Innovative Solutions and Support, Inc. (ISSC)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Innovative Solutions and Support, Inc. (ISSC) trades at $18.85 with AI Score 87/100 (Grade A+). Innovative Aerosystems, Inc. specializes in advanced avionics solutions for commercial, military, and general aviation. Market cap: $337.28M, Sector: Industrials.
Price live · AI analysis from May 9, 2026ISSC stock analysis for 2026: Analysts have set a consensus price target of $25.00 for Innovative Solutions and Support, Inc., suggesting 32.6% upside from the current price of $18.85. The AI MoonshotScore is 87/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
ISSC: 2/4 perspectives are bullish. Dominant signal: Moon AI bullish.
How is this calculated? →Innovative Solutions and Support, Inc. (ISSC) Industrial Operations Profile
Innovative Aerosystems, Inc. delivers advanced avionics solutions, including autothrottles and display systems, serving commercial, military, and general aviation sectors. With a focus on engineering and manufacturing, the company supports diverse aircraft platforms and maintains a strong profit margin within the aerospace industry.
What Is the Investment Thesis for ISSC?
Innovative Aerosystems, Inc. presents a compelling investment case based on its specialized market position and strong financial performance. With a P/E ratio of 17.3 and a profit margin of 21.0%, the company demonstrates efficient operations and profitability. Key value drivers include the increasing demand for advanced avionics in both new aircraft and retrofit programs. Growth catalysts include expanding into new markets and securing additional contracts with military and commercial clients. Potential risks include economic downturns affecting the aviation industry and competition from larger aerospace companies. The company's beta of 0.70 suggests lower volatility compared to the broader market.
Based on FMP financials and quantitative analysis
ISSC Key Highlights
- Market Cap of $337.28M indicates a solid valuation within the aerospace and defense sector.
- P/E Ratio of 17.3 reflects reasonable valuation relative to earnings.
- Profit Margin of 21.0% demonstrates strong profitability and efficient operations.
- Gross Margin of 50.8% showcases the company's ability to maintain healthy pricing and cost control.
- Beta of 0.70 suggests lower volatility compared to the broader market, indicating a more stable investment.
Who Are ISSC's Competitors?
ISSC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| HON Honeywell International Inc. | $231.18 | +0.57% | $73.24B | 53 |
| LMT Lockheed Martin Corporation | $538.00 | -1.45% | $124.04B | 64 |
| BA The Boeing Company | $232.69 | +2.74% | $183.43B | 40 |
| FLY Firefly Aerospace Inc. | $27.88 | -3.53% | $4.58B | 68 |
| DUKR DUKE Robotics Corp. | $5.23 | +8.73% | $11.53M | 67 |
| PL Planet Labs PBC | $31.04 | -1.10% | $10.33B | 66 |
| MDALF MDA Ltd. | $33.66 | +5.58% | $4.26B | 65 |
| SKYH Sky Harbour Group Corporation | $10.27 | +3.01% | $785.94M | 63 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are ISSC's Key Strengths?
- Specialized expertise in avionics solutions.
- Strong relationships with key customers.
- High profit margin of 21.0%.
- Proven track record of innovation.
What Are ISSC's Weaknesses?
- Relatively small size compared to major aerospace players.
- Dependence on the cyclical aviation industry.
- Limited geographic diversification.
- Potential vulnerability to supply chain disruptions.
What Could Drive ISSC Stock Higher?
- Increasing demand for advanced avionics in commercial and military aircraft.
- Potential for new contracts with defense agencies for avionics systems.
- Expansion into emerging markets with cost-effective avionics solutions.
- Development and launch of new avionics technologies, such as enhanced flight vision systems.
- Retrofit and upgrade programs for aging aircraft fleets.
What Are the Key Risks for ISSC?
- Economic downturns affecting the aviation industry and reducing demand for avionics.
- Competition from larger aerospace companies with greater resources.
- Technological obsolescence requiring continuous investment in research and development.
- Changes in aviation regulations impacting product compliance and development costs.
- Supply chain disruptions affecting the availability of critical components.
What Are the Growth Opportunities for ISSC?
- Expansion into Emerging Markets: The increasing demand for air travel in emerging economies presents a significant growth opportunity. By targeting these markets with cost-effective avionics solutions, Innovative Aerosystems can expand its customer base and increase revenue. The commercial aviation sector in Asia-Pacific, for example, is projected to grow substantially over the next decade, creating a market for new aircraft and avionics upgrades. Timeline: Ongoing.
- Increased Military Contracts: Government defense spending on military aircraft and avionics upgrades provides a stable revenue stream. Securing additional contracts with defense agencies for avionics systems and support services can drive significant growth. The global military avionics market is expected to reach billions of dollars annually. Timeline: Ongoing.
- Development of Advanced Avionics Technologies: Investing in research and development to create innovative avionics technologies, such as enhanced flight vision systems and autonomous flight controls, can provide a competitive edge. These advanced technologies can attract new customers and increase market share. The market for advanced avionics is driven by the need for improved safety and efficiency. Timeline: Ongoing.
- Strategic Partnerships and Acquisitions: Forming strategic partnerships with other aerospace companies or acquiring complementary businesses can expand Innovative Aerosystems' product portfolio and market reach. These partnerships can provide access to new technologies, customers, and distribution channels. The aerospace industry is characterized by collaborations and acquisitions to enhance capabilities. Timeline: Ongoing.
- Retrofit and Upgrade Programs: The aging aircraft fleet presents a significant opportunity for avionics retrofit and upgrade programs. By offering cost-effective solutions to modernize existing aircraft, Innovative Aerosystems can tap into a large and growing market. The demand for avionics upgrades is driven by the need to comply with new regulations and improve operational efficiency. Timeline: Ongoing.
What Opportunities Does ISSC Have?
- Expansion into emerging markets.
- Increased military contracts.
- Development of advanced avionics technologies.
- Strategic partnerships and acquisitions.
What Threats Does ISSC Face?
- Economic downturns affecting the aviation industry.
- Competition from larger aerospace companies.
- Technological obsolescence.
- Changes in aviation regulations.
What Are ISSC's Competitive Advantages?
- Proprietary avionics technology.
- Long-standing relationships with key customers.
- Strong reputation for quality and reliability.
- Compliance with stringent aviation regulations.
- Specialized expertise in avionics systems.
What Does ISSC Do?
Innovative Aerosystems, Inc., formerly known as Innovative Solutions and Support, Inc., was founded in 1988 and is headquartered in Exton, Pennsylvania. The company engineers, manufactures, and supplies advanced avionic solutions for various aviation sectors, including business aircraft, commercial airlines, military, virtual co-pilots, and turbo props. Its product portfolio includes autothrottles, LPV Navigators, standby displays, COM/NAV/surveillance radio management systems, air data solutions, and inertial reference systems. The company also offers flat panel display systems, integrated global navigation systems, global positioning systems, C-130 engine instrument display systems, and the Liberty Flight Deck. Innovative Aerosystems has established itself as a provider of critical avionics components, serving both new aircraft installations and retrofit markets. The company changed its name in October 2025 to reflect its evolution and focus on innovative aerospace technologies.
What Products and Services Does ISSC Offer?
- Designs and manufactures flight guidance systems.
- Produces autothrottle systems for various aircraft.
- Develops and supplies cockpit display systems.
- Offers LPV (Localizer Performance with Vertical guidance) Navigators.
- Provides air data solutions for accurate flight information.
- Manufactures inertial reference systems for navigation.
- Supplies COM/NAV/surveillance radio management systems.
- Offers utilities management systems for aircraft.
How Does ISSC Make Money?
- Engineering and manufacturing advanced avionic solutions.
- Selling products directly to aircraft manufacturers and operators.
- Providing aftermarket support and maintenance services.
- Securing contracts with commercial airlines and military organizations.
What Industry Does ISSC Operate In?
Innovative Aerosystems operates within the aerospace and defense industry, which is characterized by technological advancements and stringent regulatory requirements. The market is driven by increasing air travel, defense spending, and the need for modernized avionics systems. The industry is competitive, with larger players like Boeing and Lockheed Martin, as well as specialized avionics suppliers. Innovative Aerosystems carves out its niche by focusing on specific avionics solutions and serving diverse aviation segments. The global aerospace and defense market is projected to reach trillions of dollars in the coming years, offering substantial growth opportunities.
Who Are ISSC's Key Customers?
- Business aircraft manufacturers.
- Commercial airlines.
- Military organizations.
- General aviation operators.
- Turbo prop aircraft operators.
Company Profile
Innovative Solutions and Support, Inc. operates in the Aerospace & Defense industry within the Industrials sector. It is headquartered in Exton, US. The company is led by CEO Shahram Askarpour. ISSC has traded publicly since 2000.
How Innovative Solutions and Support, Inc. Is Valued
Innovative Solutions and Support, Inc. carries a market capitalization of $337.28M, placing it in the small-cap category. Relative to its peer group, ISSC's quantitative score of 87/100 is above the peer average of 58/100.
ROE 26%Key Financial Metrics
Return on equity for Innovative Solutions and Support, Inc. stands at 26.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 12.3%, showing how much profit it generates from its asset base. ISSC trades at a trailing price-to-earnings ratio of 17.30, below the Industrials sector average of ~30x. Its free cash flow yield is 4.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.23 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.4%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 6/9Financial Health
Innovative Solutions and Support, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 4.91 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project Innovative Solutions and Support, Inc. revenue of about $93.7M for fiscal 2026, with EPS near $0.92.
ISSC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- ISSC has seen some insider buying recently, which often signals confidence from those who know the company best. It's like the CEO loading up on shares before Tesla's big 2020 run.
- The community seems to be buzzing about potential new contracts for ISSC. This positive chatter could indicate upcoming growth opportunities, similar to how rumors fueled Apple's stock before product launches.
- There's a growing perception that ISSC's solutions are becoming increasingly vital in the current aviation landscape. This rising demand could translate to sustained revenue growth, much like how cloud computing boosted Amazon.
- The overall market sentiment towards aerospace suppliers is improving, potentially lifting ISSC along with it. This 'rising tide lifts all boats' scenario could benefit ISSC, similar to the tech sector boom of the late 90s.
Bear Case
- Despite insider buying, some worry it's just window dressing. It's like Lehman Brothers executives buying stock right before the 2008 crash - doesn't always mean things are rosy.
- Community sentiment, while generally positive, shows some concern about ISSC's ability to scale production to meet potential demand. This bottleneck could hinder growth, similar to supply chain issues plaguing automakers.
- There's chatter about increased competition in ISSC's niche market. This could squeeze margins and impact profitability, much like the smartphone market battles between Samsung and Apple.
- Some analysts are questioning the long-term sustainability of ISSC's growth trajectory. This skepticism could dampen investor enthusiasm, similar to concerns surrounding meme stocks after their initial surge.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · January 2026
ISSC Latest News
-
Innovative Aerosystems: The Market Is Underestimating The New M&A Strategy (Rating Upgrade)
seekingalpha.com · Jun 3, 2026
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Innovative Aerosystems: Looks Fairly Priced With Lower Intermediate Growth Ahead
seekingalpha.com · May 26, 2026
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Innovative Aerosystems to Participate in Upcoming Investor Conferences
businesswire.com · May 19, 2026
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A Look At Innovative Aerosystems (ISSC) Valuation After Q2 Results And Acquisition Pipeline Update
Simply Wall St. · May 15, 2026
ISSC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ISSC.
Price Targets
Consensus target: $25.00
ISSC MoonshotScore
What does this score mean?
The MoonshotScore rates ISSC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Innovative Aerosystems: The Market Is Underestimating The New M&A Strategy (Rating Upgrade)
Innovative Aerosystems: Looks Fairly Priced With Lower Intermediate Growth Ahead
Innovative Aerosystems to Participate in Upcoming Investor Conferences
A Look At Innovative Aerosystems (ISSC) Valuation After Q2 Results And Acquisition Pipeline Update
Latest Innovative Solutions and Support, Inc. Analysis
Leadership: Shahram Askarpour
Chief Executive Officer
Shahram Askarpour serves as the Chief Executive Officer of Innovative Aerosystems, Inc. His background includes extensive experience in the aerospace and defense industries. He has held various leadership positions in engineering, program management, and business development. Askarpour's expertise spans avionics systems, flight controls, and navigation technologies. He holds advanced degrees in engineering and business administration.
Track Record: Under Shahram Askarpour's leadership, Innovative Aerosystems, Inc. has focused on expanding its product portfolio and securing key contracts with commercial and military clients. He has overseen the company's transition to advanced avionics technologies and has driven improvements in operational efficiency. Askarpour has also emphasized building strong relationships with customers and partners.
ISSC Industrials Stock FAQ
What does Innovative Aerosystems, Inc. do?
Innovative Aerosystems, Inc. specializes in the design, manufacture, and supply of advanced avionic solutions for the aerospace industry. The company's product portfolio includes autothrottles, display systems, navigation systems, and air data solutions. These products are used in commercial airlines, business aircraft, military aircraft, and general aviation. The company serves both new aircraft installations and retrofit programs, providing critical avionics components to enhance safety and efficiency.
What are the main risks for ISSC?
The main risks for Innovative Aerosystems, Inc. include economic downturns affecting the aviation industry, competition from larger aerospace companies, and technological obsolescence. Economic downturns can reduce demand for new aircraft and avionics upgrades, impacting revenue. Competition from larger companies with greater resources can put pressure on pricing and market share. Technological obsolescence requires continuous investment in research and development to maintain a competitive edge. Changes in aviation regulations can also increase compliance and development costs.
How does Innovative Aerosystems, Inc. compare to competitors in its industry?
Innovative Aerosystems, Inc. differentiates itself through its specialized focus on avionics solutions and its ability to serve diverse aviation segments. Unlike larger, diversified aerospace companies like Honeywell and Lockheed Martin, Innovative Aerosystems focuses on specific avionics components and systems. This specialization allows the company to offer tailored solutions and maintain a strong reputation for quality and reliability. The company's strong profit margin of 21.0% also demonstrates efficient operations compared to some competitors.
What are the key financial metrics investors watch for ISSC?
Investors closely monitor several key financial metrics for Innovative Aerosystems, Inc. Revenue growth is a critical indicator of the company's ability to expand its market share and secure new contracts. The profit margin of 21.0% and gross margin of 50.8% reflect the company's profitability and cost control. The P/E ratio of 17.3 provides insights into the company's valuation relative to its earnings. Additionally, investors track the company's cash flow, debt levels, and return on equity to assess its financial health and stability.
What are the key factors to evaluate for ISSC?
Innovative Solutions and Support, Inc. (ISSC) holds an AI score of 87/100 (high). P/E: 17.3x vs the S&P 500's ~20-25x. Analysts target $25.00 (+33%). Not financial advice.
How frequently does ISSC data refresh on this page?
ISSC prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven ISSC's recent stock price performance?
Innovative Solutions and Support, Inc. (ISSC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Specialized expertise in avionics solutions. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider ISSC overvalued or undervalued right now?
Innovative Solutions and Support, Inc. (ISSC) trades at 17.3x earnings. Analysts target $25.00 (+33%) — upside seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on provided company data and may be subject to change.
- Financial metrics are as of the latest available data.