Indra Sistemas (IDR) AI Stock Analysis

• Market Cap: €6.68B
• Dividend Yield: 0.53%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.45
• Revenue Growth: 7.60%
• EPS Growth: 22.72%
• Country: ES
• Employees: 60,598
• Sector: Technology
• Sector Strength: 93
• Industry: Information Technology Services
• EPS (TTM): 0.34
• Shares Outstanding: 176,654,400
• 10 Day Avg. Volume: 955,128
• 30 Day Avg. Volume: 1,115,552
• PEG Ratio: -38.40
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.88
• 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: €39.30
• Price Target Upside: 3.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 80 Outperform
• Price Target: €40.00 ▲(5.49%Upside)

Indra Sistemas achieves a strong overall score due to its robust financial performance and positive technical indicators. While it shows strong operational efficiency and cash flow, its valuation is average, and caution is advised due to potential overbought technical conditions.

Positive Factors

Financial Performance

Indra has consistently beat consensus revenue estimates in every quarter since the first quarter.

Growth Potential

Indra's transformation into a Spanish defence champion is still in the early innings, suggesting further growth potential.

Strategic Pivot

Indra's shares have surged over 94% driven by its strategic pivot towards Aerospace & Defence.

Negative Factors

Acquisition Timeline

Indra's acquisition of Hispasat is expected to be closed in the fourth quarter of 2025, which could delay its market position enhancement.

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 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.84B	4.34B	3.85B	3.39B	3.04B
Gross Profit	1.68B	1.08B	1.29B	1.04B	924.22M
EBITDA	545.28M	485.77M	420.04M	354.83M	90.07M
Net Income	277.54M	205.75M	171.90M	143.37M	-57.47M
Balance Sheet
Total Assets	4.96B	4.72B	4.54B	4.54B	4.46B
Cash, Cash Equivalents and Short-Term Investments	556.58M	656.29M	974.10M	1.26B	1.19B
Total Debt	850.87M	822.53M	1.24B	1.72B	1.94B
Total Liabilities	3.64B	3.59B	3.53B	3.69B	3.78B
Stockholders Equity	1.30B	1.12B	987.01M	820.17M	664.78M
Cash Flow
Free Cash Flow	339.89M	316.81M	296.14M	295.48M	129.89M
Operating Cash Flow	450.89M	379.52M	350.26M	344.64M	195.85M
Investing Cash Flow	-81.91M	-274.27M	-55.27M	-26.77M	-60.96M
Financing Cash Flow	-333.72M	-439.63M	-605.62M	-269.20M	209.02M

Indra Sistemas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 37.92 is above the 20-day moving average (MA) of 35.99, above the 50-day MA of 34.73, and above the 200-day MA of 23.67, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 69.38 is Neutral, 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
IDR	80 Outperform	€6.68B	24.68	22.02%	0.53%	7.60%	22.72%
Sector *	50 Neutral	C$3.01B	2.40	-63.12%	2.48%	4.49%	-6.07%
0P2W	―	€30.86B	23.89	25.95%	2.04%	―	―
0NO6	―	€310.38M	1,390.00		―	―	―
GBDMF	―	$558.07M	12.12	13.57%	3.93%	―	―
ALC	―	€440.14M	28.44	19.51%	0.75%	―	―
IZER	―	€307.46M	67.62	5.46%	―	―	―

Indra Sistemas Corporate Events

Indra Sistemas Shifts Liquidity Management Strategy

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

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

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

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

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.

Indra Explores Strategic Collaboration with Escribano

Indra Sistemas has announced that it is exploring potential collaborations with Escribano Mechanical and Engineering as part of its ongoing strategic plan. This initiative reflects Indra’s commitment to strengthening its position in the defense sector by seeking valuable partnerships, although no definitive decisions have been made yet.