21.44 USD
+0.27 (+1.28%)
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. ISSC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ISSC is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make ISSC suitable for growth and quality 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.
- ISSC had positive earnings in each of the past 5 years.
- Each year in the past 5 years ISSC had a positive operating cash flow.
1.2 Ratios
- ISSC's Return On Assets of 15.12% is amongst the best of the industry. ISSC outperforms 97.26% of its industry peers.
- Looking at the Return On Equity, with a value of 24.19%, ISSC belongs to the top of the industry, outperforming 90.41% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 18.22%, ISSC belongs to the best of the industry, outperforming 98.63% of the companies in the same industry.
- 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
- ISSC's Profit Margin of 18.54% is amongst the best of the industry. ISSC outperforms 98.63% of its industry peers.
- ISSC's Profit Margin has improved in the last couple of years.
- ISSC has a Operating Margin of 23.81%. This is amongst the best in the industry. ISSC outperforms 97.26% of its industry peers.
- In the last couple of years the Operating Margin of ISSC has grown nicely.
- With an excellent Gross Margin value of 48.06%, ISSC belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.
- 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
- ISSC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 an improved debt to assets ratio.
2.2 Solvency
- ISSC has an Altman-Z score of 8.01. This indicates that ISSC is financially healthy and has little risk of bankruptcy at the moment.
- ISSC's Altman-Z score of 8.01 is fine compared to the rest of the industry. ISSC outperforms 68.49% of its industry peers.
- 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's Debt to FCF ratio of 3.55 is amongst the best of the industry. ISSC outperforms 80.82% of its industry peers.
- A Debt/Equity ratio of 0.34 indicates that ISSC is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.34, ISSC is doing good in the industry, outperforming 61.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 8.01 |
ROIC/WACC1.86
WACC9.79%
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.
- Looking at the Current ratio, with a value of 3.04, ISSC is in the better half of the industry, outperforming 61.64% of the companies in the same industry.
- 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.
- The Quick ratio of ISSC (1.50) 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
- ISSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.00%, which is quite impressive.
- 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%.
- 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
- Based on estimates for the next years, ISSC will show a small growth in Earnings Per Share. The EPS will grow by 4.37% on average per year.
- ISSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.78% yearly.
EPS Next Y-9.65%
EPS Next 2Y4.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.61%
Revenue Next 2Y7.6%
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
- With a Price/Earnings ratio of 26.47, ISSC can be considered very expensive at the moment.
- ISSC's Price/Earnings ratio is rather cheap when compared to the industry. ISSC is cheaper than 87.67% of the companies in the same industry.
- ISSC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
- The Price/Forward Earnings ratio is 29.30, 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 76.71% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ISSC to the average of the S&P500 Index (24.32), we can say ISSC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.47 | ||
| Fwd PE | 29.3 |
4.2 Price Multiples
- ISSC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ISSC is cheaper than 87.67% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ISSC indicates a somewhat cheap valuation: ISSC is cheaper than 64.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.66 | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
- The excellent profitability rating of ISSC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y4.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- ISSC does not give a dividend.
| 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 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%.