Indra Sistemas (ISMAY) AI Stock Analysis

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Indra Sistemas

(OTC:ISMAY)

Rating:78Outperform

Price Target:

$22.50

▲(7.71%Upside)

Indra Sistemas exhibits strong financial performance with impressive revenue growth and profitability. The stock shows significant technical strength, suggesting continued positive momentum. While the valuation is moderate, the overall financial health and market momentum make it a promising investment.

Indra Sistemas (ISMAY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.94B

Dividend Yield0.74%

Average Volume (3M)49.00

Price to Earnings (P/E)23.4

Beta (1Y)0.10

Revenue Growth6.52%

EPS Growth21.56%

CountryUS

Employees60,598

SectorTechnology

Sector Strength81

IndustryInformation Technology Services

Share Statistics

EPS (TTM)0.18

Shares Outstanding353,308,000

10 Day Avg. Volume0

30 Day Avg. Volume49

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)0.93

Price to Sales (P/S)0.00

P/FCF Ratio3.09

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Indra Sistemas Business Overview & Revenue Model

Company DescriptionIndra Sistemas (ISMAY) is a leading global technology and consulting company based in Spain, operating across multiple sectors including defense, transportation, energy, telecommunications, and financial services. The company provides high-value technological solutions and services, such as IT systems, consultancy, and managed services, to both public and private sector organizations. Indra is recognized for its expertise in innovative technologies and its commitment to enhancing the operational efficiency and competitiveness of its clients.

How the Company Makes MoneyIndra Sistemas makes money through a diversified revenue model based on the sale of technology solutions and consulting services. The company's key revenue streams include contracts with government agencies for defense and security solutions, as well as contracts with private sector clients for IT and business consulting services. Indra also generates income from long-term managed service agreements, where it provides ongoing IT infrastructure support and system maintenance. Additionally, the company benefits from strategic partnerships and alliances that expand its market reach and technological capabilities, enhancing its ability to secure large-scale projects across various industries.

Indra Sistemas Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q4-2024)

% Change Since: 24.42%|

Next Earnings Date:Jul 23, 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 presents a solid financial performance, marked by consistent revenue growth and strong profitability margins. The balance sheet is stable with manageable leverage, though attention to debt levels is advised. Cash flow generation is impressive, supporting future growth initiatives.

Income Statement

Positive

Indra Sistemas has shown a positive revenue growth trend, with a significant increase in total revenue from the previous year. The gross profit margin is strong, reflecting effective cost management. The company also exhibits a solid net profit margin, indicating good profitability. EBIT and EBITDA margins have improved, suggesting enhanced operational efficiency. However, the fluctuations in gross profit over the years indicate potential volatility.

Balance Sheet

Positive

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio, indicating manageable leverage. The return on equity has steadily improved, showcasing effective utilization of shareholder funds. The equity ratio indicates a stable asset base, but there's a slight concern regarding the fluctuation in total debt levels over the years, which may pose potential risks if not managed well.

Cash Flow

Very Positive

The company has demonstrated robust cash flow management, with consistent growth in free cash flow. The operating cash flow to net income ratio is strong, indicating effective cash generation from operations. The free cash flow to net income ratio is also favorable, highlighting prudent capital expenditure management. Overall, the company displays strong cash flow health, which bodes well for future investments and debt servicing.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.84B	4.34B	3.85B	3.39B	3.04B
	Gross Profit
1.68B	1.08B	1.29B	1.04B	924.22M
	EBIT
438.26M	346.99M	300.45M	255.53M	15.31M
	EBITDA
545.28M	455.06M	420.04M	354.83M	90.07M
	Net Income Common Stockholders
277.54M	205.75M	171.90M	143.37M	-57.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
556.58M	656.29M	974.10M	1.26B	1.19B
	Total Assets
4.96B	4.72B	4.54B	4.54B	4.46B
	Total Debt
850.87M	1.04B	1.24B	1.72B	1.94B
	Net Debt
295.73M	440.80M	306.25M	488.02M	750.62M
	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	-60.96M
	Financing Cash Flow
-333.72M	-439.63M	-605.62M	-269.20M	209.02M

Indra Sistemas Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price20.89

Price Trends

50DMA

17.90

Positive

100DMA

14.92

Positive

200DMA

11.99

Positive

Market Momentum

MACD

0.73

Positive

RSI

51.42

Neutral

STOCH

58.60

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 20.89 is above the 20-day moving average (MA) of 20.33, above the 50-day MA of 17.90, and above the 200-day MA of 11.99, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 58.60 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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISMAY	78 Outperform	$6.94B	23.44	21.89%	0.74%	6.52%	21.56%
CACI	75 Outperform	$10.00B	21.40	13.48%	―	14.16%	22.25%
EPAM	75 Outperform	$9.35B	22.80	11.57%	―	4.72%	-3.06%
G	75 Outperform	$7.11B	13.83	22.21%	1.67%	7.31%	-15.86%
DLB	71 Outperform	$7.05B	27.75	10.28%	1.80%	4.03%	34.45%
SAIC	68 Neutral	$4.91B	14.66	21.63%	1.41%	3.39%	-16.78%
Sector *	62 Neutral	$11.89B	9.95	-7.22%	4.98%	7.31%	-8.91%

* Technology Sector Average

Performance Comparison

ISMAY

Indra Sistemas

19.68

8.88

82.22%

CACI

Caci International

453.57

19.69

4.54%

DLB

Dolby Laboratories

72.28

-6.54

-8.30%

EPAM

Epam Systems

163.06

-20.03

-10.94%

Genpact

40.65

9.09

28.80%

SAIC

Science Applications

103.65

-12.01

-10.38%

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.