Innovative Solutions And Support (ISSC) AI Stock Analysis

• Market Cap: $310.89M
• Dividend Yield: N/A
• Average Volume (3M): 522.81K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.36
• Revenue Growth: 58.67%
• EPS Growth: 70.38%
• Country: US
• Employees: 133
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 0.30
• Shares Outstanding: 17,604,155
• 10 Day Avg. Volume: 473,219
• 30 Day Avg. Volume: 522,810
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.44
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 7.91
• 1Y Price Target: $19.50
• Price Target Upside: 10.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $19.50 ▲(10.42% Upside)

Innovative Solutions And Support's strong financial performance and positive earnings call are the most significant factors contributing to its score. The technical analysis suggests caution due to overbought signals, and the valuation indicates the stock is fairly priced. The new credit agreement adds a positive strategic element.

Innovative Solutions And Support Business Overview & Revenue Model

Company Description

Innovative Solutions And Support (ISSC) is a company that specializes in the design, development, and manufacture of advanced technology solutions for the aerospace and defense industries. The company focuses on providing cutting-edge avionics, flat-panel display systems, and advanced monitoring and control systems that enhance the safety and efficiency of aircraft operations. ISSC's products are utilized by commercial, business, and military aviation sectors, establishing it as a leader in avionics innovation.

How the Company Makes Money

ISSC makes money primarily through the sale of its avionics products and systems to various sectors within the aerospace and defense industries. The company's revenue streams include direct sales to aircraft manufacturers, retrofitting and upgrading services for existing aircraft fleets, and long-term contracts with airlines and military organizations for the supply and maintenance of their advanced avionics systems. Significant partnerships with leading aircraft manufacturers and government defense agencies also contribute to ISSC's earnings by providing consistent demand and collaborative opportunities for technology development.

Innovative Solutions And Support Financial Statement Overview

Summary

Innovative Solutions And Support exhibits strong financial health with impressive revenue growth, robust profitability margins, and a stable balance sheet. The company's financial performance is well-aligned with industry dynamics, although increased leverage and negative free cash flow are areas to monitor.

Income Statement

Innovative Solutions And Support has demonstrated strong revenue growth, with total revenue increasing by 37.8% in the TTM compared to the prior year. The company maintains a solid gross profit margin of 50.2% and a net profit margin of 16.6% for the TTM, indicating efficient cost management and profitability. EBIT and EBITDA margins are also robust at 22.6% and 26.7%, respectively. These figures suggest a competitive position in the industry with healthy profitability metrics.

Balance Sheet

The balance sheet is solid, with a debt-to-equity ratio of 0.51, indicating moderate leverage. Return on equity (ROE) stands at 20.2% for the TTM, reflecting effective utilization of shareholder funds. The equity ratio of 59.5% signals a strong equity base relative to total assets, contributing to financial stability. However, the increase in total debt over recent periods should be monitored for any potential liquidity risks.

Cash Flow

Cash flow generation is consistent, with an operating cash flow to net income ratio of 0.42 for the TTM, indicating healthy cash conversion. The free cash flow to net income ratio of 0.22 suggests positive but limited free cash flow generation relative to profits. While free cash flow has decreased in the TTM, the company maintains sufficient operational cash flow to support ongoing activities and investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.20M	34.81M	27.74M	23.04M	21.60M
Gross Profit	25.91M	21.31M	16.67M	12.78M	11.80M
EBITDA	11.89M	8.73M	7.71M	4.33M	3.18M
Net Income	7.00M	6.03M	5.52M	5.06M	3.27M
Balance Sheet
Total Assets	82.38M	62.96M	34.71M	27.09M	41.55M
Cash, Cash Equivalents and Short-Term Investments	538.98K	3.10M	17.25M	8.27M	12.60M
Total Debt	28.03M	19.51M	28.68K	28.68K	45.13K
Total Liabilities	35.74M	24.32M	3.96M	2.50M	13.78M
Stockholders Equity	46.64M	38.64M	30.75M	24.59M	27.77M
Cash Flow
Free Cash Flow	5.14M	1.80M	5.93M	4.25M	2.07M
Operating Cash Flow	5.80M	2.10M	6.09M	4.59M	2.19M
Investing Cash Flow	-16.88M	-36.16M	2.59M	-340.68K	-118.80K
Financing Cash Flow	8.53M	19.91M	301.15K	-19.77M	-705.33K

Innovative Solutions And Support Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISSC, the sentiment is Positive. The current price of 17.66 is above the 20-day moving average (MA) of 15.86, above the 50-day MA of 14.00, and above the 200-day MA of 9.46, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 70.52 is Negative, neither overbought nor oversold. The STOCH value of 73.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISSC.

Innovative Solutions And Support Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISSC	74 Outperform	$310.89M	28.72	22.77%	―	58.67%	70.38%
CODA	72 Outperform	$83.58M	24.33	6.40%	―	15.63%	64.98%
VTSI	66 Neutral	$78.83M	54.43	3.10%	―	-29.61%	-78.85%
Sector *	64 Neutral	$10.65B	16.19	5.48%	2.12%	2.75%	-22.21%
CVU	59 Neutral	$41.99M	22.75	7.62%	―	-7.34%	-88.84%
XTIA	50 Neutral	$29.33M	―	-327.59%	―	―	―
SPCE	48 Neutral	$178.53M	―	-91.98%	―	-84.19%	55.27%

Innovative Solutions And Support Corporate Events

Innovative Solutions Secures $100 Million Credit Agreement

On July 18, 2025, Innovative Solutions and Support, Inc. entered into a new five-year, $100 million credit agreement with JPMorgan Chase Bank, replacing its previous $35 million line of credit. This agreement includes a $30 million revolving credit facility, a $25 million term loan, and a $45 million delayed draw term loan, with an option for additional loan commitments. The new credit facilities are intended to provide expanded liquidity and flexibility, supporting the company’s long-term growth strategy and capital allocation priorities.