XVARY Composite Score
48
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
Start here if you're new
What it is
ISSC builds cockpit electronics that help pilots fly, navigate, and monitor engines in commercial, business, and military aircraft.
How it gets paid
Last year Solutions made $84M in revenue.
Why it's growing
Revenue grew 78.6% last year. The big number was 54.5% gross margin, because it says this growth is not being bought with discounts.
What just happened
ISSC posted $22M of quarterly revenue, up 37% vs. prior year, with EPS up 450%.
At a Glance
B balance sheet — gets the job done, barely
45/100 earnings predictability — expect surprises
22.4x trailing p/e — priced about right
19.1% return on capital — nothing to write home about
$0.88 fy2025 eps est
XVARY composite: 48/100 — below average
What They Do
ISSC builds cockpit electronics that help pilots fly, navigate, and monitor engines in commercial, business, and military aircraft.
ISSC wins by selling flight-critical gear into cockpits where failure is not an option. Once your aircraft is fitted and certified, switching vendors is painful and expensive, and that shows up in a 54.5% gross margin and 28.2% operating margin. Bigger rivals have scale. ISSC has focus.
How They Make Money
$84M
annual revenue · their business grew +78.6% last year
total revenue
$84M
+78.6%
The Products That Matter
Measures flight data
Air Data Systems
core avionics line
these systems sit inside a business that just produced $21.8M in quarterly revenue at a 54.5% gross margin. that margin is the clue that this is specialized hardware, not commodity electronics.
54.5% gross margin
Powers cockpit displays
Engine Display Systems
military program exposure
military avionics contributed $58.8M of the $84.0M mix shown here. products tied to platforms like the F-16 matter because one program can move the entire quarter.
70% of mix
Licensed military products
Honeywell Licensed Products
growth driver
management's recent growth leaned heavily on this line, with over 70% of recent growth tied to Honeywell military products and a few defense programs. that helps explain the upside and the risk in one sentence.
70%+ of recent growth
Key Numbers
28.2%
operating margin
Operating margin → profit after running the business → so what: ISSC keeps about $0.28 from each sales dollar before interest and taxes.
$84M
annual revenue
This is still a very small company, which is why one strong program can move results fast in either direction.
54.5%
gross margin
Gross margin → sales left after production costs → so what: the products have pricing power that looks more software-like than hardware-like.
19.1%
return on capital
Return on capital → profit earned on money invested → so what: management is turning each dollar tied up in the business into $0.19 of operating return.
Financial Health
B
Strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- long-term debt $22M (4% of capital)
B — functional but not a standout on the balance sheet.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
beat estimates
ISSC posted $22M of quarterly revenue, up 37% vs. prior year, with EPS up 450%.
The quarter kept the growth story alive. Revenue reached $22M, EPS hit $0.22, and gross margin stayed high at 54.5% as military and air transport demand helped mix.
$22M
revenue
$0.22
eps
54.5%
gross margin
the number that mattered
The big number was 54.5% gross margin, because it says this growth is not being bought with discounts.
source: company earnings report, 2026
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What Could Go Wrong
The #1 risk is program concentration in Honeywell-licensed military avionics.
High
Program concentration
Over 70% of recent growth came from Honeywell military products and a few defense programs. That is efficient when orders arrive and painful when timing slips.
A delay matters quickly when the latest quarter only produced $21.8M of revenue.
High
Lumpy earnings
Earnings predictability is 45/100. In plain English: you should expect uneven quarters, because this is a small supplier tied to program timing, not a recurring software business.
One weak quarter can hit both the income statement and the multiple at the same time.
Med
Premium multiple for a small company
The stock trades at 22.4x trailing earnings after a 19.9% post-earnings jump. That is a reasonable price for sustained execution and an awkward one for any stumble.
If growth cools, the market does not need to panic to rerate the shares lower.
Med
Volatility
Price stability is 15/100 and the stock traded between $5 and $31 in the last 52 weeks. That range tells you the market has not decided what this business is worth.
Even if the thesis is right, the path can still look ridiculous.
A business doing $21.8M in quarterly revenue can look amazing with 36.5% growth and 54.5% gross margin. It can also get hit hard if one military program moves to the right.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Calendar
Next earnings report
Estimated for May 20, 2026. You want to see whether the Q1 beat was a one-quarter spike or the start of a cleaner run-rate.
Program risk
F-16 and military timing
Management cited F-16 timing effects in Q1. That matters because military avionics is $58.8M of the $84.0M revenue mix shown here.
Margin
Gross margin above 50%
54.5% gross margin is a big part of the story. If it slips materially, the niche-economics argument weakens fast.
Street view
Thin target range
The average analyst target is $25.75, with a range of $24–$27. That is upside on paper, but the narrow range also tells you coverage is thin.
Analyst Rankings
earnings predictability
45 / 100
in human-speak, the business can absolutely surprise you — in both directions.
risk rank
3
That puts ISSC around the middle on balance-sheet and business risk. The stock itself feels riskier because price stability is only 15 / 100.
analyst target range
$24–$27
Consensus sits above the current $19.48 price, but thin coverage means one analyst change can move the narrative more than usual.
Source: institutional data
Institutional Activity
institutional ownership data for ISSC is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$19
Current price
Target midpoint · from current
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