NEW YORK ( TheStreet) -- Innovative Solutions and Support (Nasdaq: ISSC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
- Powered by its strong earnings growth of 250.00% and other important driving factors, this stock has surged by 145.06% over the past year, outperforming the rise in the S&P 500 Index during the same period.
- The revenue growth came in higher than the industry average of 4.4%. Since the same quarter one year prior, revenues rose by 21.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ISSC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.09, which clearly demonstrates the ability to cover short-term cash needs.
- 49.63% is the gross profit margin for INNOVATIVE SOLTNS & SUPP INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.47% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 283.0% when compared to the same quarter one year prior, rising from $0.29 million to $1.11 million.