Indra Sistemas (ISMAY) AI Stock Analysis

• Market Cap: $7.95B
• Dividend Yield: 0.75%
• Average Volume (3M): 88.00
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.04
• Revenue Growth: 8.32%
• EPS Growth: 65.87%
• Country: US
• Employees: 60,598
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.50
• Shares Outstanding: 353,308,000
• 10 Day Avg. Volume: 255
• 30 Day Avg. Volume: 88
• PEG Ratio: 0.14
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 4.26
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 11.74
• 1Y Price Target: $21.50
• Price Target Upside: -7.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: $21.50 ▼(-7.41% Downside)

Indra Sistemas demonstrates strong financial performance with improvements in profitability and leverage management. However, challenges in cash flow generation and bearish technical indicators slightly offset these strengths. The valuation is fair, with a reasonable P/E ratio and modest dividend yield.

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 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 Financial Statement Overview

Summary

Indra Sistemas shows strong revenue growth and profitability improvements, particularly in net profit margins and return on equity. The balance sheet reflects improved leverage, although cash flow generation has faced recent challenges. Overall, the company demonstrates a solid financial position with areas for improvement in cost management and cash flow growth.

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.

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.

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.

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	-223.30M	-333.72M	-439.63M	-605.62M	-269.20M	172.12M

Indra Sistemas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 23.22 is above the 20-day moving average (MA) of 21.37, above the 50-day MA of 20.69, and above the 200-day MA of 16.29, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 67.35 is Neutral, neither overbought nor oversold. The STOCH value of 70.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISMAY.

Indra Sistemas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXLS	77 Outperform	$6.87B	29.31	24.70%	―	15.15%	34.33%
G	76 Outperform	$7.16B	13.64	21.86%	1.63%	7.37%	-14.64%
CACI	70 Outperform	$11.63B	23.54	13.49%	―	12.64%	19.79%
EPAM	68 Neutral	$8.49B	21.75	11.36%	―	9.73%	-0.29%
ISMAY	65 Neutral	$7.95B	19.29	28.45%	0.75%	8.32%	65.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KD	61 Neutral	$7.08B	24.44	26.55%	―	-3.44%	―