# Innovative Solutions and Support Inc. (ISSC) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Industrials / Aerospace & Defense. Price $24.78, market value $444 million.

## Valuation
- **P/E (trailing): 21.7×** (5-yr avg 20.7×, 3-yr avg 17.4×). Innovative Solutions and Support Inc. trades at 21.7× trailing earnings, close to its own five-year average of 20.7×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 23.8×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.20**. A PEG of 0.20 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 4.8×**. Each dollar of revenue is priced at 4.8×.
- **Price / book: 5.7×**. The shares trade at 5.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 15.7×**. Enterprise value is 15.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 3.2%** (5-yr avg 3.3%). Free cash flow equals 3.2% of the market value, in line with its five-year average of 3.3%.
- **Earnings yield: 4.6%**. The inverse of the P/E: 4.6% 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: 23.4%**. Return on all capital, debt included, is 23.4%: 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.
- **Altman Z-score: 9.20**. A Z-score of 9.20 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 $31.50 (+27% 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): 81.1%** (YTD 30.8%, 3-mo 52.4%). The shares are up 81.1% over twelve months including dividends.
- **From 52-week high: -19.9%** (204.8% above the low). Trading 20% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 77**. An RSI of 77 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 2.49** (volatility 77%). Beta of 2.49 against the S&P 500: the shares move much more than the market.

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

Not investment advice.