Indra Sistemas (IDR) AI Stock Analysis

• Market Cap: €11.05B
• Dividend Yield: 0.52%
• Average Volume (3M): 845.63K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.52
• Revenue Growth: 6.92%
• EPS Growth: 57.04%
• Country: ES
• Employees: 60,598
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.82
• Shares Outstanding: 176,654,400
• 10 Day Avg. Volume: 936,783
• 30 Day Avg. Volume: 845,628
• PEG Ratio: 0.34
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 19.07
• 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: €64.50
• Price Target Upside: 2.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.52
• Revenue Forecast (FY): €6.59B

• Rating: 68 Neutral
• Price Target: €68.00 ▲(8.37% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by improved profitability and solid cash generation, but is held back by 2025’s sharp revenue and gross-margin deterioration plus higher leverage. Technically, the stock shows strong upward momentum versus key moving averages, while valuation is mixed with a higher P/E partly offset by the provided dividend yield.

Positive Factors

Cash generation

Consistent free cash flow and strong earnings-to-cash conversion provide durable internal funding for operations, capex and working capital. Over a 2–6 month horizon this underpins liquidity, supports ongoing contracts and reduces reliance on external financing for normal business needs.

Improved profitability & ROE

Material margin and profit improvements versus the 2020 loss-making period, combined with strong recent ROE, signal structurally higher earnings quality. This improvement increases capacity to reinvest, maintain service levels and absorb shocks across the business over coming months.

Diversified business model

A multi-channel revenue mix across IT services, software and long-term government/enterprise contracts spreads demand risk by sector. This structural diversification and recurring-contract profile helps stabilize revenues and supports durability of cash flows over a medium-term horizon.

Negative Factors

2025 revenue & margin hit

A notable top-line contraction and gross-margin deterioration in 2025 suggests structural pressure from pricing, contract mix or execution. If persistent, reduced revenue and margins will erode operating leverage and strain the company's ability to sustain investments or cushion shocks over the next several months.

Higher leverage

A meaningful increase in total debt and balance-sheet expansion raises financial risk and reduces flexibility. Higher leverage increases interest and refinancing risk, limiting maneuverability to pursue growth or absorb further margin pressure in a 2–6 month horizon.

Volatile growth & weaker FCF in 2025

Declining free cash flow combined with modest operating cash relative to debt undermines resilience. This reduces the buffer to fund operations or service debt if revenues remain volatile, making medium-term capital allocation and dividend/external financing decisions more constrained.

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 channels, primarily by delivering IT services and solutions tailored to specific industry needs. Its key revenue streams include consulting services, software licensing, maintenance contracts, and project-based work in areas such as systems integration and outsourcing. The company often engages in long-term contracts with government agencies and large enterprises, which provide a steady income flow. Additionally, strategic partnerships with technology providers and collaborations on research and development projects also contribute to its earnings, enabling Indra to stay competitive in the rapidly evolving tech landscape.

Indra Sistemas Financial Statement Overview

Summary

Profitability is materially improved versus 2020 and free cash flow remains consistently positive with good earnings-to-cash conversion. Offsetting this, 2025 shows a sharp revenue decline, weaker gross margin, declining free cash flow, and a leverage step-up (higher total debt and debt-to-equity), increasing volatility and balance-sheet risk.

Income Statement

Profitability has improved materially versus 2020 (loss-making then vs. solid profits in 2021–2025), with 2025 showing healthy operating and net margins. However, growth has turned volatile: revenue expanded strongly from 2021–2024, but 2025 reported a sharp revenue decline and a sizable drop in gross margin, suggesting pressure from pricing, mix, or project execution. Net income rose in 2025, but the top-line contraction and margin swing keep the quality of the trend from scoring higher.

Balance Sheet

Returns on equity are strong in recent years, indicating effective profit generation on the equity base. The main concern is leverage and balance-sheet expansion: debt-to-equity improved meaningfully from 2020–2021 highs, but stepped up again in 2025, alongside a large jump in total assets and total debt versus 2024. This increases financial risk and reduces flexibility if earnings or cash flows soften.

Cash Flow

Cash generation is consistently positive, with free cash flow broadly tracking earnings well (free cash flow close to net income across most years, including 2025). That said, free cash flow declined in 2025 and the company shows relatively modest operating cash flow relative to its debt load, which limits the score despite otherwise solid conversion of profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.08B	5.46B	4.84B	4.34B	3.85B	3.39B
Gross Profit	1.44B	1.29B	1.68B	1.08B	1.29B	1.04B
EBITDA	668.74M	591.14M	545.28M	474.39M	388.86M	340.79M
Net Income	377.81M	435.83M	277.54M	205.75M	171.90M	143.37M
Balance Sheet
Total Assets	6.48B	9.36B	4.96B	4.72B	4.54B	4.54B
Cash, Cash Equivalents and Short-Term Investments	704.40M	976.19M	556.58M	656.29M	974.10M	1.26B
Total Debt	1.01B	1.88B	850.87M	822.53M	1.24B	1.72B
Total Liabilities	5.03B	7.23B	3.64B	3.59B	3.53B	3.69B
Stockholders Equity	1.44B	1.73B	1.30B	1.12B	987.01M	820.17M
Cash Flow
Free Cash Flow	486.87M	447.15M	339.89M	316.81M	296.14M	295.48M
Operating Cash Flow	621.59M	491.23M	450.89M	379.52M	350.26M	344.64M
Investing Cash Flow	-110.20M	-904.98M	-81.91M	-274.27M	-55.27M	-26.77M
Financing Cash Flow	-207.90M	810.04M	-333.72M	-439.63M	-605.62M	-269.20M

Indra Sistemas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 62.75 is above the 20-day moving average (MA) of 52.41, above the 50-day MA of 52.97, and above the 200-day MA of 42.76, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 70.29 is Negative, neither overbought nor oversold. The STOCH value of 75.69 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	69 Neutral	€22.98B	17.35	27.50%	2.24%	8.08%	11.80%
IDR	68 Neutral	€11.05B	25.29	28.47%	0.52%	6.92%	57.04%
IZER	66 Neutral	€307.99M	45.36	6.51%	―	18.40%	18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DOM	58 Neutral	€456.25M	23.89	9.35%	2.48%	-6.21%	-46.67%