Want to see IA full AI Analyst Report?
Top Page
Innovative Solutions And Support
(NASDAQ:IA)
Select Model
Select Model
Rating:79Outperform
Price Target:
$25.00
▲(16.50% Upside)
Action:Reiterated
Date:08/17/26
ISSC scores well primarily on strong financial performance (high margins, scaled revenue base, and a much more conservative TTM leverage profile), supported by a positive earnings call with upbeat guidance and improved profitability/cash generation. The score is tempered by somewhat stretched technical conditions (overbought signals) and a valuation that appears reasonable but not clearly discounted, with no dividend yield data to provide additional support.
Positive Factors
Organic Revenue Growth and Backlog
Strong organic expansion alongside a sizable backlog indicates growing demand beyond acquired or transitioning programs. This improves medium-term revenue visibility and supports continued scale as new aerospace and defense contracts move into production.
Negative Factors
Higher Net Debt Following Acquisitions
Acquisition-led leverage raises fixed financial obligations and makes future cash generation more important. Although liquidity includes credit availability, higher net debt could constrain flexibility if integration costs rise or aerospace program receipts are delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic Revenue Growth and Backlog
Strong organic expansion alongside a sizable backlog indicates growing demand beyond acquired or transitioning programs. This improves medium-term revenue visibility and supports continued scale as new aerospace and defense contracts move into production.
Read all positive factors
Innovative Solutions And Support Key Performance Indicators (KPIs)
Any
Backlog
Measures the value of unfulfilled orders or contracted work waiting to be delivered, giving a view of near-term revenue visibility and demand strength. A healthy backlog can signal steady future cash flows, while an unusually large or growing backlog may indicate delivery bottlenecks, supply constraints, or cancellation risk that could delay revenue and pressure margins.
Measures the value of unfulfilled orders or contracted work waiting to be delivered, giving a view of near-term revenue visibility and demand strength. A healthy backlog can signal steady future cash flows, while an unusually large or growing backlog may indicate delivery bottlenecks, supply constraints, or cancellation risk that could delay revenue and pressure margins.
Data provided by:
The Fly
The FlyInnovative Solutions And Support (IA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$378.93M
Dividend YieldN/A
Average Volume (3M)373.98K
Price to Earnings (P/E)19.3
Beta (1Y)1.48
Revenue Growth20.30%
EPS Growth61.44%
CountryUS
Employees147
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.07
Shares Outstanding17,899,174
10 Day Avg. Volume280,737
30 Day Avg. Volume373,980
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.40
Price to Sales (P/S)2.60
P/FCF Ratio32.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$37.00Price Target Upside72.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.01
Revenue Forecast (FY)$96.60M
Innovative Solutions And Support Business Overview & Revenue Model
Company Description
Innovative Solutions & Support, Inc. engages in the manufacture of flight navigation systems. It designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display...
Innovative Solutions And Support Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 93.15M | 84.30M | 47.20M | 34.81M | 27.74M | 23.04M |
| Gross Profit | 51.18M | 40.51M | 25.91M | 21.31M | 16.67M | 12.78M |
| EBITDA | 31.60M | 25.41M | 11.89M | 8.73M | 7.71M | 4.41M |
| Net Income | 19.09M | 15.63M | 7.00M | 6.03M | 5.52M | 5.06M |
Balance Sheet | ||||||
| Total Assets | 147.96M | 103.36M | 82.38M | 62.96M | 34.71M | 27.09M |
| Cash, Cash Equivalents and Short-Term Investments | 10.69M | 2.69M | 538.98K | 3.10M | 17.25M | 8.27M |
| Total Debt | 54.31M | 24.14M | 28.03M | 19.51M | 28.68K | 42.98K |
| Total Liabilities | 70.76M | 38.76M | 35.74M | 24.32M | 3.96M | 2.50M |
| Stockholders Equity | 77.20M | 64.60M | 46.64M | 38.64M | 30.75M | 24.59M |
Cash Flow | ||||||
| Free Cash Flow | 14.29M | 6.79M | 5.14M | 1.80M | 5.93M | 4.25M |
| Operating Cash Flow | 18.51M | 13.30M | 5.80M | 2.10M | 6.09M | 4.59M |
| Investing Cash Flow | -37.22M | -6.51M | -16.88M | -36.16M | 2.59M | -340.68K |
| Financing Cash Flow | 28.80M | -4.64M | 8.53M | 19.91M | 301.15K | -19.77M |
Innovative Solutions And Support Technical Analysis
Positive
21.46
Price Trends
19.42
Positive
19.46
Positive
19.33
Positive
Market Momentum
0.54
Positive
49.68
Neutral
14.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IA, the sentiment is Positive. The current price of 21.46 is above the 20-day moving average (MA) of 21.26, above the 50-day MA of 19.42, and above the 200-day MA of 19.33, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IA.
Innovative Solutions And Support Risk Analysis
Innovative Solutions And Support disclosed 37 risk factors in its most recent earnings report. Innovative Solutions And Support reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Innovative Solutions And Support Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.09B | 25.48 | 10.83% | 0.80% | 20.88% | 2.58% | |
79 Outperform | $378.93M | 19.30 | 27.02% | ― | 20.30% | 61.44% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $2.78B | -97.40 | -3.72% | ― | 8.57% | -162.23% | |
59 Neutral | $5.44B | -175.40 | -2.01% | ― | 7.85% | 22.99% | |
50 Neutral | $832.88M | -3.73 | -221.18% | ― | ― | 1.65% | |
42 Neutral | $127.06M | 4.21 | -171.87% | ― | ― | ― |
* Industrials Sector Average
IA
Innovative Solutions And Support
20.65
7.70
59.46%
DCO
Ducommun
176.30
85.08
93.27%
MRCY
Mercury Systems
88.54
20.99
31.07%
NPK
National Presto
152.62
48.56
46.67%
EVTL
Vertical Aerospace
0.68
-4.18
-85.95%
EVEX
Eve Holding
2.31
-1.62
-41.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.