Innovative Solutions and Support, Inc.
Innovative Solutions and Support, Inc. Fundamental Analysis
Innovative Solutions and Support, Inc. (ISSC) shows strong financial fundamentals with a PE ratio of 21.93, profit margin of 21.02%, and ROE of 31.11%. The company generates $0.1B in annual revenue with strong year-over-year growth of 78.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.6/100 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 ISSC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentISSC demonstrates superior asset utilization.
Valuation Score
ExcellentISSC trades at attractive valuation levels.
Growth Score
ModerateISSC shows steady but slowing expansion.
Financial Health Score
ExcellentISSC maintains a strong and stable balance sheet.
Profitability Score
ExcellentISSC achieves industry-leading margins.
Key Financial Metrics
Is ISSC Expensive or Cheap?
P/E Ratio
ISSC trades at 21.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ISSC's PEG of 1.03 indicates fair valuation.
Price to Book
The market values Innovative Solutions and Support, Inc. at 6.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.37 times EBITDA. This signals the market has high growth expectations.
How Well Does ISSC Make Money?
Net Profit Margin
For every $100 in sales, Innovative Solutions and Support, Inc. keeps $21.02 as profit after all expenses.
Operating Margin
Core operations generate 27.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.11 in profit for every $100 of shareholder equity.
ROA
Innovative Solutions and Support, Inc. generates $17.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Innovative Solutions and Support, Inc. produces operating cash flow of $19.71M, showing steady but balanced cash generation.
Free Cash Flow
Innovative Solutions and Support, Inc. generates strong free cash flow of $12.32M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.69 in free cash annually.
FCF Yield
ISSC converts 2.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How ISSC Stacks Against Its Sector Peers
| Metric | ISSC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.93 | 26.49 | Better (Cheaper) |
| ROE | 31.11% | 1307.00% | Weak |
| Net Margin | 21.02% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.34 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 2.96 | 10.48 | Strong Liquidity |
| ROA | 17.24% | -1549793.00% (disorted) | Strong |
ISSC outperforms its industry in 5 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 Solutions and Support, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
276.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
360.71%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
484.97%
Industry Style: Cyclical, Value, Infrastructure
High Growth