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Innovative Aerosystems, Inc (ISSC) Fair Value & Analysis

Industrials · US · Market cap $308M

IA Innovative Aerosystems, Inc logo Innovative Aerosystems, Inc ISSC · US
Price$20.17
Fair Value$15.69
Upside-22.2%
Quality64/100
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Mixed Growth
Solidly profitable · 18.8% net margin
Low debt · generates free cash flow
Ranks above peers (9/14)
Wide moat 83/100
Evidence: High Range $7.00 – $26.43 Share as image

Fair value as of: Jul 19, 2026

From 24 valuation models · updated 22 days ago

Share price +10.2% over the past month.

A solid business, but screening 22% overvalued on our models.

What matters now

  • The model range is unusually wide ($7.00 to $26.43). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$30.56 $4.99 Fair Value $15.69 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range $4.99 – $30.56 · fair‑value band $7.00 – $26.43 · the $20.17 price screens above the $15.69 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Innovative Aerosystems, Inc (ISSC) currently trades at $20.17, while our model-based Fair Value estimate is $15.69, implying the stock looks roughly 22.2% overvalued today. The Quality Score stands at 64/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Innovative Aerosystems, Inc generated revenue of $90.6M at a net margin of 18.8%. Revenue grew 2.0% year over year. It earns a return on equity of 27.1%. Net debt stands at $21.4M. Fundamentals as of Jul 19, 2026

Our scenario range runs from $7.00 (bear case) to $26.43 (bull case); at $20.17, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 35% below its 52-week high and 148% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -59% fair-value upside, at -22%, ISSC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $3.18 $6.52 $11.12 80
Residual Income $5.00 $6.73 $28.74 76
Rev-Margin DCF $4.33 $9.08 $15.68 74
All 24 models by family
DCF Models
FCF DCF $3.32 $6.48 $13.25 38
Owner Earnings $7.23 $14.24 $26.01 31
5Y Revenue Exit $4.33 $9.31 $16.43 39
5Y EBITDA Exit $8.33 $18.12 $31.20 41
5Y P/E Exit $8.80 $19.16 $31.83 38
10Y Revenue Exit $3.70 $8.14 $15.63 36
10Y EBITDA Exit $6.38 $14.26 $27.67 37
10Y P/E Exit $6.67 $14.99 $28.19 35
Earnings-Based
Graham-Dodd $5.94 $34.06 $47.36 54
Lynch FV $9.59 $13.70 $17.81 50
PEG = 1.0 $9.59 $13.70 $17.81 46
EPV $5.98 $6.94 $7.74 59
Multiples
P/E Multiple $13.76 $18.34 $22.93 63
P/S Multiple $7.07 $9.42 $11.78 58
P/B Multiple $11.14 $14.85 $18.56 55
EV/EBIT $13.24 $18.01 $22.78 53
EV/EBITDA $11.91 $16.23 $20.56 54
EV/Revenue $4.87 $7.42 $9.96 43
Asset-Based
NCAV (Graham) $1.81 $2.42 $3.61 50
Growth DCF
Growth DCF $3.18 $6.52 $11.12 80
Rev-Margin DCF $4.33 $9.08 $15.68 74
Economic Profit
Residual Income $5.00 $6.73 $28.74 76
ROIC Compounder $6.94 $9.58 $13.03 72
Growth Earnings
Growth-Adj P/E $14.23 $20.33 $26.43 68

Widest divergence: Growth Earnings ($20.33) versus Asset-Based ($2.42). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $90.6M
Revenue growth (YoY) +2.0%
Net margin 18.8%
Return on equity 27.1%
Free cash flow $6.8M FY2025
P/E ratio 18.1
More key figures
Operating margin 25.7%
EPS (TTM) $0.9500
EPS growth (YoY) -36.7%
Net debt $21.4M FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 62 · Market factors (momentum, volatility) 51

Profitability 75
Margins and returns on capital today
Quality Growth 80
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 77
Balance sheet, leverage, solvency risk
Investment 23
Disciplined investing over empire-building
Low Volatility 46
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 60
Distance to the 52-week high (market factor)
Net Issuance 66
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Innovative Aerosystems, Inc., engages in the engineering, manufacturing, and supply of advanced avionic solutions. The company provides autothrottles; LPV Navigators; standby displays; COM/NAV/surveillance radio management systems; air data solutions; inertial reference systems; utilities management systems; and air data, attitude and heading reference …

Full company description

Innovative Aerosystems, Inc., engages in the engineering, manufacturing, and supply of advanced avionic solutions. The company provides autothrottles; LPV Navigators; standby displays; COM/NAV/surveillance radio management systems; air data solutions; inertial reference systems; utilities management systems; and air data, attitude and heading reference systems. It also offers flat panel display systems, inertial reference systems, integrated global navigation systems, global positioning systems, c-130 engine instrument display systems, liberty flight deck, and communications/navigation products. The company serves business aircrafts, commercial airlines, military, virtual cp-pilots, and turbo prop. The company was formerly known as Innovative Solutions and Support, Inc. and changed its name to Innovative Aerosystems, Inc. in October 2025. Innovative Aerosystems, Inc. was incorporated in 1988 and is based in Exton, Pennsylvania.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Innovative Aerosystems, Inc reported revenue of $84.3M in FY2025 versus $23.0M in FY2021, a compound +38.3%/yr. Reported net income was $15.6M in FY2025, compounding +32.5%/yr from FY2021.

Growth Quality 91/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$84.3M
Latest YoY
+78.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+44.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+31.3%
Avg. growth/yr (26Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.2%
Revenue +38.3%/yr
FY21 $23.0M
FY22 $27.7M
FY23 $34.8M
FY24 $47.2M
FY25 $84.3M
Net income +32.5%/yr
FY21 $5.1M
FY22 $5.5M
FY23 $6.0M
FY24 $7.0M
FY25 $15.6M

ISSC screens 22% overvalued. Compare with General Electric Company →

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Cite: Fair Value Calculator (2026). "Innovative Aerosystems, Inc Fair Value". https://www.fairvalue-calculator.com/stock/ISSC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Aerospace & Defense · 226 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 64 · Top 25%
Fair Value upside −22% · Top 25%
Return on equity (TTM) 27% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 26% · Top 25%
Revenue growth 2% · Below median
Debt / equity 0.34× · Higher than median

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 18.1× · Cheaper than 75% of peers
P/B 4.77× · Pricier than median
P/S (TTM) 3.40× · Pricier than median
P/FCF 45.3× · Pricier than 75% of peers
EV/EBITDA 12.0× · Cheaper than median
PEG 0.83× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 4 · sector 0
FUTURE 10 · sector 46
PAST 100 · sector 38
HEALTH 83 · sector 94
DIVIDEND 0 · sector 15

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Weapons Defense

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $381.22 $116.71 -69%
RTX Corporation RTX $195.93 $88.37 -55%
Airbus SE 1AIR €213.25 €86.20 -60%
The Boeing Company BA $217.11 $48.20 -78%
China CSSC Holdings 600150 ¥34.31 ¥21.90 -36%
HD Hyundai Heavy Industries Co 329180 466,000 KRW 272,966 KRW -41%
Hanwha Aerospace Co 012450 967,000 KRW 573,468 KRW -41%
ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi ASELS 337.50 TRY 130.70 TRY -61%
Saab AB SAABB kr 520.40 kr 212.84 -59%
Kongsberg Gruppen ASA KOG kr 277.50 kr 106.93 -61%

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Frequently asked questions

Is Innovative Aerosystems, Inc (ISSC) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of $15.69 versus a price of $20.17, about −22% (overvalued).
What is the fair value of ISSC?
Our model-based fair value for Innovative Aerosystems, Inc is $15.69 (as of Jul 19, 2026), built from audited fundamentals. The current price is $20.17.
What is the quality score of ISSC?
Innovative Aerosystems, Inc has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Innovative Aerosystems, Inc (ISSC)?
Innovative Aerosystems, Inc reported trailing-twelve-month revenue of about $90.6M (latest available figure, as of Jul 19, 2026).
What is the net profit margin of ISSC?
The net profit margin of Innovative Aerosystems, Inc is about 18.8%, meaning it keeps roughly 18.8% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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