INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis
USA - NASDAQ:ISSC - US45769N1054 - Common Stock
8.54 USD
-0.08 (-0.93%)
8.55 USD
+0.01 (+0.12%)
ISSC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 72 industry peers in the Aerospace & Defense industry. While ISSC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ISSC is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, ISSC could be worth investigating further 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.
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 12.74% is amongst the best of the industry. ISSC outperforms 95.83% of its industry peers.
The Return On Equity of ISSC (20.60%) is better than 87.50% of its industry peers.
With an excellent Return On Invested Capital value of 15.91%, ISSC belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
ISSC had an Average Return On Invested Capital over the past 3 years of 12.99%. This is above the industry average of 8.50%.
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 has a better Profit Margin (15.11%) than 95.83% of its industry peers.
In the last couple of years the Profit Margin of ISSC has grown nicely.
ISSC has a Operating Margin of 20.93%. This is amongst the best in the industry. ISSC outperforms 91.67% of its industry peers.
ISSC's Operating Margin has improved in the last couple of years.
ISSC has a better Gross Margin (45.18%) than 86.11% 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
Compared to 1 year ago, ISSC has a worse debt to assets ratio.
2.2 Solvency
ISSC has an Altman-Z score of 4.70. This indicates that ISSC is financially healthy and has little risk of bankruptcy at the moment.
ISSC's Altman-Z score of 4.70 is fine compared to the rest of the industry. ISSC outperforms 62.50% of its industry peers.
ISSC has a debt to FCF ratio of 26.39. This is a negative value and a sign of low solvency as ISSC would need 26.39 years to pay back of all of its debts.
ISSC's Debt to FCF ratio of 26.39 is in line compared to the rest of the industry. ISSC outperforms 50.00% 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.
With a Debt to Equity ratio value of 0.41, ISSC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 26.39 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.67
WACC9.53%
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 75.00% of its industry peers.
A Quick Ratio of 1.69 indicates that ISSC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.69, ISSC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.53 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
ISSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.92%, which is quite impressive.
The Earnings Per Share has been growing by 30.26% 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 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
The Earnings Per Share is expected to grow by 33.94% on average over the next years. This is a very strong growth
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 12.38 indicates a correct valuation of ISSC.
Based on the Price/Earnings ratio, ISSC is valued cheaper than 97.22% of the companies in the same industry.
When comparing the Price/Earnings ratio of ISSC to the average of the S&P500 Index (25.89), we can say ISSC is valued rather cheaply.
A Price/Forward Earnings ratio of 11.47 indicates a reasonable valuation of ISSC.
97.22% of the companies in the same industry are more expensive than ISSC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ISSC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
97.22% of the companies in the same industry are more expensive than ISSC, based on the Enterprise Value to EBITDA ratio.
ISSC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 170.84 | ||
| EV/EBITDA | 8.8 |
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)0.37
PEG (5Y)0.41
EPS Next 2Y28.63%
EPS Next 3Y33.94%
5. Dividend
5.1 Amount
No dividends for ISSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.54
-0.08 (-0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners40.57%
Inst Owner Change8.66%
Ins Owners6.61%
Ins Owner Change0%
Market Cap150.56M
Revenue(TTM)77.43M
Net Income(TTM)11.70M
Analysts85
Price Target15.86 (85.71%)
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 | 12.38 | ||
| Fwd PE | 11.47 | ||
| P/S | 1.94 | ||
| P/FCF | 170.84 | ||
| P/OCF | 13.96 | ||
| P/B | 2.65 | ||
| P/tB | 5.8 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)0.69
EY8.08%
EPS(NY)0.74
Fwd EY8.72%
FCF(TTM)0.05
FCFY0.59%
OCF(TTM)0.61
OCFY7.16%
SpS4.39
BVpS3.22
TBVpS1.47
PEG (NY)0.37
PEG (5Y)0.41
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 | 4.7 |
F-Score5
WACC9.53%
ROIC/WACC1.67
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 12.38 and the Price/Book (PB) ratio is 2.65.
What is the financial health of INNOVATIVE SOLUTIONS & SUPP (ISSC) stock?
The financial health rating of INNOVATIVE SOLUTIONS & SUPP (ISSC) is 5 / 10.