Innovative Aerosystems, Inc. Fundamental Analysis (NASDAQ: IA)
Innovative Aerosystems, Inc. Fundamental Analysis (NASDAQ: IA)
Innovative Aerosystems, Inc. (NASDAQ: IA) shows moderate financial fundamentals with a PE ratio of 17.04, profit margin of 20.50%, and ROE of 27.02%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze IA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIA demonstrates superior asset utilization.
Valuation Score
ExcellentIA trades at attractive valuation levels.
Growth Score
ModerateIA shows steady but slowing expansion.
Financial Health Score
ExcellentIA maintains a strong and stable balance sheet.
Profitability Score
ExcellentIA achieves industry-leading margins.
Key Financial Metrics
Is IA Expensive or Cheap?
P/E Ratio
IA trades at 17.04 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IA's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Innovative Aerosystems, Inc. at 4.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.95 times EBITDA. This is generally considered low.
How Well Does IA Make Money?
Net Profit Margin
For every $100 in sales, Innovative Aerosystems, Inc. keeps $20.50 as profit after all expenses.
Operating Margin
Core operations generate 27.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.02 in profit for every $100 of shareholder equity.
ROA
Innovative Aerosystems, Inc. generates $12.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Innovative Aerosystems, Inc. produces operating cash flow of $18.45M, showing steady but balanced cash generation.
Free Cash Flow
Innovative Aerosystems, Inc. generates strong free cash flow of $14.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.80 in free cash annually.
FCF Yield
IA converts 4.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How IA Stacks Against Its Sector Peers
| Metric | IA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.04 | 28.00 | Better (Cheaper) |
| ROE | 27.02% | 1139.00% | Weak |
| Net Margin | 20.50% | -21348.00% (disorted) | Strong |
| Debt/Equity | 0.70 | 0.80 | Neutral |
| Current Ratio | 2.97 | 21.78 | Strong Liquidity |
| ROA | 12.90% | -1330638.00% (disorted) | Strong |
IA outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Innovative Aerosystems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure