Innovative Aerosystems, Inc. (ISSC)
Valuation Overview•Is Innovative Aerosystems, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
High-quality fundamentals with a strong composite quality score of 81/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: High-quality compounder, with profitability as the only relative weakness.
Wall Street is highly bullish, projecting significant upside. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
ISSC demonstrates strong business quality with robust profitability and healthy margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is driving exceptional top-line expansion (44.8% 3Y CAGR) paired with highly explosive earnings growth (40.1% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 25.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $22.4M | +78.6% | +44.8% | +31.3% | +15.4% | |
| EBITDA | $5.9M | — | +46.4% | — | — | |
| Net Income | $3.4M | +123.3% | +41.4% | — | — | |
| EPS (Diluted) | $0.19 | +120.0% | +40.1% | +35.9% | — | |
| Free Cash Flow | $667K | +32.2% | +4.6% | +26.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 48.8% | 53.9% | 55.4% | 54.3% |
| Operating Margin | 25.4% | 21.8% | 21.7% | 11.1% |
| Net Margin | 18.8% | 16.9% | 18.5% | 12.6% |
| FCF Margin | 14.6% | 8.0% | 12.8% | 10.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.20 | $0.26 | +30.0% | ||
| Q1'26 | $0.10 | $0.25 | +150.0% | ||
| Q4'25 | $0.11 | $0.34 | +216.9% | ||
| Q3'25 | $0.16 | $0.14 | -12.5% | ||
| Q2'25 | $0.12 | $0.30 | +150.0% | ||
| Q1'25 | $0.12 | $0.04 | -66.7% | ||
| Q4'24 | $0.12 | $0.21 | +75.0% | ||
| Q3'24 | $0.11 | $0.11 | +0.0% |
Total return is +39.4% (1Y), outperforming the benchmark by +14.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -8.2% | -17.5% | — |
| 1Y | +39.4% | +14.4% | — |
| 3YCAGR | +34.8% | +13.6% | — |
| 5YCAGR | +23.9% | +10.3% | — |
| 10YCAGR | +19.9% | +5.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Innovative Aerosystems, Inc. (ISSC) valuation, health, and returns.
Based on peer relative multiples, Innovative Aerosystems, Inc. appears Cheap versus peers compared to industry peers.
Innovative Aerosystems, Inc. has multiple valuation anchors: Peer Relative Fair Value: $75.69 | Wall Street Analyst Target: $23.00 (implying +33.6% upside). A convergence of these signals offers higher conviction.
Innovative Aerosystems, Inc. displays excellent financial health with a composite quality score of 81/100, supported by a Altman Z-Score of 6.8 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 18.8%.
Innovative Aerosystems, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Innovative Aerosystems, Inc.'s current growth trajectory is Accelerating. The company achieved +78.6% 1Y revenue growth and +120.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +44.8%.
Wall Street consensus is Buy based on 2 analysts, beating EPS expectations in 58% of recent quarters with a 3-quarter streak. The consensus price target represents a +33.6% change from current levels.
Investment risks for Innovative Aerosystems, Inc. include: -57.8% 1-year max drawdown, high beta (2.52x market volatility). Volatility risk is characterized by a beta of 2.52x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.