Innovative Solutions and Support Inc. Common Stock (ISSC)
FairStock Score: 80/100 — HIGH CONVICTION
Key Financials
| Current Price | $20.95 |
| Market Cap | $355M |
| P/E Ratio | 18.38 |
| ROE | 28.5% |
| Dividend Yield | —% |
| Sector | Industrials |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At $20.95 on 2026-08-24, Innovative Solutions and Support is a $355.2 million aerospace supplier with only 147 employees, selling avionics such as autothrottles, displays, navigation, air-data, and inertial systems. In fiscal Q2 2026 (the quarter labeled 2026-Q2 in the data), revenue was $26.7 million and net income was $4.5 million, a 16.79% net margin. That is a genuinely profitable niche. FairStock calculates ROE of 28.50% and ROCE of 13.81%, while the balance sheet shows debt-to-equity of 0.70 and an Altman Z-score of 4.05. Trailing free cash flow was $14.3 million, a 4.0% FCF yield. The data also show revenue growth of 36.56% and profit growth of 451.36%, which is exceptional but not a rate I would underwrite forever. I cannot verify a durable moat from these figures alone; high returns suggest some advantage, but the company is small and the Lynch category is 'none' because only zero years of filed results are available, where three are needed. Valuation is demanding: FairStock's P/E is 18.38, P/B is 4.86, and its Graham Number is $10.51, leaving a -99.33% margin of safety. PEG of 0.04 and EV/EBITDA of 12.74 also imply expectations. Piotroski 7/9 is respectable. Overall, this is a profitable, growing, financially sound small-cap, but the price already reflects much of the promise.
In plain English: Innovative Solutions and Support makes avionics systems for aircraft. In fiscal Q2 2026, the quarter labeled 2026-Q2 in the data, revenue was $26.7 million and profit was $4.5 million, so the business looks profitable and financially solid. The stock price looks expensive compared with the company's book value and earnings.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data as of 2026-08-24 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer