21.64 USD
+0.47 (+2.22%)
21.662 USD
+0.02 (+0.1%)
We assign a fundamental rating of 7 out of 10 to ISSC. ISSC was compared to 73 industry peers in the Aerospace & Defense industry. ISSC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ISSC is growing strongly while it is still valued neutral. This is a good combination! This makes ISSC very considerable for growth and quality 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.
- 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
- With an excellent Return On Assets value of 15.12%, ISSC belongs to the best 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 90.41% of its industry peers.
- ISSC's Return On Invested Capital of 18.22% is amongst the best of the industry. ISSC outperforms 98.63% of its industry peers.
- ISSC had an Average Return On Invested Capital over the past 3 years of 12.86%. This is above the industry average of 8.56%.
- The last Return On Invested Capital (18.22%) for ISSC is above the 3 year average (12.86%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 18.54%, ISSC belongs to the top of the industry, outperforming 98.63% of the companies in the same industry.
- ISSC's Profit Margin has improved in the last couple of years.
- The Operating Margin of ISSC (23.81%) is better than 97.26% of its industry peers.
- 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.
- In the last couple of years the Gross Margin of ISSC has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ISSC is creating value.
- The number of shares outstanding for ISSC has been increased compared to 1 year ago.
- ISSC has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ISSC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.14 indicates that ISSC is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.14, ISSC is in the better half of the industry, outperforming 72.60% of the companies in the same industry.
- The Debt to FCF ratio of ISSC is 3.55, which is a good value as it means it would take ISSC, 3.55 years of fcf income to pay off all of its debts.
- ISSC has a better Debt to FCF ratio (3.55) than 80.82% of its industry peers.
- ISSC has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
- ISSC's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. ISSC outperforms 61.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 8.14 |
ROIC/WACC1.86
WACC9.78%
2.3 Liquidity
- ISSC has a Current Ratio of 3.04. This indicates that ISSC is financially healthy and has no problem in meeting its short term obligations.
- ISSC's Current ratio of 3.04 is fine compared to the rest of the industry. ISSC outperforms 61.64% of its industry peers.
- A Quick Ratio of 1.50 indicates that ISSC should not have too much problems paying its short term obligations.
- ISSC has a Quick ratio (1.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 80.00% over the past year.
- The Earnings Per Share has been growing by 35.77% on average over the past years. This is a very strong growth
- Looking at the last year, ISSC shows a very strong growth in Revenue. The Revenue has grown by 78.60%.
- Measured over the past years, ISSC shows a very strong growth in Revenue. The Revenue has been growing by 31.30% on average per year.
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
- Based on estimates for the next years, ISSC will show a small growth in Earnings Per Share. The EPS will grow by 1.41% on average per year.
- The Revenue is expected to grow by 10.78% on average over the next years. This is quite good.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.72, which means the current valuation is very expensive for ISSC.
- Based on the Price/Earnings ratio, ISSC is valued cheaper than 87.67% of the companies in the same industry.
- ISSC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 31.51, which means the current valuation is very expensive for ISSC.
- Based on the Price/Forward Earnings ratio, ISSC is valued a bit cheaper than the industry average as 71.23% of the companies are valued more expensively.
- ISSC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 31.51 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ISSC is valued cheaply inside the industry as 86.30% of the companies are valued more expensively.
- 63.01% of the companies in the same industry are more expensive than ISSC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.18 | ||
| EV/EBITDA | 16.93 |
4.3 Compensation for Growth
- ISSC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y1.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for ISSC!.
| Industry Rank | Sector 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 4 / 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%.