Indra Sistemas (ISMAY)
OTHER OTC:ISMAY
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Indra Sistemas
(OTC:ISMAY)
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Rating:64Neutral
Price Target:
$33.00
▼(-1.02% Downside)
Action:Downgraded
Date:03/28/26
The score is driven primarily by solid multi-year profitability and consistently positive cash generation, tempered by 2025 revenue contraction and higher balance-sheet leverage risk. Technicals are a meaningful drag given the downtrend and weak momentum, while valuation is a clear positive due to the low P/E.
Positive Factors
Consistent Cash Generation
Multi-year positive operating and free cash flow creates durable financial flexibility: it funds capex, supports bid funding for large public tenders, and cushions operations through cycles. This persistent cash conversion underpins long-term solvency and strategic reinvestment capacity.
Negative Factors
2025 Revenue Contraction
A sharp year-over-year revenue drop raises questions about tender wins, contract timing, or client demand. If persistent, it can erode backlog-driven visibility, reduce scale economies, and pressure margins and reinvestment plans, weakening growth durability over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Cash Generation
Multi-year positive operating and free cash flow creates durable financial flexibility: it funds capex, supports bid funding for large public tenders, and cushions operations through cycles. This persistent cash conversion underpins long-term solvency and strategic reinvestment capacity.
Read all positive factors
Indra Sistemas (ISMAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.54B
Dividend Yield0.53%
Average Volume (3M)245.00
Price to Earnings (P/E)13.8
Beta (1Y)0.38
Revenue Growth24.35%
EPS Growth77.45%
CountryUS
Employees60,598
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)3.26
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 Cap0.80
Enterprise Value/Revenue1.96
Enterprise Value/Gross Profit11.15
Enterprise Value/Ebitda14.41
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. 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, el...
How the Company Makes Money
Indra makes money primarily by delivering technology services and selling mission-critical systems under commercial contracts with governments and enterprises. A major portion of revenue comes from IT services work—such as consulting, application ...
Indra Sistemas Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 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.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.
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.
Read all updates
Q3-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
71
Positive
Balance Sheet
60
Neutral
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.24B | 4.84B | 4.34B | 3.85B | 3.39B |
| Gross Profit | 1.24B | 1.68B | 1.08B | 1.29B | 1.04B |
| EBITDA | 567.81M | 545.28M | 455.06M | 388.86M | 340.79M |
| Net Income | 418.63M | 277.54M | 205.75M | 171.90M | 143.37M |
Balance Sheet | |||||
| Total Assets | 9.35B | 4.96B | 4.72B | 4.54B | 4.54B |
| Cash, Cash Equivalents and Short-Term Investments | 975.78M | 556.58M | 656.29M | 974.10M | 1.26B |
| Total Debt | 1.75B | 850.87M | 1.04B | 1.24B | 1.58B |
| Total Liabilities | 7.23B | 3.64B | 3.59B | 3.53B | 3.69B |
| Stockholders Equity | 1.73B | 1.30B | 1.12B | 987.01M | 820.17M |
Cash Flow | |||||
| Free Cash Flow | 429.50M | 339.89M | 316.81M | 296.14M | 295.48M |
| Operating Cash Flow | 471.84M | 450.89M | 379.52M | 350.26M | 344.64M |
| Investing Cash Flow | -869.27M | -81.91M | -274.27M | -55.27M | -26.77M |
| Financing Cash Flow | 778.07M | -333.72M | -439.63M | -605.62M | -269.20M |
Indra Sistemas Technical Analysis
Positive
33.34
Price Trends
29.78
Positive
31.08
Negative
27.74
Positive
Market Momentum
-0.06
Negative
53.66
Neutral
91.18
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 33.34 is above the 20-day moving average (MA) of 29.69, above the 50-day MA of 29.78, and above the 200-day MA of 27.74, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.66 is Neutral, neither overbought nor oversold. The STOCH value of 91.18 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.47B | 17.71 | 27.16% | ― | 13.35% | 18.39% | |
71 Outperform | $5.42B | 10.72 | 22.44% | 1.41% | 6.47% | 10.82% | |
64 Neutral | $10.54B | 13.84 | 27.79% | 0.53% | 24.35% | 77.45% | |
64 Neutral | $10.83B | 23.00 | 13.15% | ― | 9.58% | 14.11% | |
63 Neutral | $5.45B | 22.07 | 10.67% | ― | 14.21% | -2.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $2.73B | 43.37 | 21.67% | ― | 0.23% | -20.13% |
* Technology Sector Average
ISMAY
Indra Sistemas
30.55
10.96
55.93%
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G
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31.91
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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.