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INNOVATIVE SOLUTIONS & SUPP (ISSC) Stock Fundamental Analysis

NASDAQ:ISSC - Nasdaq - US45769N1054 - Common Stock - Currency: USD

6.7  -0.44 (-6.16%)

Fundamental Rating

6

Overall ISSC gets a fundamental rating of 6 out of 10. We evaluated ISSC against 65 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 growing strongly while it also seems undervalued. This is an interesting combination This makes ISSC very considerable for value and growth investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year ISSC was profitable.
In the past year ISSC had a positive cash flow from operations.
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.
ISSC Yearly Net Income VS EBIT VS OCF VS FCFISSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M

1.2 Ratios

ISSC has a better Return On Assets (8.22%) than 82.54% of its industry peers.
ISSC has a better Return On Equity (13.98%) than 76.19% of its industry peers.
ISSC's Return On Invested Capital of 9.93% is amongst the best of the industry. ISSC outperforms 84.13% 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 7.99%.
Industry RankSector Rank
ROA 8.22%
ROE 13.98%
ROIC 9.93%
ROA(3y)11.33%
ROA(5y)12.11%
ROE(3y)16.2%
ROE(5y)16.18%
ROIC(3y)12.99%
ROIC(5y)11.85%
ISSC Yearly ROA, ROE, ROICISSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

ISSC has a better Profit Margin (12.40%) than 82.54% of its industry peers.
In the last couple of years the Profit Margin of ISSC has grown nicely.
ISSC has a better Operating Margin (17.43%) than 88.89% of its industry peers.
ISSC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 50.13%, ISSC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Gross Margin of ISSC has remained more or less at the same level.
Industry RankSector Rank
OM 17.43%
PM (TTM) 12.4%
GM 50.13%
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%
ISSC Yearly Profit, Operating, Gross MarginsISSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

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.
ISSC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ISSC has been increased compared to 5 years ago.
Compared to 1 year ago, ISSC has a worse debt to assets ratio.
ISSC Yearly Shares OutstandingISSC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
ISSC Yearly Total Debt VS Total AssetsISSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

2.2 Solvency

ISSC has an Altman-Z score of 3.93. This indicates that ISSC is financially healthy and has little risk of bankruptcy at the moment.
ISSC has a better Altman-Z score (3.93) than 65.08% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that ISSC is somewhat dependend on debt financing.
ISSC's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. ISSC outperforms 47.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF N/A
Altman-Z 3.93
ROIC/WACC1.12
WACC8.87%
ISSC Yearly LT Debt VS Equity VS FCFISSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M 20M 30M 40M

2.3 Liquidity

ISSC has a Current Ratio of 5.22. This indicates that ISSC is financially healthy and has no problem in meeting its short term obligations.
ISSC has a Current ratio of 5.22. This is amongst the best in the industry. ISSC outperforms 92.06% of its industry peers.
A Quick Ratio of 2.85 indicates that ISSC has no problem at all paying its short term obligations.
ISSC has a Quick ratio of 2.85. This is amongst the best in the industry. ISSC outperforms 88.89% of its industry peers.
Industry RankSector Rank
Current Ratio 5.22
Quick Ratio 2.85
ISSC Yearly Current Assets VS Current LiabilitesISSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M

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8

3. Growth

3.1 Past

ISSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.44%, which is quite good.
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.
Looking at the last year, ISSC shows a very strong growth in Revenue. The Revenue has grown by 43.24%.
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)19.44%
EPS 3Y11.35%
EPS 5Y30.26%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)43.24%
Revenue growth 3Y27%
Revenue growth 5Y21.85%
Sales Q2Q%71.52%

3.2 Future

ISSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.35% yearly.
Based on estimates for the next years, ISSC will show a quite strong growth in Revenue. The Revenue will grow by 15.21% on average per year.
EPS Next Y21.27%
EPS Next 2Y23.23%
EPS Next 3Y19.35%
EPS Next 5YN/A
Revenue Next Year20.88%
Revenue Next 2Y16.32%
Revenue Next 3Y15.21%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
ISSC Yearly Revenue VS EstimatesISSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20M 40M 60M
ISSC Yearly EPS VS EstimatesISSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.2 0.4 0.6

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.58, which indicates a correct valuation of ISSC.
Compared to the rest of the industry, the Price/Earnings ratio of ISSC indicates a rather cheap valuation: ISSC is cheaper than 87.30% of the companies listed in the same industry.
ISSC is valuated rather cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
ISSC is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
Based on the Price/Forward Earnings ratio, ISSC is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. ISSC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.58
Fwd PE 9.8
ISSC Price Earnings VS Forward Price EarningsISSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ISSC is valued cheaper than 87.30% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.15
ISSC Per share dataISSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

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.
ISSC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ISSC's earnings are expected to grow with 19.35% in the coming years.
PEG (NY)0.73
PEG (5Y)0.51
EPS Next 2Y23.23%
EPS Next 3Y19.35%

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0

5. Dividend

5.1 Amount

ISSC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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INNOVATIVE SOLUTIONS & SUPP

NASDAQ:ISSC (3/3/2025, 8:00:02 PM)

6.7

-0.44 (-6.16%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)05-12 2025-05-12
Inst Owners35.49%
Inst Owner Change25.42%
Ins Owners6.5%
Ins Owner Change0.11%
Market Cap117.52M
Analysts85
Price Target10.86 (62.09%)
Short Float %0.76%
Short Ratio0.43
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)-4.47%
Min EPS beat(2)-67.32%
Max EPS beat(2)58.37%
EPS beat(4)1
Avg EPS beat(4)-14.17%
Min EPS beat(4)-67.32%
Max EPS beat(4)58.37%
EPS beat(8)4
Avg EPS beat(8)-1.01%
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)29.02%
Min Revenue beat(2)27.96%
Max Revenue beat(2)30.07%
Revenue beat(4)2
Avg Revenue beat(4)12.47%
Min Revenue beat(4)-5.14%
Max Revenue beat(4)30.07%
Revenue beat(8)5
Avg Revenue beat(8)9.57%
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)13.3%
EPS NQ rev (1m)8.7%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.9%
EPS NY rev (3m)-12.3%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.97%
Revenue NY rev (3m)8.97%
Valuation
Industry RankSector Rank
PE 15.58
Fwd PE 9.8
P/S 2.18
P/FCF N/A
P/OCF 34.34
P/B 2.46
P/tB 7.34
EV/EBITDA 12.15
EPS(TTM)0.43
EY6.42%
EPS(NY)0.68
Fwd EY10.2%
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)0.2
OCFY2.91%
SpS3.07
BVpS2.72
TBVpS0.91
PEG (NY)0.73
PEG (5Y)0.51
Profitability
Industry RankSector Rank
ROA 8.22%
ROE 13.98%
ROCE 12.56%
ROIC 9.93%
ROICexc 10.01%
ROICexgc 17.51%
OM 17.43%
PM (TTM) 12.4%
GM 50.13%
FCFM N/A
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-Score3
Asset Turnover0.66
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF N/A
Debt/EBITDA 2.13
Cap/Depr 163.28%
Cap/Sales 9.26%
Interest Coverage 250
Cash Conversion 27.5%
Profit Quality N/A
Current Ratio 5.22
Quick Ratio 2.85
Altman-Z 3.93
F-Score3
WACC8.87%
ROIC/WACC1.12
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)19.44%
EPS 3Y11.35%
EPS 5Y30.26%
EPS Q2Q%-33.33%
EPS Next Y21.27%
EPS Next 2Y23.23%
EPS Next 3Y19.35%
EPS Next 5YN/A
Revenue 1Y (TTM)43.24%
Revenue growth 3Y27%
Revenue growth 5Y21.85%
Sales Q2Q%71.52%
Revenue Next Year20.88%
Revenue Next 2Y16.32%
Revenue Next 3Y15.21%
Revenue Next 5YN/A
EBIT growth 1Y14.69%
EBIT growth 3Y35.31%
EBIT growth 5Y44.57%
EBIT Next Year90.6%
EBIT Next 3Y31.45%
EBIT Next 5YN/A
FCF growth 1Y-124.9%
FCF growth 3Y-40.64%
FCF growth 5Y-15.22%
OCF growth 1Y-46.45%
OCF growth 3Y8.09%
OCF growth 5Y22.4%