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Indra Sistemas (ISMAY)
OTHER OTC:ISMAY
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Indra Sistemas
(OTC:ISMAY)
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Rating:71Outperform
Price Target:
$38.00
▲(13.98% Upside)
The score is driven primarily by solid financial performance (strong ROE and improved profitability, though pressured gross margin and weaker FCF) and a positive earnings-call outlook (backlog/orders and profit growth with defense-driven momentum). Technicals support the uptrend, but overbought readings temper the near-term view, while valuation is restrained by a relatively high P/E despite the provided dividend yield.
Positive Factors
Strategic Defense Initiatives
Indra's focus on defense, supported by significant contracts, strengthens its market position and ensures long-term revenue growth in a stable sector.
International Expansion
Investments in key markets enhance production capabilities and global reach, supporting sustained growth and competitive positioning.
Revenue and Profit Growth
Consistent revenue and profit growth reflect strong operational performance and effective strategic execution, bolstering financial stability.
Negative Factors
Cash Flow Challenges
Declining cash flow growth could limit the company's ability to invest in new projects and manage financial obligations, impacting long-term growth.
Working Capital Management
Increased days of sales outstanding indicates potential inefficiencies in cash conversion, which could strain liquidity and operational flexibility.
Net Debt Increase
Rising net debt levels may increase financial risk and constrain future investment capacity, affecting long-term strategic initiatives.
Indra Sistemas (ISMAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.36B
Dividend Yield0.53%
Average Volume (3M)245.00
Price to Earnings (P/E)26.7
Beta (1Y)0.14
Revenue Growth8.96%
EPS Growth61.02%
CountryUS
Employees60,598
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.26
Shares Outstanding353,308,000
10 Day Avg. Volume482
30 Day Avg. Volume245
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.56
Price to Sales (P/S)0.15
P/FCF Ratio2.13
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit6.14
Enterprise Value/Ebitda13.28
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 DescriptionIndra 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 MoneyIndra Sistemas generates revenue primarily through the provision of technology services and solutions to businesses and governments. Its revenue model is diversified across several key streams, including software licensing, project-based consulting services, and long-term contracts for system integration. The company also benefits from recurring revenue through maintenance contracts and support services. Significant partnerships with various public and private sector organizations enhance Indra's earnings potential, as well as its involvement in large-scale infrastructure projects and digital transformation initiatives across different industries.
Indra Sistemas Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
Indra demonstrated strong performance in revenue, profitability, and strategic defense initiatives. However, challenges in cash flow, working capital, and certain division margins were noted. The sentiment is balanced with significant achievements and a few noteworthy challenges.Q3-2025 Updates
Positive Updates
Backlog and Intake Growth
Backlog grew by 35% and order intake by 20% compared to the first 9 months of 2024, driven by the consolidation of TESS and new contracts.
Revenue and Profit Growth
Revenues grew by 6%, EBITDA and EBIT rose by 10%, and operating profit increased by 11% in absolute terms. Net profit reached EUR 291 million, an increase of 85% compared to the first 9 months of 2024.
Strategic Achievements in Defense
Indra received EUR 7.8 billion from 30 special modernization programs and aims to participate in 29 out of 31 programs, solidifying its position in defense.
International Expansion and Investments
Indra plans to invest over EUR 150 million in Spain and EUR 100 million in the United States to expand production and delivery capabilities.
IndraMind and Technological Advances
The launch and expansion of IndraMind, an AI-powered platform, aims to enhance decision-making for civil and military applications.
Shareholder Value and Market Capitalization
Indra's share price appreciated by more than 190%, and market capitalization reached around EUR 9 billion.
Negative Updates
Decrease in Free Cash Flow
Free cash flow generation was EUR 57 million, slightly less than 2024, due to preparation for increasing investment in defense.
Working Capital Challenges
Days of sales outstanding increased to plus 21 days, compared to plus 6 days at the end of September 2024, affected by TESS consolidation.
Net Debt Impact
Net debt stood at approximately EUR 140 million, compared with a net cash position of around EUR 86 million at the end of 2024, due to nonrecurring financial effects.
Mobility Division Margins
Margins in the Mobility division narrowed slightly, with EBITDA margin at 6% and EBIT margin also declining.
Company Guidance
During Indra's Q3 2025 earnings call, the company reported significant financial growth and strategic advancements. The backlog increased by 35% and order intake by 20% compared to the first nine months of 2024, driven by the consolidation of TESS and the Special Modernization Programs (PEMs). Revenues rose by 6%, with EBITDA and EBIT both up by 10%. Net profit surged to EUR 291 million, an 85% increase year-over-year. Indra's defense backlog is anticipated to exceed EUR 10 billion by 2026, bolstered by a EUR 7.8 billion award from 30 special modernization programs. The company also highlighted its strategic focus on aerospace and defense, with plans to invest over EUR 150 million in Spain and EUR 100 million in the U.S. for production expansion. Additionally, Indra aims to invest 8-10% of annual revenue in R&D&I throughout 2025. These efforts are part of Indra's "Leading the Future" strategy, positioning the company as a European leader in defense with aspirations to reach EUR 10 billion in revenue before 2030.Indra Sistemas Financial Statement Overview
Summary
Solid overall fundamentals supported by improved net profit margin (6.21% TTM) and strong ROE (28.67%) alongside better leverage (debt-to-equity 0.70). Offsetting factors include a notable drop in gross margin (to 23.72% TTM) and weaker free cash flow growth (-6.36% TTM), indicating cost and cash-generation pressure.Income Statement
Indra Sistemas has demonstrated consistent revenue growth, with a TTM growth rate of 1.66%. The gross profit margin has decreased from 34.72% in 2024 to 23.72% in TTM, indicating potential cost pressures. However, the net profit margin has improved slightly to 6.21% in TTM. EBIT and EBITDA margins remain stable, reflecting operational efficiency.75
Positive
Balance Sheet
The company has improved its debt-to-equity ratio to 0.70 in TTM, indicating better leverage management compared to previous years. Return on equity has increased to 28.67%, showcasing strong profitability. However, the equity ratio remains moderate, suggesting a balanced capital structure.70
Positive
Cash Flow
Free cash flow growth has declined by 6.36% in TTM, indicating potential challenges in cash generation. The operating cash flow to net income ratio of 0.23 suggests adequate cash conversion, while the free cash flow to net income ratio of 0.78 reflects reasonable cash flow management.65
Positive
| 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 | 837.53M |
| EBITDA | 667.71M | 545.28M | 455.06M | 388.86M | 340.79M | 75.44M |
| Net Income | 447.93M | 277.54M | 205.75M | 171.90M | 143.37M | -65.15M |
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 | 1.04B | 1.24B | 1.58B | 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 | -24.06M |
| Financing Cash Flow | -207.90M | -333.72M | -439.63M | -605.62M | -269.20M | 172.12M |
Indra Sistemas Technical Analysis
Neutral
33.34
Price Trends
29.72
Positive
27.25
Positive
23.41
Positive
Market Momentum
0.70
Positive
52.96
Neutral
54.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISMAY, the sentiment is Neutral. The current price of 33.34 is above the 20-day moving average (MA) of 32.82, above the 50-day MA of 29.72, and above the 200-day MA of 23.41, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.21B | 26.94 | 25.96% | ― | 14.43% | 29.86% | |
78 Outperform | $7.60B | 14.21 | 22.32% | 1.41% | 7.40% | -14.45% | |
74 Outperform | $13.71B | 26.22 | 13.18% | ― | 12.61% | 11.85% | |
73 Outperform | $11.52B | 32.11 | 10.21% | ― | 14.26% | -15.49% | |
71 Outperform | $11.36B | 26.71 | 28.45% | 0.53% | 8.96% | 61.02% | |
64 Neutral | $5.26B | 13.74 | 35.51% | ― | -1.90% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ISMAY
Indra Sistemas
31.96
23.25
266.89%
CACI
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612.37
226.01
58.50%
EPAM
Epam Systems
210.42
-44.59
-17.49%
EXLS
Exlservice Holdings
39.77
-10.89
-21.50%
G
Genpact
44.13
-4.50
-9.25%
KD
Kyndryl Holdings Incorporation
23.31
-16.61
-41.61%
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.