Indra Sistemas (IDR) AI Stock Analysis

• Market Cap: €6.42B
• Dividend Yield: 0.69%
• Average Volume (3M): 660.30K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.32
• Revenue Growth: 7.63%
• EPS Growth: 63.33%
• Country: ES
• Employees: 60,598
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.88
• Shares Outstanding: 176,654,400
• 10 Day Avg. Volume: 712,532
• 30 Day Avg. Volume: 660,301
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €43.10
• Price Target Upside: 18.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: €36.00 ▼(-1.26% Downside)

Indra Sistemas shows strong financial performance with solid revenue growth and profitability. However, technical indicators suggest potential bearish momentum, and the valuation is reasonable but not compelling. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Negative Factors

Indra Sistemas Business Overview & Revenue Model

Company Description

Indra Sistemas, S.A. operates as a technology and consulting company worldwide. It designs, develops, produces, integrates, operates, maintains, repairs, and markets systems, solutions, and services based on the use of information technologies, electronics, and communication; and for surveillance and security control of facilities. It also researches, engineers, designs, develops, manufactures, markets, installs, maintains, and repairs devices, equipment, and systems for data communication, encryption systems, encryption, beacon, and command and control center; manages, executes, commercializes, and sells system engineering services for the defense industry; and provides engineering and maintenance services for air defense systems and other related systems, as well as architectural and engineering technical services. In addition, it offers systems to aid navigation and landing, and air traffic control systems; outsources business processes; delivers document management services and mortgage management; realizes measures for the settlement and registration; and manages digitalization and data capture. Further, it provides business consulting, technology and solutions consulting, administration, management, support, advisory, telecommunications, mobile telephony, credit card processing, and energy transport and distribution network manufacture services; engineering and consultancy services for environment, transport, construction, water, and industry areas; and digital agency, web communication and marketing, securities, computer programing, aerodrome air traffic, radio communication security, port infrastructure, airline training and coaching, and project services. Additionally, it researches and develops autonomous air systems and solutions in unmanned systems; and develops and produces aircraft, tactical communication systems, and toll and traffic control and management systems. Indra Sistemas, S.A. was founded in 1921 and is headquartered in Alcobendas, Spain.

How the Company Makes Money

Indra Sistemas generates revenue through multiple streams, primarily focusing on project-based contracts, consulting services, and software licenses. The company engages in long-term contracts with government and private entities, providing customized solutions that meet specific operational needs. Key revenue streams include the implementation of IT systems, ongoing maintenance and support services, and the sale of proprietary software products. Additionally, Indra has formed strategic partnerships with major technology firms, which enhance its service offerings and expand its market reach, contributing to its overall earnings. The company's diverse portfolio and expertise in high-demand sectors allow it to adapt to changing market conditions and capitalize on emerging opportunities.

Indra Sistemas Financial Statement Overview

Summary

Indra Sistemas demonstrates strong revenue growth and improved profitability, with stable operational efficiency. The balance sheet reflects a healthier leverage position and strong return on equity, though the equity ratio suggests moderate reliance on equity. Cash flow generation is adequate, but the recent decline in free cash flow growth warrants attention. Overall, the company is on a positive trajectory with some areas for improvement in cost management and cash flow stability.

Income Statement

Indra Sistemas shows a solid revenue growth trajectory with a TTM revenue growth rate of 1.66%. The gross profit margin has decreased to 23.72% from 34.72% in the previous year, indicating potential cost pressures. However, the net profit margin has improved slightly to 6.21%, reflecting better cost management. EBIT and EBITDA margins are stable, indicating consistent operational efficiency.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.70, indicating a healthier leverage position compared to previous years. Return on equity has increased to 28.67%, showcasing strong profitability. The equity ratio stands at 22.18%, suggesting a moderate reliance on equity financing.

Cash Flow

Free cash flow has decreased by 6.36% in the TTM, which could be a concern for liquidity. However, the operating cash flow to net income ratio of 0.23 indicates that the company is generating adequate cash from its operations relative to its net income. The free cash flow to net income ratio remains strong at 78.33%.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.08B	4.84B	4.34B	3.85B	3.39B	3.04B
Gross Profit	1.44B	1.68B	1.08B	1.29B	1.04B	924.22M
EBITDA	668.74M	545.28M	485.77M	420.04M	354.83M	90.07M
Net Income	377.81M	277.54M	205.75M	171.90M	143.37M	-57.47M
Balance Sheet
Total Assets	6.48B	4.96B	4.72B	4.54B	4.54B	4.46B
Cash, Cash Equivalents and Short-Term Investments	704.40M	556.58M	656.29M	974.10M	1.26B	1.19B
Total Debt	1.01B	850.87M	822.53M	1.24B	1.72B	1.94B
Total Liabilities	5.03B	3.64B	3.59B	3.53B	3.69B	3.78B
Stockholders Equity	1.44B	1.30B	1.12B	987.01M	820.17M	664.78M
Cash Flow
Free Cash Flow	486.87M	339.89M	316.81M	296.14M	295.48M	129.89M
Operating Cash Flow	621.59M	450.89M	379.52M	350.26M	344.64M	195.85M
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	-269.20M	209.02M

Indra Sistemas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:IDR, the sentiment is Positive. The current price of 36.46 is above the 20-day moving average (MA) of 33.95, above the 50-day MA of 35.26, and above the 200-day MA of 28.01, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.92 is Neutral, neither overbought nor oversold. The STOCH value of 86.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:IDR.

Indra Sistemas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMS	70 Outperform	29.35B	22.18	24.75%	2.06%	9.43%	15.13%
IDR	64 Neutral	€6.42B	16.98	29.23%	0.69%	7.63%	63.33%
DOM	57 Neutral	480.64M	25.17	10.56%	2.42%	-6.21%	-46.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%