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Innovative Solutions and Support

Nasdaq:ISSC
Snowflake Description

Flawless balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ISSC
Nasdaq
$51M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottle, and cockpit display system in the United States and internationally. The last earnings update was 53 days ago. More info.


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  • Innovative Solutions and Support has significant price volatility in the past 3 months.
ISSC Share Price and Events
7 Day Returns
4.8%
NasdaqGS:ISSC
23.5%
US Aerospace & Defense
12.5%
US Market
1 Year Returns
-3.8%
NasdaqGS:ISSC
-10.8%
US Aerospace & Defense
-12.7%
US Market
ISSC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Innovative Solutions and Support (ISSC) 4.8% -45.7% -48.1% -3.8% 4.8% -19%
US Aerospace & Defense 23.5% -17% -23.7% -10.8% 4.4% 26.7%
US Market 12.5% -14.7% -21.5% -12.7% 5.4% 17.5%
1 Year Return vs Industry and Market
  • ISSC outperformed the Aerospace & Defense industry which returned -10.8% over the past year.
  • ISSC outperformed the Market in United States of America which returned -12.7% over the past year.
Price Volatility
ISSC
Industry
5yr Volatility vs Market

Value

 Is Innovative Solutions and Support undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Innovative Solutions and Support to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Innovative Solutions and Support.

NasdaqGS:ISSC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ISSC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.85 (1 + (1- 21%) (0.21%))
0.9
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.9 * 5.44%)
6.64%

Discounted Cash Flow Calculation for NasdaqGS:ISSC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Innovative Solutions and Support is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:ISSC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.64%)
2020 0.39 Est @ -55.03% 0.37
2021 0.24 Est @ -38% 0.21
2022 0.18 Est @ -26.08% 0.15
2023 0.15 Est @ -17.73% 0.11
2024 0.13 Est @ -11.89% 0.09
2025 0.12 Est @ -7.8% 0.08
2026 0.11 Est @ -4.94% 0.07
2027 0.11 Est @ -2.94% 0.07
2028 0.11 Est @ -1.53% 0.06
2029 0.11 Est @ -0.55% 0.06
Present value of next 10 years cash flows $1.00
NasdaqGS:ISSC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $0.11 × (1 + 1.74%) ÷ (6.64% – 1.74%)
$2.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2.24 ÷ (1 + 6.64%)10
$1.18
NasdaqGS:ISSC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1.00 + $1.18
$2.18
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2.18 / 16.98
$0.13
NasdaqGS:ISSC Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.13
Current discount Discount to share price of $3.03
= -1 x ($3.03 - $0.13) / $0.13
-2263.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Innovative Solutions and Support is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Innovative Solutions and Support's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Innovative Solutions and Support's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ISSC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.12
NasdaqGS:ISSC Share Price ** NasdaqGS (2020-03-30) in USD $3.03
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 37 Publicly-Listed Aerospace & Defense Companies 15x
United States of America Market PE Ratio Median Figure of 2,942 Publicly-Listed Companies 12.96x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Innovative Solutions and Support.

NasdaqGS:ISSC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ISSC Share Price ÷ EPS (both in USD)

= 3.03 ÷ 0.12

25.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Innovative Solutions and Support is overvalued based on earnings compared to the US Aerospace & Defense industry average.
  • Innovative Solutions and Support is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Innovative Solutions and Support's expected growth come at a high price?
Raw Data
NasdaqGS:ISSC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 30 Publicly-Listed Aerospace & Defense Companies 1.64x
United States of America Market PEG Ratio Median Figure of 2,006 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Innovative Solutions and Support, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Innovative Solutions and Support's assets?
Raw Data
NasdaqGS:ISSC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $2.16
NasdaqGS:ISSC Share Price * NasdaqGS (2020-03-30) in USD $3.03
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 51 Publicly-Listed Aerospace & Defense Companies 1.79x
United States of America Market PB Ratio Median Figure of 5,143 Publicly-Listed Companies 1.26x
NasdaqGS:ISSC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ISSC Share Price ÷ Book Value per Share (both in USD)

= 3.03 ÷ 2.16

1.4x

* Primary Listing of Innovative Solutions and Support.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Innovative Solutions and Support is good value based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Innovative Solutions and Support's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Innovative Solutions and Support has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Innovative Solutions and Support expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Innovative Solutions and Support has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.3%
Expected Aerospace & Defense industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Innovative Solutions and Support expected to grow at an attractive rate?
  • Unable to compare Innovative Solutions and Support's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Innovative Solutions and Support's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Innovative Solutions and Support's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ISSC Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 11.3%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ISSC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ISSC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 18 2 2
2019-09-30 18 2 2
2019-06-30 16 2 0
2019-03-31 15 0 -1
2018-12-31 15 -2 -3
2018-09-30 14 -2 -4
2018-06-30 14 -2 -3
2018-03-31 16 0 -2
2017-12-31 17 7 5
2017-09-30 17 6 5
2017-06-30 19 8 5
2017-03-31 21 8 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Innovative Solutions and Support is high growth as no earnings estimate data is available.
  • Unable to determine if Innovative Solutions and Support is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ISSC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Innovative Solutions and Support Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ISSC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.12
2019-09-30 0.11
2019-06-30 0.03
2019-03-31 -0.07
2018-12-31 -0.16
2018-09-30 -0.22
2018-06-30 -0.20
2018-03-31 -0.14
2017-12-31 0.29
2017-09-30 0.27
2017-06-30 0.31
2017-03-31 0.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Innovative Solutions and Support will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Innovative Solutions and Support's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Innovative Solutions and Support's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Capital Goods companies here
  3. Innovative Solutions and Support's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Innovative Solutions and Support's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Innovative Solutions and Support has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Innovative Solutions and Support performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Innovative Solutions and Support's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Innovative Solutions and Support has delivered over 20% year on year earnings growth in the past 5 years.
  • Innovative Solutions and Support has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Innovative Solutions and Support has become profitable in the last year making it difficult to compare the US Aerospace & Defense industry average.
Earnings and Revenue History
Innovative Solutions and Support's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Innovative Solutions and Support Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ISSC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 18.11 2.04 6.11 2.56
2019-09-30 17.57 1.85 5.88 2.49
2019-06-30 16.42 0.44 6.08 2.56
2019-03-31 15.22 -1.11 6.29 2.87
2018-12-31 14.74 -2.63 6.53 3.25
2018-09-30 13.85 -3.65 6.67 3.58
2018-06-30 14.43 -3.43 6.72 4.05
2018-03-31 15.58 -2.37 6.77 4.26
2017-12-31 16.51 4.88 6.91 4.29
2017-09-30 16.79 4.57 7.34 4.46
2017-06-30 18.78 5.15 7.27 4.59
2017-03-31 20.74 5.36 7.83 4.76
2016-12-31 24.75 1.01 8.53 5.03
2016-09-30 27.97 1.99 9.17 4.87
2016-06-30 24.89 -0.97 10.47 4.28
2016-03-31 23.30 -4.73 9.62 3.67
2015-12-31 19.93 -6.68 8.60 2.98
2015-09-30 20.07 -5.87 7.85 2.71
2015-06-30 26.85 -5.39 10.39 2.78
2015-03-31 32.50 -1.36 10.85 2.63
2014-12-31 39.71 -0.21 11.31 2.65
2014-09-30 44.10 0.20 11.11 2.62
2014-06-30 42.21 2.44 7.36 2.30
2014-03-31 40.42 2.26 7.50 2.21
2013-12-31 36.14 2.58 7.40 2.35
2013-09-30 31.57 1.89 7.46 2.58
2013-06-30 30.46 4.51 7.48 2.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Innovative Solutions and Support has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Innovative Solutions and Support used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Innovative Solutions and Support has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Innovative Solutions and Support's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Innovative Solutions and Support has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Innovative Solutions and Support's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Innovative Solutions and Support's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Innovative Solutions and Support is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Innovative Solutions and Support's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Innovative Solutions and Support's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Innovative Solutions and Support has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Innovative Solutions and Support Company Filings, last reported 3 months ago.

NasdaqGS:ISSC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 36.54 0.00 22.16
2019-09-30 36.21 0.00 22.42
2019-06-30 35.21 0.00 22.56
2019-03-31 34.70 0.00 21.24
2018-12-31 34.29 0.00 20.34
2018-09-30 34.15 0.00 20.39
2018-06-30 34.57 0.00 20.88
2018-03-31 35.61 0.00 23.44
2017-12-31 36.73 0.00 24.66
2017-09-30 37.61 0.00 24.68
2017-06-30 37.79 0.00 24.98
2017-03-31 37.78 0.00 23.69
2016-12-31 31.65 0.00 18.16
2016-09-30 32.85 0.00 18.77
2016-06-30 33.01 0.00 17.53
2016-03-31 32.96 0.00 17.21
2015-12-31 31.18 0.00 16.27
2015-09-30 31.34 0.00 16.28
2015-06-30 33.81 0.00 15.76
2015-03-31 37.29 0.00 15.57
2014-12-31 37.56 0.00 14.21
2014-09-30 37.01 0.00 15.21
2014-06-30 39.04 0.00 14.39
2014-03-31 38.30 0.00 15.28
2013-12-31 37.09 0.00 15.83
2013-09-30 35.99 0.00 16.39
2013-06-30 35.24 0.00 16.61
  • Innovative Solutions and Support has no debt.
  • Innovative Solutions and Support has not taken on any debt in the past 5 years.
  • Innovative Solutions and Support has no debt, it does not need to be covered by operating cash flow.
  • Innovative Solutions and Support has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Innovative Solutions and Support's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Innovative Solutions and Support has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Innovative Solutions and Support's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Innovative Solutions and Support dividends.
If you bought $2,000 of Innovative Solutions and Support shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Innovative Solutions and Support's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Innovative Solutions and Support's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ISSC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Innovative Solutions and Support has not reported any payouts.
  • Unable to verify if Innovative Solutions and Support's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Innovative Solutions and Support's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Innovative Solutions and Support has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Innovative Solutions and Support's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Innovative Solutions and Support afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Innovative Solutions and Support has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Innovative Solutions and Support's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Geoffrey S. Hedrick
COMPENSATION $408,212
AGE 76
TENURE AS CEO 11.4 years
CEO Bio

Mr. Geoffrey S. M. Hedrick founded Innovative Solutions & Support Inc. in February 1988 and has been its Chief Executive Officer since September 8, 2008. Mr. Hedrick served as Chief Executive Officer at Innovative Solutions & Support Inc. from February 1988 to November 30, 2007. Prior to founding Innovative Solutions & Support Inc., he served as the President and Chief Executive Officer of Smiths Industries, North American Aerospace Companies. He founded Harowe Systems, Inc. in 1971. He has over 35 Years of experience in the Avionics Industry. He has been the Executive Chairman of Innovative Solutions & Support Inc. since 1997 and its Executive Director since 1988. Mr. Hedrick holds a number of patents in the Electronics, Optoelectric, Electromagnetic, Aerospace and Contamination-control Fields.

CEO Compensation
  • Geoffrey S.'s compensation has increased in line with Innovative Solutions and Support recently becoming profitable.
  • Geoffrey S.'s remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Innovative Solutions and Support management team in years:

7.8
Average Tenure
64
Average Age
  • The average tenure for the Innovative Solutions and Support management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Geoffrey S. Hedrick

TITLE
Founder
COMPENSATION
$408K
AGE
76
TENURE
11.4 yrs

Shahram Askarpour

TITLE
President
COMPENSATION
$306K
AGE
62
TENURE
7.8 yrs

Relland Winand

TITLE
Company Secretary & CFO
COMPENSATION
$204K
AGE
64
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure and age of the Innovative Solutions and Support board of directors in years:

26.7
Average Tenure
75
Average Age
  • The average tenure for the Innovative Solutions and Support board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Geoffrey S. Hedrick

TITLE
Founder
COMPENSATION
$408K
AGE
76
TENURE
23.2 yrs

Glen Bressner

TITLE
Vice-Chairman & Presiding Director
COMPENSATION
$56K
AGE
58

Win Churchill

TITLE
Independent Director
COMPENSATION
$45K
AGE
79
TENURE
30.2 yrs

Bob Mittelstaedt

TITLE
Independent Director
COMPENSATION
$44K
AGE
75
TENURE
31.2 yrs

Roger Carolin

TITLE
Independent Director
COMPENSATION
$45K
AGE
63
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • Innovative Solutions and Support individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Feb 20 Sell Winston Churchill Individual 24. Feb 20 24. Feb 20 -68,000 $6.04 $-410,434
14. Feb 20 Sell Shahram Askarpour Individual 13. Feb 20 13. Feb 20 -2,000 $6.12 $-12,240
15. Aug 19 Sell Robert Mittelstaedt Individual 14. Aug 19 14. Aug 19 -14,133 $5.08 $-71,796
22. May 19 Sell Glen Bressner Individual 21. May 19 21. May 19 -1,000 $4.63 $-4,630
20. May 19 Sell Glen Bressner Individual 16. May 19 17. May 19 -24,000 $4.66 $-111,393
X
Management checks
We assess Innovative Solutions and Support's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Innovative Solutions and Support has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Innovative Solutions and Support, Inc.'s (NASDAQ:ISSC) 1.2% ROE Worse Than Average?

Innovative Solutions and Support has a ROE of 1.2%, based on the last twelve months. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Innovative Solutions and Support: 1.2% = US$439k ÷ US$35m (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Innovative Solutions and Support's Debt And Its 1.2% ROE In Summary Return on equity is one way we can compare the business quality of different companies.

Simply Wall St -

Shareholders Should Look Hard At Innovative Solutions and Support, Inc.’s (NASDAQ:ISSC) 0.6% Return On Capital

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Innovative Solutions and Support: 0.006 = US$211k ÷ (US$38m - US$2.4m) (Based on the trailing twelve months to June 2019.) So, Innovative Solutions and Support has an ROCE of 0.6%. … Do Innovative Solutions and Support's Current Liabilities Skew Its ROCE? … Innovative Solutions and Support has very few current liabilities, which have a minimal effect on its already low ROCE.

Simply Wall St -

If You Had Bought Innovative Solutions and Support (NASDAQ:ISSC) Stock Three Years Ago, You Could Pocket A 64% Gain Today

See our latest analysis for Innovative Solutions and Support Given that Innovative Solutions and Support didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … In the last 3 years Innovative Solutions and Support saw its revenue shrink by 23% per year. … A Different Perspective It's good to see that Innovative Solutions and Support has rewarded shareholders with a total shareholder return of 57% in the last twelve months.

Simply Wall St -

Does Innovative Solutions and Support, Inc.'s (NASDAQ:ISSC) CEO Salary Reflect Performance?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … Hedrick's Compensation Compare With Similar Sized Companies? … So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies.

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Did Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Insiders Sell Shares?

So we'll take a look at whether insiders have been buying or selling shares in Innovative Solutions and Support, Inc. … View our latest analysis for Innovative Solutions and Support The Last 12 Months Of Insider Transactions At Innovative Solutions and Support The Vice-Chairman & Presiding Director, Glen Bressner, made the biggest insider sale in the last 12 months. … Insider Ownership of Innovative Solutions and Support Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders.

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What Kind Of Shareholder Owns Most Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Stock?

Every investor in Innovative Solutions and Support, Inc. … With a market capitalization of US$57m, Innovative Solutions and Support is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Innovative Solutions and Support

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Our Take On Innovative Solutions and Support, Inc.'s (NASDAQ:ISSC) CEO Salary

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for Innovative Solutions and Support. … Hedrick's Compensation Compare With Similar Sized Companies?

Simply Wall St -

How Much Of Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Do Insiders Own?

Every investor in Innovative Solutions and Support, Inc. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Innovative Solutions and Support is not a large company by global standards.

Simply Wall St -

Is Innovative Solutions and Support Inc's (NASDAQ:ISSC) CEO Being Overpaid?

At the time of writing our data says that Innovative Solutions and Support Inc has a market cap of US$36m, and is paying total annual CEO compensation of US$421k. … We examined a group of similar sized companies, with market capitalizations of below US$200m. … Hedrick receives more in total compensation than the median of a group of companies in the same market, and of similar size to Innovative Solutions and Support Inc

Simply Wall St -

What You Must Know About Innovative Solutions and Support Inc's (NASDAQ:ISSC) Financial Strength

Innovative Solutions and Support Inc (NASDAQ:ISSC), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … However, the trade-off is ISSC will have to follow strict debt obligations which will reduce its financial flexibility. … Does ISSC's growth rate justify its decision for financial flexibility over lower cost of capital.

Simply Wall St -

Company Info

Description

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and services flight guidance, autothrottle, and cockpit display system in the United States and internationally. It offers flat panel display systems that replicates the display of analog or digital displays on one screen and replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; and flight management systems that complement the flat panel display system upgrade for commercial air transport aircraft. The company also provides integrated standby units, which incorporate the measurement and display of attitude, altitude, airspeed, and navigation data into a single standby/backup navigation instrument for military, commercial air transport, and corporate/general aviation applications. In addition, it offers digital air data computers that calculate various air data parameters, such as altitude, airspeed, vertical speed, angle of attack, and other information; integrated air data computers and display units, which calculate and convey air data information; altitude displays that convey aircraft altitude measurements; airspeed displays that convey various airspeed measurements; and altitude alerters. Further, the company offers engine and fuel displays that convey information related to fuel and oil levels, and engine activity, including oil and hydraulic pressure and temperature; integrated global navigation systems; ThrustSense, a full regime autothrottle; and utilities management systems. It serves commercial air transport carriers and corporate/general aviation companies, Department of Defense and its commercial contractors, aircraft operators, aircraft modification centers, government agencies, foreign militaries, and original equipment manufacturers. The company was founded in 1988 and is based in Exton, Pennsylvania.

Details
Name: Innovative Solutions and Support, Inc.
ISSC
Exchange: NasdaqGS
Founded: 1988
$51,455,738
16,982,092
Website: http://innovative-ss.com
Address: Innovative Solutions and Support, Inc.
720 Pennsylvania Drive,
Exton,
Pennsylvania, 19341,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ISSC Common Stock Nasdaq Global Select US USD 04. Aug 2000
Number of employees
Current staff
Staff numbers
71
Innovative Solutions and Support employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 01:08
End of day share price update: 2020/03/30 00:00
Last earnings filing: 2020/02/07
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.