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

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ES:IDR

Indra Sistemas

(LSE:IDR)

Rating:62Neutral
Price Target:
€36.00
▲(4.53% Upside)
Indra Sistemas shows strong financial performance with improved profitability and a healthier balance sheet, contributing positively to the overall score. However, technical indicators suggest a bearish trend, which weighs down the score. The valuation is fair, but the modest dividend yield offers limited income potential. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.
Positive Factors
Defence Budgets
Expectations of increasing European defence budgets have significantly benefited Indra's stock performance.
Revenue and Growth
Indra has consistently beat consensus revenue estimates in every quarter since 1Q23.
Strategic Pivot
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.
Market Valuation
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 (IDR) is a global technology and consulting company headquartered in Spain, specializing in providing advanced solutions and services in the fields of information technology and defense. The company operates in various sectors, including transport, defense, energy, telecommunications, and public administration. Its core offerings encompass software development, systems integration, consulting, and the provision of technological solutions aimed at enhancing operational efficiency and decision-making for its clients.
How the Company Makes MoneyIndra 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
78
Positive
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
72
Positive
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
65
Positive
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%.
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 Price34.44
Price Trends
50DMA
35.83
Negative
100DMA
33.64
Positive
200DMA
26.62
Positive
Market Momentum
MACD
-0.61
Negative
RSI
45.54
Neutral
STOCH
66.28
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 34.44 is below the 20-day moving average (MA) of 34.68, below the 50-day MA of 35.83, and above the 200-day MA of 26.62, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 66.28 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
€5.99B15.8429.23%0.73%7.63%63.33%
61
Neutral
$36.05B6.66-10.61%1.86%8.68%-8.81%
€31.36B23.7027.16%
€289.74M26.6715.90%
$538.85M19.049.35%3.57%
€443.58M28.6719.51%0.93%
€287.35M63.115.46%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:IDR
Indra Sistemas
34.44
17.61
104.67%
GB:0P2W
Amadeus IT Group S.A
72.46
12.49
20.83%
GB:0NO6
Amper SA
0.13
0.03
30.00%
GBDMF
Global Dominion Access SA
2.75
-0.38
-12.14%
ES:ALC
Altia Consultores S.A.
6.45
1.89
41.45%
ES:IZER
Izertis SA
9.94
-0.41
-3.96%

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.

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 16, 2025