ISSC
🔍 This small-cap aerospace and defense company appeared in a screen focused on growth at a reasonable price, highlighting potential undervaluation.
📈 ISSC shows strong historical growth metrics, including significant net income compound annual growth rate (CAGR) over the last 10 years and recent revenue acceleration.
⚠️ Despite positive growth signals, the company carries net debt and showed relatively low free cash flow in the last year, requiring further investigation before investing.
@bernardodegarcia:
“What does this tell us? For example, ISSC, let’s look for ISSC, and MG. What does this tell us? That they are probably not followed much, they probably have very little liquidity, ISSC, and on the other hand, we had MG. Okay, there’s very little liquidity. Let’s check the liquidity we’re having. Well, this company right now, 200,000 shares, has about $2 million approximately per day. It’s not extremely low, so it has quite a bit of liquidity. And I suppose this one still has a bit more… well no, this one has about… yes, more or less 60, 50 times 50, that’s $300,000 moving per day. If a large fund wants to enter this company, it won’t be able to. Okay, it has a very good insider position, 17%, and look, well, we just found something, eh, that is a provider of advanced avionic solutions. Honestly, I’m no expert, but it could be quite interesting. As we are seeing, the forward PER is below 20, although we normally look for it below 15. Sometimes Wibull and Cofing don’t agree on valuations. The PER is below 20, yes, also below 25. We have a very good insider position, not many analysts covering it, it’s not an extraordinarily expensive company, and almost the most interesting thing, okay? ISSC, there we have it. ISSC, very small, $116 million. It unfortunately has net debt, meaning it has almost 20% net debt. This would be something we’d have to review, I’m not entirely convinced. It has a free cash flow of $1 million over the last year, which is like 1%, not extraordinary either. EBITA is cheap, yes. Net income over the last 10 years has indeed risen quite a bit. The ROIC is also quite good, and revenues, as you see, excuse me, over the last two years have risen 56% and 21%.”
Watch the exact part of the video where @bernardodegarcia talks about Innovative Solutions and Support, Inc. here:
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Read more articles analyzing Innovative Solutions and Support, Inc. (ISSC) at the provided link. ISSC stock.
