INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis
USA - NASDAQ:ISSC - US45769N1054 - Common Stock
11.5 USD
+0.6 (+5.5%)
11.5 USD
0 (0%)
Taking everything into account, ISSC scores 7 out of 10 in our fundamental rating. ISSC was compared to 69 industry peers in the Aerospace & Defense industry. ISSC scores excellent on profitability, but there are some minor concerns on its financial health. ISSC is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make ISSC a good candidate 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.
In the past 5 years ISSC always reported a positive cash flow from operatings.
1.2 Ratios
ISSC's Return On Assets of 12.74% is amongst the best of the industry. ISSC outperforms 97.10% of its industry peers.
ISSC's Return On Equity of 20.60% is amongst the best of the industry. ISSC outperforms 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.
ISSC had an Average Return On Invested Capital over the past 3 years of 12.99%. This is above the industry average of 8.29%.
The last Return On Invested Capital (15.91%) for ISSC is above the 3 year average (12.99%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 15.11%, ISSC belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
In the last couple of years the Profit Margin of ISSC has grown nicely.
ISSC has a better Operating Margin (20.93%) than 91.30% of its industry peers.
ISSC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 45.18%, ISSC belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
ISSC's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, ISSC has more shares outstanding
Compared to 5 years ago, ISSC has more shares outstanding
ISSC has a worse debt/assets ratio than last year.
2.2 Solvency
ISSC has an Altman-Z score of 5.60. This indicates that ISSC is financially healthy and has little risk of bankruptcy at the moment.
ISSC's Altman-Z score of 5.60 is fine compared to the rest of the industry. ISSC outperforms 65.22% of its industry peers.
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.
ISSC has a Debt to FCF ratio of 26.39. This is comparable to the rest of the industry: ISSC outperforms 49.28% of its industry peers.
ISSC has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
ISSC has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 26.39 | ||
| Altman-Z | 5.6 |
ROIC/WACC1.68
WACC9.45%
2.3 Liquidity
A Current Ratio of 3.53 indicates that ISSC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.53, ISSC is in the better half of the industry, outperforming 76.81% of the companies in the same industry.
A Quick Ratio of 1.69 indicates that ISSC should not have too much problems paying its short term obligations.
The Quick ratio of ISSC (1.69) is better than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.92% over the past year.
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.
ISSC shows a strong growth in Revenue. In the last year, 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
ISSC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.94% yearly.
ISSC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.85% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ISSC is valuated correctly with a Price/Earnings ratio of 16.67.
95.65% of the companies in the same industry are more expensive than ISSC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, ISSC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.44, the valuation of ISSC can be described as correct.
ISSC's Price/Forward Earnings ratio is rather cheap when compared to the industry. ISSC is cheaper than 94.20% of the companies in the same industry.
ISSC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 15.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ISSC indicates a rather cheap valuation: ISSC is cheaper than 97.10% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ISSC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 230.05 | ||
| EV/EBITDA | 11.44 |
4.3 Compensation for Growth
ISSC's 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)0.4
PEG (5Y)0.55
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 |
11.5
+0.6 (+5.5%)
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 Cap202.75M
Analysts85
Price Target15.86 (37.91%)
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 | 16.67 | ||
| Fwd PE | 15.44 | ||
| P/S | 2.62 | ||
| P/FCF | 230.05 | ||
| P/OCF | 18.8 | ||
| P/B | 3.57 | ||
| P/tB | 7.81 | ||
| EV/EBITDA | 11.44 |
EPS(TTM)0.69
EY6%
EPS(NY)0.74
Fwd EY6.47%
FCF(TTM)0.05
FCFY0.43%
OCF(TTM)0.61
OCFY5.32%
SpS4.39
BVpS3.22
TBVpS1.47
PEG (NY)0.4
PEG (5Y)0.55
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 | 5.6 |
F-Score5
WACC9.45%
ROIC/WACC1.68
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%