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Indra Sistemas SA (ES:IDR)
BME:IDR
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Indra Sistemas (IDR) AI Stock Analysis

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ES:IDR

Indra Sistemas

(BME:IDR)

Rating:68Neutral
Price Target:
€40.00
▲(12.99% Upside)
Indra Sistemas shows strong financial performance with improved profitability and a healthier balance sheet, which are the most significant factors driving the score. Technical analysis indicates a neutral trend with potential for upward movement. Valuation metrics suggest the stock is fairly valued, though the dividend yield is modest. Overall, the stock is on a positive trajectory with some areas for improvement in cost management and cash flow stability.
Positive Factors
Financial performance
Indra has consistently beat consensus revenue estimates in every quarter since 1Q23.
Growth potential
Indra's transformation into a Spanish defence champion is still in the early innings, suggesting further growth potential.
Strategic transformation
Indra's shares have surged driven by its strategic pivot towards Aerospace & Defence.
Negative Factors
Acquisition timeline
Indra's acquisition of Hispasat is expected to be closed in 4Q25, which could enhance its market position.
Valuation concerns
Despite trading at a premium to European IT Services peers, Indra remains at a significant discount to the European Defence average.

Indra Sistemas (IDR) vs. iShares MSCI Spain ETF (EWP)

Indra Sistemas Business Overview & Revenue Model

Company DescriptionIndra Sistemas, S.A. is a global technology and consulting company headquartered in Spain. It operates primarily in two sectors: Information Technology (IT) and Transport & Defence (T&D). The company offers a wide range of services including consulting, project development, systems integration, and outsourcing for various industries such as telecommunications, energy, financial services, and public administration. Indra is also a prominent player in the defence sector, providing advanced solutions and services related to air traffic management, simulation, and control systems.
How the Company Makes MoneyIndra Sistemas generates revenue through a diverse business model that includes multiple streams. In the IT sector, the company earns money by providing consulting services, developing and integrating systems, and offering outsourcing solutions. These services are catered to a variety of industries, allowing for a broad customer base. In the Transport & Defence sector, Indra earns revenue by delivering high-tech solutions such as air traffic management systems, defence electronics, and simulation technologies. The company often engages in large-scale, long-term contracts with governments and large enterprises, which form a significant part of its earnings. Additionally, Indra benefits from strategic partnerships and collaborations that enhance its service offerings and market reach.

Indra Sistemas Financial Statement Overview

Summary
Indra Sistemas exhibits strong financial performance with consistent revenue and profit growth, excellent operational efficiency, and robust cash flow generation, though debt level fluctuations require monitoring.
Income Statement
85
Very Positive
Indra Sistemas has demonstrated robust revenue growth, with a significant increase from €4.34 billion in 2023 to €5.99 billion in the TTM (Trailing-Twelve-Months) period ending March 2025. This represents a strong upward trajectory in revenue. The company also maintains healthy margins, with a gross profit margin of 17.2% and a net profit margin of 5.8% in the TTM. EBIT and EBITDA margins are 9.3% and 9.2%, respectively, indicating operational efficiency. However, a slight decline in gross profit margin is observed from previous periods.
Balance Sheet
78
Positive
The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.49 in the TTM, reflecting moderate leverage. The equity ratio of 25.8% indicates a solid capital structure. Return on Equity (ROE) stands at 25.8%, showcasing effective use of equity to generate profits. Despite these strengths, the company's total debt has fluctuated, warranting close monitoring.
Cash Flow
82
Very Positive
Cash flow analysis shows a positive trend with free cash flow growing from €316.8 million in 2023 to €519.9 million in TTM 2025, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.88 highlights efficient cash conversion. The company's free cash flow to net income ratio also demonstrates robust cash flow relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.08B4.84B4.34B3.85B3.39B3.04B
Gross Profit1.44B1.68B1.08B1.29B1.04B924.22M
EBITDA668.74M545.28M485.77M420.04M354.83M90.07M
Net Income377.81M277.54M205.75M171.90M143.37M-57.47M
Balance Sheet
Total Assets6.48B4.96B4.72B4.54B4.54B4.46B
Cash, Cash Equivalents and Short-Term Investments704.40M556.58M656.29M974.10M1.26B1.19B
Total Debt1.01B850.87M822.53M1.24B1.72B1.94B
Total Liabilities5.03B3.64B3.59B3.53B3.69B3.78B
Stockholders Equity1.44B1.30B1.12B987.01M820.17M664.78M
Cash Flow
Free Cash Flow486.87M339.89M316.81M296.14M295.48M129.89M
Operating Cash Flow621.59M450.89M379.52M350.26M344.64M195.85M
Investing Cash Flow-110.20M-81.91M-274.27M-55.27M-26.77M-60.96M
Financing Cash Flow-223.30M-333.72M-439.63M-605.62M-269.20M209.02M

Indra Sistemas Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price35.40
Price Trends
50DMA
36.21
Negative
100DMA
32.51
Positive
200DMA
25.28
Positive
Market Momentum
MACD
-0.07
Positive
RSI
42.49
Neutral
STOCH
32.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:IDR, the sentiment is Neutral. The current price of 35.4 is below the 20-day moving average (MA) of 37.29, below the 50-day MA of 36.21, and above the 200-day MA of 25.28, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 32.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:IDR.

Indra Sistemas Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
€30.54B23.0827.16%2.00%9.43%15.13%
68
Neutral
€6.44B17.0229.23%0.71%7.63%63.33%
60
Neutral
$457.68M23.979.35%2.52%-6.21%-46.67%
50
Neutral
AU$1.62B3.22-31.35%3.49%16.14%-6.73%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:IDR
Indra Sistemas
35.40
18.78
113.02%
ES:AMS
Amadeus IT Group S.A
71.46
15.57
27.86%
ES:DOM
Global Dominion Access SA
3.22
0.54
20.19%

Indra Sistemas Corporate Events

Indra Sistemas Shifts Liquidity Management Strategy
May 26, 2025

Indra Sistemas has terminated its liquidity contract with Banco Santander and signed a new one with Banco Sabadell. This change is part of the company’s ongoing efforts to manage its financial operations effectively, reflecting a strategic move that could impact its liquidity management and stakeholder relations.

The most recent analyst rating on (ES:IDR) stock is a Hold with a EUR18.00 price target. To see the full list of analyst forecasts on Indra Sistemas stock, see the ES:IDR Stock Forecast page.

Indra Sistemas Enhances Share Liquidity with New Banco Sabadell Contract
May 26, 2025

Indra Sistemas has announced a new liquidity contract with Banco Sabadell to enhance the liquidity and regularity of its share trading. This contract, effective from May 27, 2025, for a term of 12 months, involves the allocation of 107,475 shares and €3,834,708 in cash, reflecting Indra’s strategic efforts to stabilize its market presence and potentially benefit stakeholders through improved share trading conditions.

The most recent analyst rating on (ES:IDR) stock is a Hold with a EUR18.00 price target. To see the full list of analyst forecasts on Indra Sistemas stock, see the ES:IDR Stock Forecast page.

Indra Sistemas Announces General Shareholders’ Meeting and Key Agenda Items
May 22, 2025

Indra Sistemas has announced the convening of its ordinary General Shareholders’ Meeting on June 25, 2025, with a second call on June 26 if necessary. Key agenda items include the approval of the 2024 fiscal year accounts, dividend distribution, re-election of Deloitte as auditor for 2025, and appointment of PricewaterhouseCoopers for subsequent years. The meeting will also address the ratification and appointment of board directors, indicating a strategic focus on governance and financial transparency.

The most recent analyst rating on (ES:IDR) stock is a Hold with a EUR18.00 price target. To see the full list of analyst forecasts on Indra Sistemas stock, see the ES:IDR Stock Forecast page.

Indra Sistemas Announces Board Changes and New Appointments
May 20, 2025

Indra Sistemas has announced changes to its Board of Directors, including the termination of the executive services contract with IT director Luis Abril Mazuelas, effective June 25, 2025, with his continued involvement until September 30, 2025, to ensure a smooth transition. Additionally, the company plans to appoint new independent directors, Eva Fernández Góngora and Oriol Pinya Salomó, aiming to achieve a balanced gender representation on the Board, aligning with legal requirements.

The most recent analyst rating on (ES:IDR) stock is a Hold with a EUR18.00 price target. To see the full list of analyst forecasts on Indra Sistemas stock, see the ES:IDR Stock Forecast page.

Indra Group Reports Strong Growth in Contracting and Revenue
May 6, 2025

Indra Group has reported significant growth in its contracting and portfolio, with an 11% increase in its portfolio and a 17% rise in contracting by the end of March 2025. The company has also seen revenue and profitability growth, with a 4% increase in revenues in the first quarter of 2025 compared to the same period in 2024, driven primarily by the defense sector. Indra’s strategic plan, ‘Leading the Future,’ is on track, with expectations to achieve its revenue goal of 10,000 million euros ahead of the initial 2030 target, bolstered by acquisitions and expansions in key sectors.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2025