(ISSC) Innovative Solutions Support - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NASDAQ (USA) | Market Cap: 294m USD | Total Return: 61.5% in 12m
Avg Turnover: 7.49M
EPS Trend: 94.2%
Qual. Beats: 0
Rev. Trend: 99.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Innovative Aerosystems, Inc. (ISSC), formerly known as Innovative Solutions and Support, Inc., designs and manufactures advanced flight guidance and cockpit display systems. The company’s portfolio includes autothrottles, flat panel displays, and integrated global navigation systems used across business, commercial, and military aviation sectors.
The aerospace electronics sector is characterized by high barriers to entry due to stringent FAA certification requirements and long product lifecycles. ISSC operates primarily as a Tier 2 or Tier 3 supplier, providing specialized components that improve fuel efficiency and pilot situational awareness in both new builds and aftermarket retrofits.
Investors can further evaluate these operational metrics and valuation trends at ValueRay.
- Autothrottle system demand across business and commercial aviation drives core revenue growth
- Expansion into military retrofit programs stabilizes long-term contract backlogs
- Integration of acquired Honeywell product lines enhances high-margin aftermarket service sales
- Supply chain constraints and rising engineering labor costs impact manufacturing margins
- FAA certification timelines for new cockpit technologies influence product launch schedules
| Net Income: 17.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 6.94 > 1.0 |
| NWC/Revenue: 40.57% < 20% (prev 50.64%; Δ -10.08% < -1%) |
| CFO/TA 0.15 > 3% & CFO 20.6m > Net Income 17.0m |
| Net Debt (48.2m) to EBITDA (26.7m): 1.80 < 3 |
| Current Ratio: 3.23 > 1.5 & < 3 |
| Outstanding Shares: last quarter (18.3m) vs 12m ago 3.73% < -2% |
| Gross Margin: 48.83% > 18% (prev 0.49%; Δ 4.83k% > 0.5%) |
| Asset Turnover: 79.39% > 50% (prev 72.38%; Δ 7.01% > 0%) |
| Interest Coverage Ratio: 12.00 > 6 (EBITDA TTM 26.7m / Interest Expense TTM 1.92m) |
| A: 0.27 (Total Current Assets 53.2m - Total Current Liabilities 16.5m) / Total Assets 138.3m |
| B: 0.26 (Retained Earnings 35.8m / Total Assets 138.3m) |
| C: 0.20 (EBIT TTM 23.0m / Avg Total Assets 114.1m) |
| D: 0.54 (Book Value of Equity 35.8m / Total Liabilities 66.2m) |
| Altman-Z'' = 4.51 = AA |
| DSRI: 0.68 (Receivables 14.8m/15.6m, Revenue 90.6m/65.1m) |
| GMI: 0.99 (GM 48.83% / 48.54%) |
| AQI: 1.24 (AQ_t 0.47 / AQ_t-1 0.37) |
| SGI: 1.39 (Revenue 90.6m / 65.1m) |
| TATA: -0.03 (NI 17.0m - CFO 20.6m) / TA 138.3m) |
| Beneish M = -2.89 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 16.41 with a total of 409,600 shares traded.
Over the past week, the price has changed by +0.80%,
over one month by -21.75%,
over three months by -34.98% and
over the past year by +61.52%.
Innovative Solutions Support has received a consensus analysts rating of 5.00. Therefore, it is recommended to buy ISSC.
- StrongBuy: 4
- Buy: 0
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 28.3 | 72.2% |
P/E Trailing = 17.2737
P/E Forward = 9.4967
P/S = 3.2421
P/B = 3.9353
P/EG = 0.8254
Revenue TTM = 90.6m USD
EBIT TTM = 23.0m USD
EBITDA TTM = 26.7m USD
Long Term Debt = 49.3m USD (from longTermDebt, last quarter)
Short Term Debt = 5.64m USD (from shortTermDebt, last quarter)
Debt = 54.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 2.10k
Net Debt = 48.2m USD (calculated: Debt 54.9m - CCE 6.76m)
Enterprise Value = 341.8m USD (293.6m + Debt 54.9m - CCE 6.76m)
Interest Coverage Ratio = 12.00 (Ebit TTM 23.0m / Interest Expense TTM 1.92m)
EV/FCF = 25.90x (Enterprise Value 341.8m / FCF TTM 13.2m)
FCF Yield = 3.86% (FCF TTM 13.2m / Enterprise Value 341.8m)
FCF Margin = 14.57% (FCF TTM 13.2m / Revenue TTM 90.6m)
Net Margin = 18.82% (Net Income TTM 17.0m / Revenue TTM 90.6m)
Gross Margin = 48.83% ((Revenue TTM 90.6m - Cost of Revenue TTM 46.3m) / Revenue TTM)
Gross Margin QoQ = 51.13% (prev 51.61%)
Tobins Q-Ratio = 2.47 (Enterprise Value 341.8m / Total Assets 138.3m)
Interest Expense / Debt = 3.49% (Interest Expense 1.92m / Debt 54.9m)
Taxrate = 22.63% (1.00m / 4.44m)
NOPAT = 17.8m (EBIT 23.0m * (1 - 22.63%))
Current Ratio = 3.23 (Total Current Assets 53.2m / Total Current Liabilities 16.5m)
Debt / Equity = 0.76 (Debt 54.9m / totalStockholderEquity, last quarter 72.1m)
Debt / EBITDA = 1.80 (Net Debt 48.2m / EBITDA 26.7m)
Debt / FCF = 3.65 (Net Debt 48.2m / FCF TTM 13.2m)
Total Stockholder Equity = 65.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 14.94% (Net Income 17.0m / Total Assets 138.3m)
RoE = 26.00% (Net Income TTM 17.0m / Total Stockholder Equity 65.6m)
RoCE = 20.01% (EBIT 23.0m / Capital Employed (Equity 65.6m + L.T.Debt 49.3m))
RoIC = 14.74% (NOPAT 17.8m / Invested Capital 120.7m)
WACC = 10.42% (E(293.6m)/V(348.5m) * Re(11.86%) + D(54.9m)/V(348.5m) * Rd(3.49%) * (1-Tc(0.23)))
Discount Rate = 11.86% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 73.03 | Cagr: 2.57%
[DCF] Terminal Value 71.59% ; FCFF base≈8.85m ; Y1≈10.1m ; Y5≈14.9m
[DCF] Fair Price = 6.51 (EV 164.6m - Net Debt 48.2m = Equity 116.5m / Shares 17.9m; r=10.42% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 94.23 | EPS CAGR: 64.09% | SUE: 0.60 | # QB: 0
Revenue Correlation: 99.03 | Revenue CAGR: 54.58% | SUE: 0.38 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.20 | Chg30d=-5.44% | Revisions=-20% | Analysts=3
EPS current Year (2026-09-30): EPS=0.94 | Chg30d=+25.17% | Revisions=+20% | GrowthEPS=+4.8% | GrowthRev=+11.2%
EPS next Year (2027-09-30): EPS=0.92 | Chg30d=+1.46% | Revisions=N/A | GrowthEPS=-2.3% | GrowthRev=+8.6%
[Analyst] Revisions Ratio: -20%