ISSC Stock Analysis: Innovative Solutions Support | NASDAQ
Aerospace & Defense | NASDAQ, USA | Market Cap: 329m USD | 12M Return: 30.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 6.85M
EPS Trend: 90.0%
Qual. Beats: 0
Rev. Trend: 99.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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: ISSC), formerly known as Innovative Solutions and Support, Inc., is a U.S.-based aerospace company that designs, manufactures, and supplies advanced avionic systems. Its product portfolio includes autothrottles, LPV navigators, standby displays, radio management systems, air data and inertial reference systems, flat panel displays, integrated global navigation and GPS units, and C-130 engine instrument display systems, including its proprietary Liberty Flight Deck upgrade. The company serves a diversified customer base across business aviation, commercial airlines, military, and turboprop operators.
Operating within the Aerospace & Defense sub-industry, ISSC is a small-cap supplier focused primarily on retrofit and upgrade avionics for existing aircraft platforms rather than OEM airframe production. This positions the company in the niche but recurring avionics modernization market, which benefits from regulatory mandates (such as NextGen and ADS-B compliance) that drive demand for cockpit upgrades. Incorporated in 1988 and headquartered in Exton, Pennsylvania, the company has been publicly traded since its 2000 IPO and rebranded to Innovative Aerosystems in October 2025.
- Military C-130 avionics retrofit orders accelerate defense revenue growth
- FAA NextGen mandates drive flat panel display retrofit demand
- Competition from Garmin and Honeywell pressures pricing and margins
| 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 (28.4m): 1.70 < 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 48.54%; Δ 0.29% > 0.5%) |
| Asset Turnover: 79.39% > 50% (prev 72.38%; Δ 7.01% > 0%) |
| Interest Coverage Ratio: 12.87 > 6 (EBIT TTM 24.6m / 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: 0.22 (EBIT TTM 24.6m / Avg Total Assets 114.1m) |
| D: 1.09 (Book Value of Equity 72.1m / Total Liabilities 66.2m) |
| Altman-Z'' = 5.18 = AAA |
| DSRI: 0.68 (Receivables 14.8m/15.6m, Revenue 90.6m/65.1m) |
| GMI: 0.99 (GM 48.54% / 48.83%) |
| 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 = -2.87 (Cap -4..+1) = A |
As of July 10, 2026, the stock is trading at USD 18.48 with a total of 213,076 shares traded. Over the past week, the price has changed by +3.65%, over one month by +2.55%, over three months by -27.70% and over the past year by +30.23%.
Current recommended Stop Loss: 17.30 (which is 6.4% or 1.2 ATR below the current price).
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 | 52.9% |
P/E Trailing = 19.3579
P/E Forward = 9.4967
P/S = 3.6333
P/B = 4.5705
P/EG = 0.8254
Revenue TTM = 90.6m USD
EBIT TTM = 24.6m USD
EBITDA TTM = 28.4m 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 = 377.2m USD (329.0m + Debt 54.9m - CCE 6.76m)
Interest Coverage Ratio = 12.87 (Ebit TTM 24.6m / Interest Expense TTM 1.92m)
EV/FCF = 28.59x (Enterprise Value 377.2m / FCF TTM 13.2m)
FCF Yield = 3.50% (FCF TTM 13.2m / Enterprise Value 377.2m)
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 = 2.73 (Enterprise Value 377.2m / Total Assets 138.3m)
Interest Expense / Debt = 3.49% (Interest Expense 1.92m / Debt 54.9m)
Taxrate = 25.00% (5.68m / 22.7m)
NOPAT = 18.5m (EBIT 24.6m * (1 - 25.00%))
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 = 1.70 (Net Debt 48.2m / EBITDA 28.4m)
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 = 21.46% (EBIT 24.6m / Capital Employed (Equity 65.6m + L.T.Debt 49.3m))
RoIC = 15.04% (NOPAT 18.5m / Invested Capital 122.9m)
WACC = 10.42% (E(329.0m)/V(384.0m) * Re(11.72%) + D(54.9m)/V(384.0m) * Rd(3.49%) * (1-Tc(0.25)))
Discount Rate = 11.72% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.22 | Cagr: 2.08%
[DCF] Terminal Value 71.58% ; FCFF base≈8.85m ; Y1≈10.1m ; Y5≈14.9m
[DCF] Fair Price = 6.51 (EV 164.6m - Net Debt 48.2m = Equity 116.4m / Shares 17.9m; r=10.42% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 90.03 | EPS CAGR: 57.40% | SUE: 0.51 | # QB: 0
Revenue Correlation: 99.03 | Revenue CAGR: 54.58% | SUE: 0.38 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.21 | Chg30d=-1.16% | Revisions=-25% | Analysts=4
EPS current Year (2026-09-30): EPS=0.92 | Chg30d=+21.85% | Revisions=+25% | GrowthEPS=+2.0% | GrowthRev=+11.2%
EPS next Year (2027-09-30): EPS=0.94 | Chg30d=+3.57% | Revisions=+0% | GrowthEPS=+2.5% | GrowthRev=+8.6%
[Analyst] Revisions Ratio: +0% (up=1, down=1)