Innovative Solutions And Support (ISSC) AI Stock Analysis

• Market Cap: $155.73M
• Dividend Yield: N/A
• Average Volume (3M): 338.57K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.39
• Revenue Growth: 72.82%
• EPS Growth: 80.22%
• Country: US
• Employees: 133
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.14
• Shares Outstanding: 17,636,625
• 10 Day Avg. Volume: 298,715
• 30 Day Avg. Volume: 338,572
• PEG Ratio: 1.14
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 2.41
• P/FCF Ratio: 22.15
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 3.49
• Enterprise Value/Gross Profit: 7.72
• Enterprise Value/Ebitda: 13.75
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $11.50 ▲(0.26% Upside)

Innovative Solutions And Support's strong financial performance and strategic growth initiatives are key strengths, contributing positively to the overall score. However, bearish technical indicators and challenges in maintaining gross margins present risks. The stock's reasonable valuation provides some support, but the lack of a dividend yield may deter income-focused investors.

Innovative Solutions And Support Business Overview & Revenue Model

Company Description

Innovative Solutions And Support (ISSC) is a technology-driven company specializing in providing advanced software solutions and support services to various industries, including aerospace, defense, and commercial sectors. The company focuses on delivering cutting-edge systems for mission planning, logistics, and data analysis, ensuring clients achieve operational efficiency and enhanced decision-making capabilities. ISSC is committed to innovation, leveraging state-of-the-art technology to meet the evolving needs of its customers.

How the Company Makes Money

ISSC generates revenue primarily through the sale of software licenses, subscription services, and maintenance contracts for its technological solutions. The company also earns money by providing consulting services, training, and technical support to its clients, which are critical for the successful implementation and use of their products. Key revenue streams include long-term contracts with government and defense agencies, as well as partnerships with major technology firms that enhance their service offerings and market reach. Additionally, ISSC may benefit from recurring revenue through software-as-a-service (SaaS) models, which provide ongoing income as clients subscribe to their solutions.

Innovative Solutions And Support Financial Statement Overview

Summary

Innovative Solutions And Support exhibits strong financial performance with robust revenue growth and healthy profitability margins. The balance sheet is stable, with manageable leverage and strong returns on equity. Cash flow generation is impressive, supporting future growth initiatives. However, careful monitoring of cost pressures and debt levels is essential.

Income Statement

Innovative Solutions And Support has demonstrated strong revenue growth with a 19.03% increase in the TTM period, indicating robust demand for its products. The company maintains healthy profitability with a gross profit margin of 45.18% and a net profit margin of 15.11%. The EBIT and EBITDA margins are also solid at 20.88% and 25.39%, respectively, showcasing efficient cost management. However, the slight decline in gross profit margin compared to previous years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.41, indicating moderate leverage. The return on equity is strong at 22.85%, reflecting effective utilization of shareholder funds. The equity ratio stands at 61.88%, suggesting a solid equity base. However, the increase in total debt over the years warrants monitoring to ensure it does not impact financial flexibility.

Cash Flow

The company has shown impressive free cash flow growth of 119.02% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.96, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is 0.48, suggesting a balanced approach to reinvestment and shareholder returns. Continued focus on cash flow management will be crucial for sustaining growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.43M	47.20M	34.81M	27.74M	23.04M	21.60M
Gross Profit	34.99M	25.91M	21.31M	16.67M	12.78M	11.80M
EBITDA	19.66M	11.89M	8.73M	7.71M	4.33M	3.18M
Net Income	11.70M	7.00M	6.03M	5.52M	5.06M	3.27M
Balance Sheet
Total Assets	91.78M	82.38M	62.96M	34.71M	27.09M	41.55M
Cash, Cash Equivalents and Short-Term Investments	601.76K	538.98K	3.10M	17.25M	8.27M	12.60M
Total Debt	23.26M	28.03M	19.51M	28.68K	42.98K	45.13K
Total Liabilities	35.00M	35.74M	24.32M	3.96M	2.50M	13.78M
Stockholders Equity	56.79M	46.64M	38.64M	30.75M	24.59M	27.77M
Cash Flow
Free Cash Flow	5.13M	5.14M	1.80M	5.93M	4.25M	2.07M
Operating Cash Flow	10.78M	5.80M	2.10M	6.09M	4.59M	2.19M
Investing Cash Flow	-24.10M	-16.88M	-36.16M	2.59M	-340.68K	-118.80K
Financing Cash Flow	13.40M	8.53M	19.91M	301.15K	-19.77M	-705.33K

Innovative Solutions And Support Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.47 is above the 20-day moving average (MA) of 9.79, above the 50-day MA of 10.98, and above the 200-day MA of 10.69, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 31.00 is Neutral, neither overbought nor oversold. The STOCH value of 29.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	$155.73M	13.47	23.40%	―	72.82%	80.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCO	58 Neutral	$1.44B	―	-5.27%	―	3.16%	-213.56%
MRCY	56 Neutral	$4.39B	―	-2.24%	―	8.63%	72.72%
NPK	54 Neutral	$709.19M	18.20	10.69%	1.01%	34.75%	14.31%
EVEX	43 Neutral	$1.58B	―	-115.63%	―	―	-33.69%
EVTL	25 Underperform	$423.67M	―	―	―	―	―

Innovative Solutions And Support Corporate Events

Innovative Aerosystems Appoints Richard Silfen to Board

Innovative Solutions & Support, Inc., operating as Innovative Aerosystems, announced the appointment of Richard Silfen as an independent director to its Board of Directors on October 28, 2025. This strategic addition aims to enhance the board’s expertise in capital markets and transactions, aligning with the company’s long-term strategy and commitment to growth in the aerospace industry.

The most recent analyst rating on (ISSC) stock is a Buy with a $11.50 price target. To see the full list of analyst forecasts on Innovative Solutions And Support stock, see the ISSC Stock Forecast page.

Innovative Solutions & Support Reports Strong Q3 Growth

Innovative Solutions & Support’s recent earnings call painted a picture of robust growth tempered by some operational challenges. The company reported strong revenue growth and strategic investments in facility expansion and acquisitions, supported by a new credit facility. However, challenges such as declining gross margins and expected temporary revenue dips due to transition activities were also evident.

Innovative Solutions & Support Reports Strong Q3 2025 Growth

Innovative Solutions & Support, Inc. (IS&S) is a U.S.-based company that specializes in providing advanced avionic solutions across commercial, business aviation, and military markets. The company is known for its innovative and cost-effective solutions, catering to both airframe manufacturers and aftermarket services.