Innovative Solutions & Support, Inc. (ISSC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Innovative Solutions & Support, Inc.

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Why is Innovative Solutions & Support, Inc. ?

High Management Efficiency with a high ROCE of 28.31%

The company is Net-Debt Free

Healthy long term growth as Operating profit has grown by an annual rate 55.52%

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at USD 20.63 MM
RAW MATERIAL COST(Y) Fallen by 1.09% (YoY)
NET PROFIT(9M) Higher at USD 14.6 MM

With ROE of 27.57%, it has a attractive valuation with a 6.22 Price to Book Value

Over the past year, while the stock has generated a return of 39.35%, its profits have risen by 183.7% ; the PEG ratio of the company is 0.1

High Institutional Holdings at 62.57%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 9.38% over the previous quarter.

Market Beating Performance

The stock has generated a return of 39.35% in the last 1 year, much higher than market (S&P 500) returns of 25.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Innovative Solutions & Support, Inc. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Innovative Solutions & Support, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Innovative Solutions & Support, Inc.

39.35%

2.11

83.62%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.65%

EBIT Growth (5y)

55.52%

EBIT to Interest (avg)

7.31

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

0.80

Tax Ratio

19.89%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

62.57%

ROCE (avg)

28.31%

ROE (avg)

18.33%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.22

EV to EBIT

17.69

EV to EBITDA

15.58

EV to Capital Employed

5.27

EV to Sales

4.91

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

29.79%

ROE (Latest)

27.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 20.63 MM

RAW MATERIAL COST(Y)

Fallen by 1.09% (YoY

NET PROFIT(9M)

Higher at USD 14.6 MM

-5What is not working for the Company

INTEREST(9M)

At USD 1.51 MM has Grown at 43.98%

DEBT-EQUITY RATIO (HY)

Highest at 66.78 %

PRE-TAX PROFIT(Q)

Fallen at -32.77%

NET PROFIT(Q)

Fallen at -35.65%

Here's what is working for Innovative Solutions & Support, Inc.

Operating Cash Flow

Highest at USD 20.63 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by 1.09% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Innovative Solutions & Support, Inc.

Interest

At USD 1.51 MM has Grown at 43.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Fallen at -32.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Fallen at -35.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 66.78 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio