BN · rank #19 · 2026-07-27
ISSC
NASDAQ · $342M (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.14 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +11.3% |
| Forward net margin Consensus forward net margin. | +18.4% |
| Net margin TTM Trailing twelve month net margin. | +18.8% |
| Margin expansion Forward minus trailing net margin (percentage points). | -0.4% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.83 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 4.16× |
| Analyst upside Spread between the consensus 12m target and the current price. | +47.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | +37% |
| Market cap (USD) | $342M |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Innovative Aerosystems (ISSC) designs and manufactures avionics, flight-management, and cockpit-display systems for commercial, business, and military aviation OEM and aftermarket markets, recently acquiring Honeywell's legacy avionics IP and power-generator lines for Boeing 767/KC-46/F-15 platforms.
Rationale
The Honeywell asset acquisition creates a genuine sole-source sustainment bottleneck—exclusive IP, tooling, and OEM/aftermarket contracts for legacy fleets that cannot easily re-source—directly validating the bottleneck_solver thesis with $87M backlog providing revenue visibility.
Material risks
- 1The Honeywell deal adds debt (debt-to-FCF of 4.2x) to a $343M market-cap company; integration execution risk on legacy product lines could compress already slightly declining margins and strain free cash flow if sustainment revenues ramp slower than expected.
- 2Concentration on a small number of platforms (KC-46, King Air, PC-24) means a program delay, budget cut, or OEM production rate reduction—particularly on the KC-46 given ongoing Boeing program turbulence—could disproportionately hit revenue.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.