INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis
USA - NASDAQ:ISSC - US45769N1054 - Common Stock
8.85 USD
-0.29 (-3.17%)
8.85 USD
0 (0%)
ISSC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 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 evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, ISSC could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
ISSC had positive earnings in the past year.
In the past year ISSC had a positive cash flow from operations.
In the past 5 years ISSC has always been profitable.
ISSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ISSC has a Return On Assets of 12.74%. This is amongst the best in the industry. ISSC outperforms 95.77% of its industry peers.
Looking at the Return On Equity, with a value of 20.60%, ISSC belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
ISSC has a Return On Invested Capital of 15.91%. This is amongst the best in the industry. ISSC outperforms 97.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ISSC is above the industry average of 8.48%.
The 3 year average ROIC (12.99%) for ISSC is below the current ROIC(15.91%), indicating increased profibility in the last year.
| 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
ISSC's Profit Margin of 15.11% is amongst the best of the industry. ISSC outperforms 95.77% of its industry peers.
In the last couple of years the Profit Margin of ISSC has grown nicely.
ISSC has a better Operating Margin (20.93%) than 91.55% of its industry peers.
ISSC's Operating Margin has improved in the last couple of years.
ISSC has a Gross Margin of 45.18%. This is amongst the best in the industry. ISSC outperforms 85.92% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ISSC is creating some value.
Compared to 1 year ago, ISSC has more shares outstanding
Compared to 5 years ago, ISSC has more shares outstanding
The debt/assets ratio for ISSC is higher compared to a year ago.
2.2 Solvency
ISSC has an Altman-Z score of 4.89. This indicates that ISSC is financially healthy and has little risk of bankruptcy at the moment.
ISSC has a better Altman-Z score (4.89) than 60.56% 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 (26.39) which is comparable to the rest of the industry.
ISSC has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.41, ISSC is in line with its industry, outperforming 57.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 26.39 | ||
| Altman-Z | 4.89 |
ROIC/WACC1.72
WACC9.26%
2.3 Liquidity
A Current Ratio of 3.53 indicates that ISSC has no problem at all paying its short term obligations.
ISSC's Current ratio of 3.53 is fine compared to the rest of the industry. ISSC outperforms 76.06% of its industry peers.
A Quick Ratio of 1.69 indicates that ISSC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.69, ISSC is in the better half of the industry, outperforming 64.79% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 30.26% on average over the past years. This is a very strong growth
The Revenue has grown by 72.82% in the past year. This is a very strong growth!
The Revenue has been growing by 21.85% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, ISSC will show a very strong growth in Revenue. The Revenue will grow by 27.85% on average per year.
EPS Next Y33.73%
EPS Next 2Y28.63%
EPS Next 3Y33.94%
EPS Next 5YN/A
Revenue Next Year61.54%
Revenue Next 2Y36.41%
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 12.83.
Compared to the rest of the industry, the Price/Earnings ratio of ISSC indicates a rather cheap valuation: ISSC is cheaper than 98.59% of the companies listed in the same industry.
ISSC is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
ISSC is valuated reasonably with a Price/Forward Earnings ratio of 11.89.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ISSC indicates a rather cheap valuation: ISSC is cheaper than 94.37% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. ISSC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 11.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ISSC is valued cheaper than 98.59% of the companies in the same industry.
ISSC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 177.04 | ||
| EV/EBITDA | 9.33 |
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.
A more expensive valuation may be justified as ISSC's earnings are expected to grow with 33.94% in the coming years.
PEG (NY)0.38
PEG (5Y)0.42
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 |
8.85
-0.29 (-3.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners40.57%
Inst Owner Change5.96%
Ins Owners6.61%
Ins Owner Change0%
Market Cap156.03M
Revenue(TTM)77.43M
Net Income(TTM)11.70M
Analysts85
Price Target15.86 (79.21%)
Short Float %5.68%
Short Ratio1.71
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)0%
PT rev (3m)42.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.5%
EPS NY rev (1m)0%
EPS NY rev (3m)7.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)14.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 11.89 | ||
| P/S | 2.01 | ||
| P/FCF | 177.04 | ||
| P/OCF | 14.47 | ||
| P/B | 2.75 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)0.69
EY7.8%
EPS(NY)0.74
Fwd EY8.41%
FCF(TTM)0.05
FCFY0.56%
OCF(TTM)0.61
OCFY6.91%
SpS4.39
BVpS3.22
TBVpS1.47
PEG (NY)0.38
PEG (5Y)0.42
Graham Number7.07
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%
ROICexgc growth 3Y-1.78%
ROICexgc 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 | 4.89 |
F-Score5
WACC9.26%
ROIC/WACC1.72
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 Y33.73%
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 Year61.54%
Revenue Next 2Y36.41%
Revenue Next 3Y27.85%
Revenue Next 5YN/A
EBIT growth 1Y81.14%
EBIT growth 3Y35.31%
EBIT growth 5Y44.57%
EBIT Next Year87%
EBIT Next 3Y42%
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%
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.
Can you provide the valuation status for INNOVATIVE SOLUTIONS & SUPP?
ChartMill assigns a valuation rating of 8 / 10 to INNOVATIVE SOLUTIONS & SUPP (ISSC). This can be considered as Undervalued.
Can you provide the profitability details for INNOVATIVE SOLUTIONS & SUPP?
INNOVATIVE SOLUTIONS & SUPP (ISSC) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for ISSC stock?
The Price/Earnings (PE) ratio for INNOVATIVE SOLUTIONS & SUPP (ISSC) is 12.83 and the Price/Book (PB) ratio is 2.75.
What is the financial health of INNOVATIVE SOLUTIONS & SUPP (ISSC) stock?
The financial health rating of INNOVATIVE SOLUTIONS & SUPP (ISSC) is 5 / 10.