Indra Sistemas (IDR) AI Stock Analysis

• Market Cap: €8.10B
• Dividend Yield: 0.51%
• Average Volume (3M): 845.63K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.29
• Revenue Growth: 7.63%
• EPS Growth: 63.33%
• Country: ES
• Employees: 60,598
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.46
• Shares Outstanding: 176,654,400
• 10 Day Avg. Volume: 936,783
• 30 Day Avg. Volume: 845,628
• 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: €43.22
• Price Target Upside: -12.15% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: €53.00 ▲(7.72% Upside)

Indra Sistemas shows strong financial performance with improved profitability and a healthier balance sheet. However, technical indicators suggest the stock is overbought, and valuation metrics indicate it may be expensive. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a robust market position and effective business strategy, supporting long-term expansion.

Profitability

High return on equity reflects efficient use of capital and strong profit generation, enhancing shareholder value over time.

Operational Efficiency

Stable margins suggest effective cost management and operational control, which are crucial for sustaining profitability and competitiveness.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow can limit the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term liquidity.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, which could erode profitability if not managed effectively.

Equity Financing Reliance

Moderate reliance on equity financing may dilute existing shareholders and impact return on equity, affecting investor appeal.

Indra Sistemas Business Overview & Revenue Model

Company Description

Indra 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 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: 49.20
• 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 49.2 is above the 20-day moving average (MA) of 43.71, above the 50-day MA of 38.81, and above the 200-day MA of 31.72, indicating a bullish trend. The MACD of 2.94 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 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
AMS	―	€29.58B	22.36	27.16%	2.09%	9.43%	15.13%
IDR	―	€8.10B	21.42	29.23%	0.51%	7.63%	63.33%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IZER	―	€270.98M	47.81	6.51%	―	18.40%	18.62%
DOM	―	$459.12M	24.04	9.35%	2.53%	-6.21%	-46.67%