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Indra Sistemas (ISMAY)
OTHER OTC:ISMAY
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Indra Sistemas
(OTC:ISMAY)
Rating:75Outperform
Price Target:
$24.00
▲(16.00%Upside)
Indra Sistemas (ISMAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.30B
Dividend Yield0.44%
Average Volume (3M)1.95K
Price to Earnings (P/E)17.5
Beta (1Y)0.09
Revenue Growth8.32%
EPS Growth65.87%
CountryUS
Employees60,598
SectorTechnology
Sector Strength90
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.50
Shares Outstanding353,308,000
10 Day Avg. Volume151
30 Day Avg. Volume1,952
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit5.58
Enterprise Value/Ebitda14.17
Forecast
1Y Price Target
$22.50Price Target Upside8.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Indra Sistemas Business Overview & Revenue Model
Company DescriptionIndra Sistemas (ISMAY) is a global technology and consulting company based in Spain, specializing in providing proprietary solutions in the fields of Information Technology (IT) and defense systems. The company operates primarily in two sectors: IT, where it delivers services related to digital transformation, cybersecurity, and data analytics; and Transport & Defense, where it provides systems for air traffic management, rail and road traffic control, and defense electronics. Indra's offerings are designed to enhance operational efficiency and effectiveness for various industries, including public administration, healthcare, transport, and security.
How the Company Makes MoneyIndra Sistemas generates revenue through a combination of service contracts, product sales, and long-term project engagements. In the IT sector, the company earns by deploying digital transformation projects, offering consulting services, and providing IT outsourcing solutions to both public and private entities. In the Transport & Defense sector, revenue streams include contracts for the development and maintenance of defense systems, air traffic management solutions, and intelligent transportation systems. Indra often engages in partnerships and collaborations with governmental bodies and international organizations, which bolster its revenue through large-scale contracts and strategic alliances. Additionally, the company invests in research and development, fostering innovation that supports its competitive edge and financial growth.
Indra Sistemas Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q4-2024)
| % Change Since: -8.09%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in revenue growth, international expansion, and defense sector performance, contributing to a positive outlook. However, challenges in TESS Defense and uncertainties around Minsait's divestment were noted. Overall, the sentiment leans positive due to the outweighing highlights.Q4-2024 Updates
Positive Updates
Record Revenue and Growth
Indra achieved revenue of more than €4.8 billion, with an EBITDA margin of 11.3% and an EBIT margin of 9%, reflecting solid growth and operational improvements.
Strong Defense Sector Performance
Order intake in the defense sector climbed by 29% with a revenue growth of 26% in fiscal 2024, driven by significant contributions from integrated systems and simulation.
International Expansion Success
Indra nearly doubled its order intake in North America and Central and Northern Europe compared to 2023. Additionally, order intake grew by 41% in the Middle East and North Africa.
Positive Cash Flow and Debt Position
Indra generated €328 million in cash flow, reducing net debt to a net cash position of €86 million.
Space Segment Growth
The acquisition of Deimos Hispasat and Hisdesat positions Indra as the most integrated space company in Europe in secure communications applications and satellite surveillance.
Negative Updates
Challenges in TESS Defense
The majority acquisition of TESS Defense presented challenges, including delivery issues and the need for improved manufacturing capabilities to meet delivery schedules.
Minsait Divestment Uncertainty
Uncertainty remains regarding the divestment of Minsait, with the company indicating that it will not rush the process and is prioritizing finding the right partner.
Company Guidance
During the call, Indra Group provided guidance for the fiscal year 2024, highlighting several key metrics. The company achieved a revenue of over €4.8 billion, with an EBITDA margin of 11.3% and an EBIT margin of 9%, reflecting strong operational improvements and a shift in the business model. Indra's order backlog grew by 7%, while order intake increased by 17%, driven by strength in defense and international expansion. The company also reported a significant cash generation of €328 million, resulting in a net cash position of €86 million. Looking ahead to 2025, Indra aims to surpass €5.2 billion in revenue, exceed €490 million in EBIT, and generate more than €300 million in free cash flow. Additionally, the defense business saw a 29% increase in order intake, while Minsait's digital offerings now account for more than 50% of total revenue. The company's strategic plan includes boosting investment in technological R&D and strengthening its industrial capabilities to ensure sustainable growth.Indra Sistemas Financial Statement Overview
Summary
Indra Sistemas displays strong financial performance with significant revenue growth, efficient cost management, and robust cash flow generation. The company maintains a solid equity position and balanced leverage, indicating financial stability and potential for future growth.Income Statement
Indra Sistemas has demonstrated strong revenue growth, with a 23.58% increase from the previous year, along with healthy gross and net profit margins of 23.48% and 5.78% respectively for the TTM period. The EBIT margin of 9.27% and EBITDA margin of 9.25% suggest efficient cost management and profitability. These indicators show robust financial performance and profitability in the income statement.85
Very Positive
Balance Sheet
The company's balance sheet shows a solid equity position, with an equity ratio of 25.78% and a manageable debt-to-equity ratio of 0.49, indicating balanced leverage. The return on equity (ROE) of 25.77% for TTM indicates efficient use of equity to generate profits. Overall, the balance sheet reflects financial stability and prudent capital management, although there is room for improving equity ratios.78
Positive
Cash Flow
The cash flow statement reveals a strong free cash flow growth rate of 52.99% and a robust operating cash flow to net income ratio of 1.87 for TTM, indicating efficient cash conversion and strong liquidity. The free cash flow to net income ratio of 1.50 suggests the company is effectively generating cash from its operations, providing flexibility for future investments or debt reduction.82
Very Positive
| 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 | 837.53M |
| EBITDA | 545.28M | 455.06M | 388.86M | 340.79M | 75.44M |
| Net Income | 277.54M | 205.75M | 171.90M | 143.37M | -65.15M |
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 | 1.04B | 1.24B | 1.58B | 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 | -24.06M |
| Financing Cash Flow | -333.72M | -439.63M | -605.62M | -269.20M | 172.12M |
Indra Sistemas Technical Analysis
Positive
20.69
Price Trends
20.92
Positive
18.19
Positive
13.76
Positive
Market Momentum
0.03
Positive
46.68
Neutral
4.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISMAY, the sentiment is Positive. The current price of 20.69 is below the 20-day moving average (MA) of 21.87, below the 50-day MA of 20.92, and above the 200-day MA of 13.76, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 4.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISMAY.
Indra Sistemas Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $7.43B | 14.46 | 22.21% | 1.52% | 7.31% | -15.86% | |
77 Outperform | $6.72B | 25.75 | 10.49% | 1.84% | 6.94% | 24.05% | |
76 Outperform | $10.14B | 21.75 | 13.48% | ― | 14.16% | 22.25% | |
75 Outperform | $7.30B | 17.55 | 28.45% | 0.44% | 8.32% | 65.87% | |
74 Outperform | $5.19B | 15.51 | 21.63% | 1.34% | 3.39% | -16.78% | |
65 Neutral | $8.55B | 21.11 | 11.57% | ― | 4.72% | -3.06% | |
63 Neutral | £521.99M | 21.49 | -8.07% | 2.77% | 3.30% | -18.10% |
* Technology Sector Average
Performance Comparison
ISMAY
Indra Sistemas
20.93
11.66
125.78%
CACI
Caci International
466.68
23.25
5.24%
DLB
Dolby Laboratories
72.38
0.00
0.00%
EPAM
Epam Systems
153.30
-48.95
-24.20%
G
Genpact
42.55
10.55
32.97%
SAIC
Science Applications
113.21
-5.16
-4.36%
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.