IA Stock Analysis: Innovative Aerosystems | NASDAQ
Aerospace & Defense | NASDAQ, USA | Market Cap: 357m USD | 12M Return: 104.9% | US45769N1054 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 4.04M
EPS Trend: 94.8%
Rev. Trend: 98.4%
Warnings
No concerns identified
Tailwinds
Seasonality 11.8 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Innovative Aerosystems, Inc. (NASDAQ: IA) is a U.S.-based small-cap company headquartered in Exton, Pennsylvania, that engineers, manufactures, and supplies advanced avionic solutions for business aircraft, commercial airlines, military, and turboprop operators. Its product portfolio spans flight-critical systems, including autothrottles, air data and inertial reference systems, flat panel displays, LPV navigators, and communications/navigation/surveillance radios, alongside integrated offerings such as the Liberty flight deck and C-130 engine instrument display systems. The company rebranded from Innovative Solutions and Support, Inc. to Innovative Aerosystems, Inc. in October 2025, having been incorporated in 1988.
The business operates within the commercial and defense aerospace electronics segment, supplying cockpit avionics and flight management systems to both civilian and military aviation customers. Its diversified end-market exposure across business aviation, commercial carriers, and military retrofit programs provides multiple revenue streams tied to aircraft modernization and safety mandates, such as LPV approach capability requirements.
- Military avionics contracts expand with C-130 program wins
- Liberty Flight Deck retrofit orders accelerate cockpit modernization
- FAA mandates drive demand for LPV and air data upgrades
| Net Income: 19.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 4.06 > 1.0 |
| NWC/Revenue: 45.88% < 20% (prev 60.45%; Δ -14.58% < -1%) |
| CFO/TA 0.13 > 3% & CFO 18.5m > Net Income 19.1m |
| Net Debt (43.6m) to EBITDA (31.6m): 1.38 < 3 |
| Current Ratio: 2.97 > 1.5 & < 3 |
| Outstanding Shares: last quarter (18.3m) vs 12m ago 3.69% < -2% |
| Gross Margin: 54.94% > 18% (prev 54.90%; Δ 0.04% > 0.5%) |
| Asset Turnover: 77.71% > 50% (prev 51.42%; Δ 26.29% > 0%) |
| Interest Coverage Ratio: 10.90 > 6 (EBIT TTM 27.5m / Interest Expense TTM 2.52m) |
| A: 0.29 (Total Current Assets 64.4m - Total Current Liabilities 21.7m) / Total Assets 148.0m |
| B: 0.27 (Retained Earnings 40.3m / Total Assets 148.0m) |
| C: 0.23 (EBIT TTM 27.5m / Avg Total Assets 119.9m) |
| D: 1.09 (Book Value of Equity 77.2m / Total Liabilities 70.8m) |
| Altman-Z'' = 5.47 = AAA |
| DSRI: 0.78 (Receivables 17.7m/11.5m, Revenue 93.2m/47.2m) |
| GMI: 1.00 (GM 54.90% / 54.94%) |
| AQI: 1.15 (AQ_t 0.42 / AQ_t-1 0.37) |
| SGI: 1.97 (Revenue 93.2m / 47.2m) |
| TATA: 0.00 (NI 19.1m - CFO 18.5m) / TA 148.0m) |
| Beneish M = -2.42 (Cap -4..+1) = BBB |
As of October 29, 2026, the stock is trading at USD 20.74 with a total of 163,050 shares traded. Over the past week, the price has changed by +4.54%, over one month by +9.74%, over three months by +8.25% and over the past year by +104.94%.
Current recommended Stop Loss: 18.80 (which is 9.4% or 2.3 ATR below the current price).
Innovative Aerosystems has received a consensus analysts rating of 5.00. Therefore, it is recommended to buy IA.
- StrongBuy: 4
- Buy: 0
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 33.3 | 60.3% |
P/E Trailing = 18.4444
P/E Forward = 9.4967
P/S = 3.8277
P/B = 4.6187
P/EG = 0.8254
Revenue TTM = 93.2m USD
EBIT TTM = 27.5m USD
EBITDA TTM = 31.6m USD
Long Term Debt = 48.7m USD (from longTermDebt, last quarter)
Short Term Debt = 5.64m USD (from shortTermDebt, last quarter)
Debt = 54.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 2.10k
Net Debt = 43.6m USD (calculated: Debt 54.3m - CCE 10.7m)
Enterprise Value = 400.2m USD (356.6m + Debt 54.3m - CCE 10.7m)
Interest Coverage Ratio = 10.90 (Ebit TTM 27.5m / Interest Expense TTM 2.52m)
EV/FCF = 28.00x (Enterprise Value 400.2m / FCF TTM 14.3m)
FCF Yield = 3.57% (FCF TTM 14.3m / Enterprise Value 400.2m)
FCF Margin = 15.34% (FCF TTM 14.3m / Revenue TTM 93.2m)
Net Margin = 20.50% (Net Income TTM 19.1m / Revenue TTM 93.2m)
Gross Margin = 54.94% ((Revenue TTM 93.2m - Cost of Revenue TTM 42.0m) / Revenue TTM)
Gross Margin QoQ = 51.65% (prev 51.13%)
Tobins Q-Ratio = 2.70 (Enterprise Value 400.2m / Total Assets 148.0m)
Interest Expense / Debt = 4.64% (Interest Expense 2.52m / Debt 54.3m)
Taxrate = 22.50% (5.54m / 24.6m)
NOPAT = 21.3m (EBIT 27.5m * (1 - 22.50%))
Current Ratio = 2.97 (Total Current Assets 64.4m / Total Current Liabilities 21.7m)
Debt / Equity = 0.70 (Debt 54.3m / totalStockholderEquity, last quarter 77.2m)
Debt / EBITDA = 1.38 (Net Debt 43.6m / EBITDA 31.6m)
Debt / FCF = 3.05 (Net Debt 43.6m / FCF TTM 14.3m)
Total Stockholder Equity = 70.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 15.93% (Net Income 19.1m / Total Assets 148.0m)
RoE = 27.02% (Net Income TTM 19.1m / Total Stockholder Equity 70.7m)
RoCE = 23.01% (EBIT 27.5m / Capital Employed (Equity 70.7m + L.T.Debt 48.7m))
RoIC = 16.72% (NOPAT 21.3m / Invested Capital 127.2m)
WACC = 11.32% (E(356.6m)/V(410.9m) * Re(12.50%) + D(54.3m)/V(410.9m) * Rd(4.64%) * (1-Tc(0.22)))
Discount Rate = 12.50% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.14 | Cagr: 3.25%
[DCF] Terminal Value 68.98% ; FCFF base≈10.6m ; Y1≈12.2m ; Y5≈17.9m
[DCF] Fair Price = 7.43 (EV 176.7m - Net Debt 43.6m = Equity 133.0m / Shares 17.9m; r=11.32% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 94.80 | EPS CAGR: 71.72% | SUE: N/A | # QB: 0
Revenue Correlation: 98.42 | Revenue CAGR: 55.62% | SUE: N/A | # QB: 0
EPS current Quarter (2026-12-31): EPS=0.23 | Chg30d=+2.22% | Revisions=-25% | Analysts=3
EPS current Year (2026-09-30): EPS=1.11 | Chg30d=+17.46% | Revisions=+25% | GrowthEPS=+23.1% | GrowthRev=+18.2%
EPS next Year (2027-09-30): EPS=1.09 | Chg30d=+8.67% | Revisions=+25% | GrowthEPS=-2.1% | GrowthRev=+19.0%
[Analyst] Revisions Ratio: +17% (up=2, down=1)