21.28 USD
+0.78 (+3.8%)
20.9753 USD
-0.3 (-1.43%)
We assign a fundamental rating of 7 out of 10 to ISSC. ISSC was compared to 73 industry peers in the Aerospace & Defense industry. Both the health and profitability get an excellent rating, making ISSC a very profitable company, without any liquidiy or solvency issues. ISSC is showing excellent growth while it is valued at reasonable prices. 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.
- 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 has a Return On Assets of 15.12%. This is amongst the best in the industry. ISSC outperforms 97.26% of its industry peers.
- With an excellent Return On Equity value of 24.19%, ISSC belongs to the best of the industry, outperforming 90.41% of the companies in the same industry.
- 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 3 year average ROIC (12.86%) for ISSC is below the current ROIC(18.22%), indicating increased profibility in the last year.
| 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
- The Profit Margin of ISSC (18.54%) is better than 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.
- ISSC's Operating Margin has improved in the last couple of years.
- ISSC's Gross Margin of 48.06% is amongst the best of the industry. ISSC outperforms 86.30% of its industry peers.
- ISSC's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ISSC is creating value.
- Compared to 1 year ago, ISSC has more shares outstanding
- ISSC has more shares outstanding than it did 5 years ago.
- ISSC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.83 indicates that ISSC is not in any danger for bankruptcy at the moment.
- ISSC's Altman-Z score of 7.83 is fine compared to the rest of the industry. ISSC outperforms 69.86% of its industry peers.
- ISSC has a debt to FCF ratio of 3.55. This is a good value and a sign of high solvency as ISSC would need 3.55 years to pay back of 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.
- ISSC has a better Debt to Equity ratio (0.34) than 61.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 7.83 |
ROIC/WACC1.82
WACC10.03%
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.
- A Quick Ratio of 1.50 indicates that ISSC should not have too much problems paying 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
- The Earnings Per Share has grown by an impressive 80.00% 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 35.77% on average per year.
- 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
- ISSC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.41% yearly.
- 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-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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- A Price/Earnings ratio of 26.27 indicates a quite expensive valuation of ISSC.
- 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.
- When comparing the Price/Earnings ratio of ISSC to the average of the S&P500 Index (28.87), we can say ISSC is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 30.98, the valuation of ISSC can be described as expensive.
- 75.34% of the companies in the same industry are more expensive than ISSC, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. ISSC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.27 | ||
| Fwd PE | 30.98 |
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 89.04% of the companies listed in the same industry.
- 67.12% 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 | 55.24 | ||
| EV/EBITDA | 16.08 |
4.3 Compensation for Growth
- The excellent profitability rating of ISSC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
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 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%.