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ISSC

Innovative Solutions and SupportNasdaqGS:ISSC Stock Report

Market Cap

US$123.3m

7D

-1.2%

1Y

0.7%

Updated

27 Sep, 2021

Data

Company Financials
ISSC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends2/6

ISSC Overview

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, auto throttle, and cockpit display systems in the United States and internationally.

Innovative Solutions and Support Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Innovative Solutions and Support
Historical stock prices
Current Share PriceUS$7.15
52 Week HighUS$5.34
52 Week LowUS$8.24
Beta1.29
1 Month Change2.14%
3 Month Change13.13%
1 Year Change0.70%
3 Year Change190.65%
5 Year Change123.44%
Change since IPO-12.00%

Recent News & Updates

Shareholder Returns

ISSCUS Aerospace & DefenseUS Market
7D-1.2%2.3%0.1%
1Y0.7%25.2%35.3%

Return vs Industry: ISSC underperformed the US Aerospace & Defense industry which returned 25.2% over the past year.

Return vs Market: ISSC underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is ISSC's price volatile compared to industry and market?
ISSC volatility
ISSC Beta1.29
Industry Beta1.06
Market Beta1

Stable Share Price: ISSC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ISSC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198886Geoffrey S. Hedrickhttps://innovative-ss.com

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, auto throttle, and cockpit display systems in the United States and internationally. It offers flat panel display systems that replicates the display of analog or digital displays on one screen and replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; and flight management systems that complement the flat panel display system upgrade for commercial air transport aircraft. The company also provides integrated standby units, which incorporate the measurement and display of attitude, altitude, airspeed, and navigation data into a single standby/backup navigation instrument for military, commercial air transport, and corporate/general aviation applications.

Innovative Solutions and Support Fundamentals Summary

How do Innovative Solutions and Support's earnings and revenue compare to its market cap?
ISSC fundamental statistics
Market CapUS$123.31m
Earnings (TTM)US$4.78m
Revenue (TTM)US$22.47m

25.8x

P/E Ratio

5.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ISSC income statement (TTM)
RevenueUS$22.47m
Cost of RevenueUS$10.13m
Gross ProfitUS$12.33m
ExpensesUS$7.56m
EarningsUS$4.78m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.28
Gross Margin54.90%
Net Profit Margin21.27%
Debt/Equity Ratio0%

How did ISSC perform over the long term?

See historical performance and comparison

Dividends

7.0%

Current Dividend Yield

n/a

Payout Ratio

Valuation

Is Innovative Solutions and Support undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ISSC ($7.1) is trading below our estimate of fair value ($25.76)

Significantly Below Fair Value: ISSC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ISSC is poor value based on its PE Ratio (25.6x) compared to the US Aerospace & Defense industry average (19.6x).

PE vs Market: ISSC is poor value based on its PE Ratio (25.6x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ISSC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ISSC is overvalued based on its PB Ratio (5.3x) compared to the US Aerospace & Defense industry average (3x).


Future Growth

How is Innovative Solutions and Support forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Innovative Solutions and Support has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Innovative Solutions and Support performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISSC has high quality earnings.

Growing Profit Margin: ISSC's current net profit margins (21.3%) are higher than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: ISSC has become profitable over the past 5 years, growing earnings by 10.7% per year.

Accelerating Growth: ISSC's earnings growth over the past year (58.1%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: ISSC earnings growth over the past year (58.1%) exceeded the Aerospace & Defense industry 1.8%.


Return on Equity

High ROE: ISSC's Return on Equity (20.8%) is considered high.


Financial Health

How is Innovative Solutions and Support's financial position?


Financial Position Analysis

Short Term Liabilities: ISSC's short term assets ($17.3M) exceed its short term liabilities ($4.0M).

Long Term Liabilities: ISSC has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ISSC is debt free.

Reducing Debt: ISSC has not had any debt for past 5 years.

Debt Coverage: ISSC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ISSC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Innovative Solutions and Support current dividend yield, its reliability and sustainability?

6.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ISSC's dividend (7.04%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: ISSC's dividend (7.04%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ISSC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ISSC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average management tenure


CEO

Geoffrey S. Hedrick (78 yo)

13yrs

Tenure

US$408,099

Compensation

Mr. Geoffrey S. M. Hedrick founded Innovative Solutions & Support Inc. in February 1988 and has been its Chief Executive Officer since September 8, 2008. Mr. Hedrick served as Chief Executive Officer at In...


CEO Compensation Analysis

Compensation vs Market: Geoffrey S.'s total compensation ($USD408.10K) is about average for companies of similar size in the US market ($USD548.10K).

Compensation vs Earnings: Geoffrey S.'s compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ISSC's management team is seasoned and experienced (9.4 years average tenure).


Board Members

Experienced Board: ISSC's board of directors are seasoned and experienced ( 28.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Innovative Solutions and Support, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Innovative Solutions and Support, Inc.
  • Ticker: ISSC
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$123.312m
  • Shares outstanding: 17.25m
  • Website: https://innovative-ss.com

Number of Employees


Location

  • Innovative Solutions and Support, Inc.
  • 720 Pennsylvania Drive
  • Exton
  • Pennsylvania
  • 19341-1129
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:54
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.