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Innovative Solutions And Support (ISSC)
NASDAQ:ISSC
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Innovative Solutions And Support
(NASDAQ:ISSC)
76Outperform
Innovative Solutions And Support (ISSC) vs. S&P 500 (SPY)
Market Cap
$110.36M
Dividend YieldN/A
Average Volume (3M)162.49K
Price to Earnings (P/E)16.8
Beta (1Y)0.81
Revenue Growth43.24%
EPS Growth4.37%
CountryUS
Employees133
SectorIndustrials
Sector Strength66
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.38
Shares Outstanding17,545,315
10 Day Avg. Volume67,405
30 Day Avg. Volume162,494
Financial Highlights & Ratios
PEG Ratio3.85
Price to Book (P/B)N/A
Price to Sales (P/S)2.17
Price to Cash Flow (P/CF)15.80
P/FCF Ratio13.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Innovative Solutions And Support Business Overview & Revenue Model
Company DescriptionInnovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottle, and cockpit display systems in the United States and internationally. It offers flat panel display systems that replicate 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. In addition, it offers digital air data computers that calculate various air data parameters, such as altitude, airspeed, vertical speed, angle of attack, and other information; integrated air data computers and display units, which calculate and convey air data information; altitude displays that convey aircraft altitude measurements; airspeed displays that convey various airspeed measurements; and altitude alerters. Further, the company offers the engine and fuel displays that convey information related to fuel and oil levels, and engine activity, including oil and hydraulic pressure and temperature; integrated global navigation systems; ThrustSense, a full regime autothrottle; and utility management systems. It serves commercial air transport carriers and corporate/general aviation companies, the Department of Defense and its commercial contractors, aircraft operators, aircraft modification centers, government agencies, and foreign militaries, as well as original equipment manufacturers. Innovative Solutions and Support, Inc. was incorporated in 1988 and is based in Exton, Pennsylvania.
How the Company Makes MoneyISSC makes money primarily by selling its avionics products to commercial air transport, military, and business aviation markets. The company's revenue streams include direct sales of hardware and software solutions, as well as maintenance and support services. ISSC often engages in long-term contracts with aircraft manufacturers and fleet operators, providing them with integrated cockpit solutions and aftermarket services. Additionally, the company may benefit from partnerships or collaborations with other aerospace and defense firms, contributing to its overall earnings.
Innovative Solutions And Support Financial Statement Overview
Summary
Innovative Solutions And Support shows strong financial health with robust revenue growth and healthy profit margins. The balance sheet is solid but rising debt warrants attention. Cash flows are robust, supporting operational and strategic flexibility.Income Statement
The company has demonstrated robust revenue growth, with a notable increase from 2023 to TTM 2024. Gross profit and net profit margins are strong, reflecting efficient cost management. EBIT and EBITDA margins are healthy, indicating solid operational performance. However, the slight decrease in net income from the previous period suggests potential margin pressures.85
Very Positive
Balance Sheet
The balance sheet shows a healthy equity position with a moderate Debt-to-Equity ratio, reflecting manageable leverage. The Equity Ratio indicates strong financial stability. However, the increase in total debt over recent periods may suggest rising financial obligations.78
Positive
Cash Flow
Operating cash flow remains positive, supporting the company's ability to fund operations. Free cash flow has grown significantly, demonstrating improved cash management. The operating cash flow to net income ratio is strong, indicating effective cash conversion. Nonetheless, fluctuations in investing cash flows could indicate capital allocation risks.82
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 53.86M | 47.20M | 34.81M | 27.74M | 23.04M | 21.60M | Gross Profit |
| 27.00M | 25.91M | 21.31M | 16.67M | 12.78M | 11.80M | EBIT |
| 9.39M | 9.66M | 7.77M | 7.22M | 3.90M | 2.75M | EBITDA |
| 11.11M | 11.89M | 8.73M | 7.71M | 4.33M | 3.18M | Net Income Common Stockholders |
| 6.68M | 7.00M | 6.03M | 5.52M | 5.06M | 3.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 23.69M | 538.98K | 3.10M | 17.25M | 8.27M | 12.60M | Total Assets |
| 41.62M | 82.38M | 62.96M | 34.71M | 27.09M | 41.55M | Total Debt |
| 0.00 | 28.03M | 19.51M | 28.68K | 28.68K | 45.13K | Net Debt |
| -23.69M | 27.49M | 16.42M | -17.22M | -8.24M | -12.56M | Total Liabilities |
| 3.84M | 35.74M | 24.32M | 3.96M | 2.50M | 13.78M | Stockholders Equity |
| 37.78M | 46.64M | 38.64M | 30.75M | 24.59M | 27.77M |
| Cash Flow | Free Cash Flow | ||||
| 2.69M | 5.14M | 1.80M | 5.93M | 4.25M | 2.07M | Operating Cash Flow |
| 3.42M | 5.80M | 2.10M | 6.09M | 4.59M | 2.19M | Investing Cash Flow |
| -19.19M | -16.88M | -36.16M | 2.59M | -340.68K | -118.80K | Financing Cash Flow |
| 15.90M | 8.53M | 19.91M | 301.15K | -19.77M | -705.33K |
Innovative Solutions And Support Technical Analysis
Negative
6.61
Price Trends
8.42
Negative
8.27
Negative
7.40
Negative
Market Momentum
-0.43
Negative
35.56
Neutral
17.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISSC, the sentiment is Negative. The current price of 6.61 is below the 20-day moving average (MA) of 6.68, below the 50-day MA of 8.42, and below the 200-day MA of 7.40, indicating a bearish trend. The MACD of -0.43 indicates Negative momentum. The RSI at 35.56 is Neutral, neither overbought nor oversold. The STOCH value of 17.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISSC.
Innovative Solutions And Support Risk Analysis
Innovative Solutions And Support disclosed 37 risk factors in its most recent earnings report. Innovative Solutions And Support reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Innovative Solutions And Support Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $32.41B | 66.10 | 16.18% | 0.08% | 23.06% | 32.43% | |
76 Outperform | $110.36M | 16.82 | 15.23% | ― | 43.24% | 4.37% | |
76 Outperform | $23.31B | 28.93 | 8.73% | ― | 0.53% | -7.18% | |
62 Neutral | $8.07B | 13.60 | 3.76% | 3.13% | 3.60% | -14.67% | |
61 Neutral | $2.57B | ― | -6.10% | ― | -1.21% | -4.63% | |
59 Neutral | $4.54B | 274.86 | 1.40% | ― | 9.57% | ― | |
58 Neutral | $3.36B | 104.18 | 3.94% | ― | 5.21% | ― |
* Industrials Sector Average
Performance Comparison
ISSC
Innovative Solutions And Support
6.61
-0.83
-11.16%
AVAV
AeroVironment
126.84
-20.06
-13.66%
HEI
HEICO
270.10
82.33
43.85%
KTOS
Kratos Defense
31.16
13.06
72.15%
MRCY
Mercury Systems
45.12
16.39
57.05%
TDY
Teledyne Technologies
499.68
78.75
18.71%
Innovative Solutions And Support Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -37.58% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with significant revenue growth and strategic investments positioning the company well for future growth. Despite some short-term margin pressures and operational challenges, the company is making necessary investments to enhance its capabilities and support long-term growth objectives.Highlights
Significant Revenue Growth
The company delivered over 70% year-over-year growth in revenue, driven by new military programs and contributions from legacy platforms.
Backlog Increase
Backlog increased to approximately $81 million as of December 31, 2024, compared to $14.6 million in the prior year.
Strategic Investments
Significant investments made in infrastructure and systems capabilities to support high performance requirements of defense customers, including a new ERP system and expansion of the Exton, Pennsylvania facility.
Headcount Increase
The company increased its workforce by over 25% from last year to support strategic growth initiatives.
Positive EBITDA Growth
EBITDA was $2.7 million during the first quarter, up from $2.1 million last year, a 28% increase.
Lowlights
Gross Margin Decline
First quarter gross margin was 41.4%, down from 59.3% in the same period last year, due to several factors including higher depreciation expense and a shift in sales mix.
Decreased Net Income
First quarter net income was $700,000 or $0.04 a share, compared to net income of $1.1 million, or $0.06 per diluted share a year ago.
Operational Challenges and Costs
Duplicative costs and inefficiencies due to the transition of the Honeywell acquisition, higher headcount, and increased costs related to growth initiatives.
Company Guidance
During the first quarter of fiscal year 2025, Innovative Solutions and Support reported significant financial growth, with a 70% year-over-year increase in revenue, reaching $16 million, driven by new military programs and contributions from legacy platforms. The company achieved a 7% organic growth rate and a gross profit increase of approximately 20%, although gross margins declined to 41.4% from 59.3% due to investments in growth initiatives and recent acquisitions. The backlog as of December 31, 2024, was $81 million, a substantial rise from $14.6 million the prior year. The firm expects to deliver over 30% growth in both revenue and EBITDA compared to fiscal year 2024. Investments have been made to support expansion, including a $6 million facility expansion in Exton, Pennsylvania, and integration of products from a recent acquisition from Honeywell. Despite these expenses, the company remains focused on strategic acquisitions and is optimistic about future growth in military, commercial air transportation, and business aviation markets.Innovative Solutions And Support Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Innovative Solutions Appoints Denise Devine to Board
Positive
Jan 27, 2025
On January 27, 2025, Innovative Solutions & Support, Inc. announced the appointment of Denise L. Devine as an independent director to its Board of Directors. Ms. Devine, who also joins the Audit Committee, brings extensive experience in finance and business leadership, having founded and led companies in the health and wellness sector. Her appointment is part of IS&S’s strategy to enhance board expertise and support its long-term strategic goals. The move is expected to bolster the company’s leadership as it continues to advance in the aerospace industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.