Innovative Solutions and Support (FRA:IOE) Interest Coverage: 9.72 (As of Mar. 2026) — 100% Below Median

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FRA:IOE Innovative Solutions and Support Inc FRA:IOE
76 GF Score
Price €15.96
GF Value €15.04
Valuation Fairly Valued
! 3 Warning Signs
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What is Innovative Solutions and Support Interest Coverage?

Innovative Solutions and Support FRA:IOE -0.13% 76 Interest Coverage is 9.72 as of Mar. 2026, which is 100% below its 10-year median of 10,000.00. GuruFocus rates FRA:IOE with a GF Score™ of 76/100 and a GF Value™ of €15.04 (Fairly Valued). The stock has 3 warning signs investors should review. Among 242 Aerospace & Defense companies, Innovative Solutions and Support ranks better than 59.92% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Innovative Solutions and Support's Operating Income for the three months ended in Mar. 2026 was €4.28 Mil. Innovative Solutions and Support's Interest Expense for the three months ended in Mar. 2026 was €-0.44 Mil. Innovative Solutions and Support's interest coverage for the quarter that ended in Mar. 2026 was 9.72. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Innovative Solutions and Support's Interest Coverage or its related term are showing as below:

FRA:IOE' s Interest Coverage Range Over the Past 10 Years
Min: 10.31   Med: No Debt   Max: No Debt
Current: 12


FRA:IOE's Interest Coverage is ranked better than
59.92% of 242 companies
in the Aerospace & Defense industry
Industry Median: 8.285 vs FRA:IOE: 12.00

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Innovative Solutions and Support  (FRA:IOE) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Innovative Solutions and Support Interest Coverage Related Terms


Innovative Solutions and Support Interest Coverage Historical Data

* Premium members only.

The historical data trend for Innovative Solutions and Support's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Innovative Solutions and Support Interest Coverage Chart

Innovative Solutions and Support Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt No Debt 18.74 10.31 11.63

Innovative Solutions and Support Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.04 8.63 16.34 12.67 9.72

FRA:IOE vs SPCE, BUKS, POWW: Interest Coverage Comparison

For the Aerospace & Defense subindustry, Innovative Solutions and Support's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Innovative Solutions and Support Interest Coverage vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Innovative Solutions and Support's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Innovative Solutions and Support's Interest Coverage falls into.


FRA:IOE
76GF Score
Innovative Solutions and Support Inc FRA:IOE
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Innovative Solutions and Support Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Innovative Solutions and Support's Interest Coverage for the fiscal year that ended in Sep. 2025 is calculated as

Here, for the fiscal year that ended in Sep. 2025, Innovative Solutions and Support's Interest Expense was €-1.47 Mil. Its Operating Income was €17.10 Mil. And its Long-Term Debt & Capital Lease Obligation was €18.49 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2025 )/Interest Expense (A: Sep. 2025 )
=-1*17.101/-1.47
=11.63

Innovative Solutions and Support's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Innovative Solutions and Support's Interest Expense was €-0.44 Mil. Its Operating Income was €4.28 Mil. And its Long-Term Debt & Capital Lease Obligation was €42.63 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*4.276/-0.44
=9.72

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 9.72 mean?
Innovative Solutions and Support (FRA:IOE) has a Interest Coverage of 9.72 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Innovative Solutions and Support and its competitors. This is 100% below median its historical median of 10,000.00. Over the past decade, Innovative Solutions and Support's Interest Coverage has ranged from 10.31 to 10,000.00. According to the industry distribution chart, Innovative Solutions and Support ranks #97 out of 242 companies in the Aerospace & Defense industry, placing it in the top 40.1%.
Is Innovative Solutions and Support's Interest Coverage too high?
Innovative Solutions and Support's current Interest Coverage of 9.72 is 100% below median its 10-year median of 10,000.00. Over the past 10 years, this metric has ranged from a low of 10.31 to a high of 10,000.00. The Aerospace & Defense industry median Interest Coverage is 8.29. Innovative Solutions and Support's value of 9.72 is 17.3% above this industry median. Based on the distribution chart, Innovative Solutions and Support ranks #97 out of 242 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Innovative Solutions and Support has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Innovative Solutions and Support's Interest Coverage compare to SPCE and BUKS?
According to the Aerospace & Defense industry distribution chart, Innovative Solutions and Support ranks #97 out of 242 companies for Interest Coverage. This puts Innovative Solutions and Support in the upper half of its industry. The industry median Interest Coverage is 8.29. Innovative Solutions and Support's value of 9.72 is 17.3% above this benchmark. Historically, Innovative Solutions and Support's own Interest Coverage has ranged from 10.31 to 10,000.00 over the past decade. While the company's 10-year median is 10,000.00 vs. the industry median of 8.29, Innovative Solutions and Support has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.29, based on 242 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Innovative Solutions and Support's current Interest Coverage of 9.72 is 17.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Innovative Solutions and Support and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Innovative Solutions and Support's current Interest Coverage is 9.72, which is 100% below median its own 10-year median of 10,000.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Innovative Solutions and Support stock overvalued right now?
Based on GuruFocus' analysis, Innovative Solutions and Support (FRA:IOE) is currently considered Fairly Valued. The stock's GF Value™ is €15.04, compared to a current price of €15.96 — trading 6.1% above its estimated fair value. The current Interest Coverage is 9.72, which is 100% below median its 10-year median of 10,000.00 and 17.3% above the Aerospace & Defense industry median of 8.29. Innovative Solutions and Support's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Innovative Solutions and Support (FRA:IOE), the current Interest Coverage is 9.72 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Innovative Solutions and Support (FRA:IOE) Overvalued in 2026?

Based on GuruFocus' analysis, Innovative Solutions and Support stock appears to be overvalued. The current stock price of €15.96 is trading 6.1% above its estimated GF Value™ of €15.04. GuruFocus considers Innovative Solutions and Support to be Fairly Valued.

Key valuation signals for FRA:IOE:

  • Interest Coverage: 9.72 (100% below median its 10-year median of 10,000.00)
  • GF Value™: €15.04 vs. price of €15.96 (6.1% above fair value)
  • GF Score™: 76/100 with 3 warning signs
  • Industry Position: 17.3% above the Aerospace & Defense median (#97 of 242)

No single metric tells the full story. See the FRA:IOE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Innovative Solutions and Support Business Description

Other Exchanges ISSC:USA
Address 720 Pennsylvania Drive, Exton, PA, USA, 19341
Innovative Solutions and Support Inc is a systems integrator that designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display systems for retrofit applications and original equipment manufacturers. The company supplies integrated Flight Management Systems, Flat Panel Display Systems, Integrated Standby Units, Positioning System receivers that enable reduced carbon footprint navigation, and an Autothrottle, which allows a pilot to automatically control the power setting of the engine and is designed to reduce pilot workload and enhance safety. It sells its products to both the OEM and the retrofit markets.
76GF Score

Get the complete analysis for FRA:IOE

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€15.96
Price
€15.04
GF Value