21.64 USD
+0.47 (+2.22%)
21.662 USD
+0.02 (+0.1%)
We assign a fundamental rating of 7 out of 10 to ISSC. ISSC was compared to 73 industry peers in the Aerospace & Defense industry. ISSC gets an excellent profitability rating and is at the same time showing great financial health properties. ISSC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, ISSC could be worth investigating further 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.
- 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's Return On Assets of 15.12% is amongst the best of 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
- ISSC has a Profit Margin of 18.54%. This is amongst the best in the industry. ISSC outperforms 98.63% of its industry peers.
- In the last couple of years the Profit Margin of ISSC has grown nicely.
- With an excellent Operating Margin value of 23.81%, ISSC belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
- 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
- ISSC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for ISSC has been increased compared to 1 year ago.
- ISSC has more shares outstanding than it did 5 years ago.
- ISSC has a better debt/assets ratio than last year.
2.2 Solvency
- ISSC has an Altman-Z score of 8.01. This indicates that ISSC is financially healthy and has little risk of bankruptcy at the moment.
- ISSC's Altman-Z score of 8.01 is fine compared to the rest of the industry. ISSC outperforms 68.49% 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.
- With an excellent Debt to FCF ratio value of 3.55, ISSC belongs to the best of the industry, outperforming 80.82% of the companies in the same industry.
- ISSC has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of ISSC (0.34) is better than 61.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 8.01 |
ROIC/WACC1.86
WACC9.8%
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.
- ISSC has a better Current ratio (3.04) than 61.64% of its industry peers.
- A Quick Ratio of 1.50 indicates that ISSC should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.50, ISSC perfoms like the industry average, outperforming 54.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- ISSC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.00%, which is quite impressive.
- ISSC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.77% yearly.
- Looking at the last year, ISSC shows a very strong growth in Revenue. The Revenue has grown by 78.60%.
- The Revenue has been growing by 31.30% on average over the past years. This is a very strong growth!
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
- The Earnings Per Share is expected to grow by 4.37% on average over the next years.
- Based on estimates for the next years, ISSC will show a quite strong growth in Revenue. The Revenue will grow by 10.78% on average per year.
EPS Next Y-9.65%
EPS Next 2Y4.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.61%
Revenue Next 2Y7.6%
Revenue Next 3Y10.78%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.72, the valuation of ISSC can be described as expensive.
- 87.67% of the companies in the same industry are more expensive than ISSC, based on the Price/Earnings ratio.
- ISSC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 29.57, which means the current valuation is very expensive for ISSC.
- 76.71% 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 24.26, ISSC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 29.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ISSC is valued cheaper than 87.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ISSC is valued a bit cheaper than the industry average as 64.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.18 | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
- ISSC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y4.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- ISSC does not give a dividend.
| 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 4 / 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%.