 5 / 10 to INNOVATIVE SOLUTIONS & SUPP (ISSC). This can be considered as Fairly Valued.


How profitable is INNOVATIVE SOLUTIONS & SUPP (ISSC) stock?

INNOVATIVE SOLUTIONS & SUPP (ISSC) has a profitability rating of 9 / 10.


Can you provide the financial health for ISSC stock?

The financial health rating of INNOVATIVE SOLUTIONS & SUPP (ISSC) is 7 / 10.


How sustainable is the dividend of INNOVATIVE SOLUTIONS & SUPP (ISSC) stock?

The dividend rating of INNOVATIVE SOLUTIONS & SUPP (ISSC) is 0 / 10 and the dividend payout ratio is 0%.