# Innovative Solutions and Support Inc. (IA) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $18.52, market value $331 million.

## Valuation
- **P/E (trailing): 17.5×** (5-yr avg 20.7×, 3-yr avg 17.4×). Innovative Solutions and Support Inc. trades at 17.5× trailing earnings, close to its own five-year average of 20.7×. The Technology median in the September 2026 study was 32.1×. Forward P/E is 17.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.14**. A PEG of 0.14 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.6×**. Each dollar of revenue is priced at 3.6×.
- **Price / book: 4.3×**. The shares trade at 4.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 11.9×**. Enterprise value is 11.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.3%** (5-yr avg 3.3%). Free cash flow equals 4.3% of the market value, above its five-year average of 3.3%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 5.7%**. The inverse of the P/E: 5.7% of the price is earned each year.

## Profitability
- **Gross margin: 54.9%**. Innovative Solutions and Support Inc. keeps 54.9% of revenue after the direct cost of what it sells.
- **Operating margin: 27.4%**. 27.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 18.5%**. 18.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 24.2%**. 24.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 23.0%**. Return on all capital, debt included, is 23.0%: comfortably above what that capital costs.
- **Return on assets: 18.5%**. Each dollar of assets produces 18.5% of profit.

## Growth
- **Revenue growth (1 yr): 78.6%** (3-yr 44.8%/yr, 5-yr 31.3%/yr). Revenue grew 78.6% over the last year, against 31.3% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 120.0%** (3-yr 40.1%/yr, 5-yr 35.9%/yr). Earnings per share rose 120.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 4.6%/yr**. Free cash flow has compounded at 4.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.37**. Debt is 0.37 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 10.1×**. Operating profit covers interest 10.1× over, a safe margin.
- **Current ratio: 3.04** (quick 3.04). Current assets cover the next year's liabilities 3.04 times.
- **Altman Z-score: 7.86**. A Z-score of 7.86 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Innovative Solutions and Support Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (4 analysts). 4 analysts cover Innovative Solutions and Support Inc.; the consensus is strong_buy, with an average price target of $33.25 (+80% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 52.9%** (YTD -2.2%, 3-mo 7.1%). The shares are up 52.9% over twelve months including dividends.
- **From 52-week high: -40.1%** (127.8% above the low). Trading 40% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 2.51** (volatility 77%). Beta of 2.51 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=IA · Page: https://foliofundamentals.com/stocks/ia

Not investment advice.