Innovative Aerosystems

ISSC

Aerospace & Defense · Industrials

Exchange

NASDAQ

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Exceptional

Cash Flow

Strong

Stability

Strong

Valuation

Good

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Winston Score History

The full picture

Innovative Solutions and Support (ISSC) makes cockpit display systems and avionics for aircraft. The company replaces old analog gauges with modern flat-panel digital screens that show pilots flight data more clearly. Its customers include commercial airlines, regional carriers, military operators, and business jet owners — all part of the broader aerospace and defense industry.

ISSC earns revenue by selling its display systems and avionics hardware, and also generates income from software upgrades and aftermarket support contracts. The company operates primarily in the United States and focuses on the retrofit market — upgrading existing aircraft rather than only supplying new ones — which gives it a steady stream of demand as aging fleets need modernization. Its proprietary software and FAA-certified hardware create switching costs that are hard for competitors to overcome. The key growth driver is the large global installed base of older aircraft that still need cockpit upgrades, though any slowdown in airline spending or delays in regulatory approvals could weigh on future results.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+10.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+78.6% YoY

YoY Growth Rate

Strong earnings growth

Insider Activity

8.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$11M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Innovative Aerosystems is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

51.7%

Healthy — 51.7% gross margin

Profit after running costs

Operating Margin

22.6%

Excellent — 22.6% operating margin

Return on the money invested

ROCE

19.4%

Strong — 19.4% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+20.3%

Fast-growing sales (+20.3% YoY)

Profit growth

EPS YoY

+59.2%

Earnings growing fast (+59.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

97%

Turns 97% of profit into real cash

Spare cash per sale

FCF Margin

15.3%

Converts sales into free cash efficiently (15.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.70

Moderate — manageable debt (0.70)

Covers its interest

Interest Cover

10.10x

Comfortably covers interest (10.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

23.2x

no trend

Growth-priced — P/E 23.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+3.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (23.2 → 19.9)

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Dividends

Not applicable for this business.

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