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Indra Sistemas
(OTC:ISMAY)
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Rating:76Outperform
Price Target:
$41.00
▲(35.05% Upside)
Action:Reiterated
Date:08/02/26
The score is driven primarily by solid financial performance (growth and strong cash conversion, albeit with leverage and TTM gross-margin noise) and a supportive technical trend (price above key moving averages). The latest earnings call reinforces demand visibility and profitability improvements, but highlights cash-flow dependence on PEM prepayments and execution risks. Valuation is reasonable on earnings but offers a low dividend yield.
Positive Factors
Record backlog and order intake
A record EUR 20.5bn backlog and strong order intake provide multi-year revenue visibility and reduce near-term demand risk. Large, contracted projects in defense, ATM and mobility convert into long-lived revenue and follow-on maintenance, supporting durable top-line growth and operational planning.
Negative Factors
Dependence on PEM prepayments and timing
Material reliance on large PEM prepayments creates cash and working-capital distortions and ties reported liquidity to program timing. If prepayment cadence or Ministry awards slow, reported cash metrics and comparable FCF can drop sharply, raising execution and funding-risk over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and order intake
A record EUR 20.5bn backlog and strong order intake provide multi-year revenue visibility and reduce near-term demand risk. Large, contracted projects in defense, ATM and mobility convert into long-lived revenue and follow-on maintenance, supporting durable top-line growth and operational planning.
Read all positive factors
Indra Sistemas (ISMAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.54B
Dividend Yield0.52%
Average Volume (3M)245.00
Price to Earnings (P/E)22.6
Beta (1Y)0.49
Revenue Growth32.90%
EPS Growth24.16%
CountryUS
Employees62,396
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.52
Shares Outstanding353,308,000
10 Day Avg. Volume482
30 Day Avg. Volume245
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)2.46
Price to Sales (P/S)0.82
P/FCF Ratio9.95
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Indra Sistemas Business Overview & Revenue Model
Company Description
Indra Sistemas, S.A. is a global technology and consulting firm. The company's operations span the complete lifecycle of technology solutions, from their design, development, and production to integration, ongoing operation, maintenance, repair, a...
How the Company Makes Money
Indra makes money mainly by selling and operating technology and engineering solutions under customer contracts, with revenue typically recognized from (a) project-based delivery (systems integration and deployment) and (b) recurring service provi...
Indra Sistemas Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a materially positive operational and financial picture: record backlog, double-digit revenue growth, a sharp defense and space upswing, margin expansion, and a strong reported cash position. Many headline improvements are partly explained by accounting/consolidation effects (Hispasat/Hisdesat) and large PEM prepayments, and management flagged some caution that comparable free cash flow and certain margins may moderate as prepayments are deployed and execution continues. Near-term risks include PEM timing, Space organic milestone timing, low Mobility margins despite strong order intake, and an early-stage strategic plan under a new CEO. Overall, the positive commercial momentum, backlog strength and improved profitability materially outweigh the caveats and operational risks discussed.Positive Updates
Record Backlog and Strong Order Intake
Order backlog reached a record EUR 20.5 billion, up 117% year-on-year. Order intake grew 58% to EUR 5.0 billion, driven by strong momentum in defense and contributions from Hispasat/Hisdesat.
Negative Updates
Comparable Free Cash Flow Much Lower After Adjustments
After adjusting reported FCF for PEM prepayments and discontinued quarter-end factoring, comparable free cash flow for H1 2026 was EUR 15 million versus EUR 65 million in H1 2025. Management warns reported FCF will moderate as PEM prepayments are deployed.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Backlog and Strong Order Intake
Order backlog reached a record EUR 20.5 billion, up 117% year-on-year. Order intake grew 58% to EUR 5.0 billion, driven by strong momentum in defense and contributions from Hispasat/Hisdesat.
Read all positive updates
Company Guidance
Management reaffirmed 2026 targets: group revenue guidance of around EUR 7.7 billion, EBIT above EUR 700 million and free cash flow of more than EUR 375 million (excluding PEM prepayments). For context, H1 showed a record backlog of EUR 20.5 billion and order intake of EUR 5.0 billion, H1 revenues of EUR 3.2 billion (+30% YoY; organic +16%), EBIT margin 9.9% (10.6% ex‑TESS), EBITDA and EBIT up 22% and 51% respectively, net income EUR 219 million (+2%), reported free cash flow EUR 1.5 billion (comparable FCF EUR 15 million after adjusting for EUR 1.7 billion PEM prepayments and removal of ~EUR 187 million factoring), net cash EUR 1.0 billion (net debt/EBITDA -1.3x), consolidated cash EUR 2.5 billion and EUR 949 million of available committed credit lines (including EUR 385 million EIB); management also guided full‑year CapEx of ~EUR 300 million (H1 net CapEx EUR 183 million, implying ~4–4.3% of revenues vs ~2.5% in 2025).Indra Sistemas Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.19B | 5.24B | 4.84B | 4.34B | 3.85B | 3.39B |
| Gross Profit | 951.30M | 1.24B | 1.68B | 1.08B | 1.29B | 1.04B |
| EBITDA | 862.14M | 567.81M | 545.28M | 455.06M | 388.86M | 340.79M |
| Net Income | 440.09M | 418.63M | 277.54M | 205.75M | 171.90M | 143.37M |
Balance Sheet | ||||||
| Total Assets | 11.75B | 9.35B | 4.96B | 4.72B | 4.54B | 4.54B |
| Cash, Cash Equivalents and Short-Term Investments | 2.88B | 975.78M | 556.58M | 656.29M | 974.10M | 1.26B |
| Total Debt | 2.26B | 1.75B | 850.87M | 1.04B | 1.24B | 1.58B |
| Total Liabilities | 9.51B | 7.23B | 3.64B | 3.59B | 3.53B | 3.69B |
| Stockholders Equity | 1.94B | 1.73B | 1.30B | 1.12B | 987.01M | 820.17M |
Cash Flow | ||||||
| Free Cash Flow | 2.18B | 429.50M | 339.89M | 316.81M | 296.14M | 295.48M |
| Operating Cash Flow | 2.42B | 471.84M | 450.89M | 379.52M | 350.26M | 344.64M |
| Investing Cash Flow | -712.46M | -869.27M | -81.91M | -274.27M | -55.27M | -26.77M |
| Financing Cash Flow | 575.25M | 778.07M | -333.72M | -439.63M | -605.62M | -269.20M |
Indra Sistemas Technical Analysis
Positive
30.36
Price Trends
30.64
Positive
30.10
Positive
30.09
Positive
Market Momentum
1.65
Negative
75.31
Negative
99.22
Negative
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 30.36 is below the 20-day moving average (MA) of 31.18, below the 50-day MA of 30.64, and above the 200-day MA of 30.09, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 75.31 is Negative, neither overbought nor oversold. The STOCH value of 99.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISMAY.
Indra Sistemas Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.96B | 10.66 | 22.91% | 2.29% | 6.47% | 10.82% | |
77 Outperform | $5.14B | 21.34 | 28.49% | ― | 13.63% | 9.52% | |
76 Outperform | $11.54B | 22.63 | 25.11% | 0.56% | 32.90% | 24.16% | |
75 Outperform | $11.00B | 20.42 | 12.68% | ― | 9.58% | 14.11% | |
67 Neutral | $5.51B | 15.08 | 11.19% | ― | 14.21% | -2.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $2.99B | 15.84 | 16.40% | ― | 0.23% | -20.13% |
* Technology Sector Average
ISMAY
Indra Sistemas
36.49
16.43
81.89%
CACI
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644.43
165.79
34.64%
EPAM
Epam Systems
97.43
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-35.82%
EXLS
Exlservice Holdings
34.89
-7.17
-17.05%
G
Genpact
34.29
-8.18
-19.25%
KD
Kyndryl Holdings Incorporation
14.02
-15.10
-51.85%
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.