Indra Sistemas (BME:IDR) - Share price, News & Analysis

IDR fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	4/6
Financial Health	3/6
Dividends	0/6

IDR Overview

Indra Sistemas, S.A. operates as a technology and consulting company worldwide.

Rewards

Trading at 40.8% below our estimate of its fair value

Earnings are forecast to grow 16.55% per year

Earnings grew by 403.5% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Volatile share price over the past 3 months

Large one-off items impacting financial results

Indra Sistemas Competitors

Accenture

NYSE:ACN

US$214.7b

Siemens

XTRA:SIE

€118.2b

International Business Machines

NYSE:IBM

US$123.2b

Airbus

ENXTPA:AIR

€90.7b

Price History & Performance

Summary of all time highs, changes and price drops for Indra Sistemas
Historical stock prices
Current Share Price	€9.45
52 Week High	€5.03
52 Week Low	€9.50
Beta	1.31
1 Month Change	7.20%
3 Month Change	23.85%
1 Year Change	57.63%
3 Year Change	-4.40%
5 Year Change	-20.82%
Change since IPO	4.82%

Shareholder Returns

	IDR	ES IT	ES Market
7D	1.3%	7.0%	1.0%
1Y	57.6%	27.1%	27.8%

Return vs Industry: IDR exceeded the Spanish IT industry which returned 27.1% over the past year.

Return vs Market: IDR exceeded the Spanish Market which returned 27.8% over the past year.

Price Volatility

Is IDR's price volatile compared to industry and market?
IDR volatility
IDR Beta	1.31
Industry Beta	1.48
Market Beta	1

Stable Share Price: IDR is more volatile than 75% of Spanish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IDR's weekly volatility (5%) has been stable over the past year, but is still higher than 75% of Spanish stocks.

About the Company

Founded	Employees	CEO	Website
1921	49,744	Cristina Ruiz Ortega	https://www.indracompany.com

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.

Indra Sistemas Fundamentals Summary

How do Indra Sistemas's earnings and revenue compare to its market cap?
IDR fundamental statistics
Market Cap	€1.66b
Earnings (TTM)	€64.76m
Revenue (TTM)	€3.22b

25.7x

P/E Ratio

0.5x

P/S Ratio

Is IDR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IDR income statement (TTM)
Revenue	€3.22b
Cost of Revenue	€2.67b
Gross Profit	€554.60m
Expenses	€489.84m
Earnings	€64.76m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.37
Gross Margin	17.20%
Net Profit Margin	2.01%
Debt/Equity Ratio	198.3%

How did IDR perform over the long term?

See historical performance and comparison

Valuation

Is Indra Sistemas undervalued compared to its fair value and its price relative to the market?

40.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: IDR (€9.45) is trading below our estimate of fair value (€15.96)

Significantly Below Fair Value: IDR is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: IDR is good value based on its PE Ratio (25.7x) compared to the European IT industry average (28.5x).

PE vs Market: IDR is poor value based on its PE Ratio (25.7x) compared to the Spanish market (23.2x).

Price to Earnings Growth Ratio

PEG Ratio: IDR is poor value based on its PEG Ratio (1.6x)

Price to Book Ratio

PB vs Industry: IDR is good value based on its PB Ratio (2.3x) compared to the ES IT industry average (3.9x).

Future Growth

How is Indra Sistemas forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

16.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IDR's forecast earnings growth (16.6% per year) is above the savings rate (1%).

Earnings vs Market: IDR's earnings (16.6% per year) are forecast to grow faster than the Spanish market (16.5% per year).

High Growth Earnings: IDR's earnings are forecast to grow, but not significantly.

Revenue vs Market: IDR's revenue (3.7% per year) is forecast to grow slower than the Spanish market (6.1% per year).

High Growth Revenue: IDR's revenue (3.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: IDR's Return on Equity is forecast to be low in 3 years time (17.3%).

Past Performance

How has Indra Sistemas performed over the past 5 years?

2.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IDR has a large one-off gain of €34.3M impacting its June 30 2021 financial results.

Growing Profit Margin: IDR's current net profit margins (2%) are higher than last year (0.4%).

Past Earnings Growth Analysis

Earnings Trend: IDR has become profitable over the past 5 years, growing earnings by 2.5% per year.

Accelerating Growth: IDR's earnings growth over the past year (403.5%) exceeds its 5-year average (2.5% per year).

Earnings vs Industry: IDR earnings growth over the past year (403.5%) exceeded the IT industry 22.3%.

Return on Equity

High ROE: IDR's Return on Equity (9.7%) is considered low.

Financial Health

How is Indra Sistemas's financial position?

Financial Position Analysis

Short Term Liabilities: IDR's short term assets (€2.5B) exceed its short term liabilities (€2.1B).

Long Term Liabilities: IDR's short term assets (€2.5B) exceed its long term liabilities (€1.5B).

Debt to Equity History and Analysis

Debt Level: IDR's debt to equity ratio (198.3%) is considered high.

Reducing Debt: IDR's debt to equity ratio has reduced from 309.1% to 198.3% over the past 5 years.

Debt Coverage: IDR's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: IDR's interest payments on its debt are not well covered by EBIT (3x coverage).

Balance Sheet

Dividend

What is Indra Sistemas's current dividend yield, its reliability and sustainability?

2.09%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate IDR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IDR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IDR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IDR's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: IDR is not paying a notable dividend for the Spanish market.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IDR's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure

CEO

Cristina Ruiz Ortega (51 yo)

0.33

Tenure

€2,471,000

Compensation

Ms. Cristina Ruiz Ortega serves as the Chief Executive Officer at Indra Sistemas, S.A. since May 2021. Ms. Cristina serves as an Executive Director of Indra Sistemas, S.A. since December 21, 2017 and was i...

CEO Compensation Analysis

Compensation vs Market: Cristina Ruiz's total compensation ($USD2.89M) is about average for companies of similar size in the Spanish market ($USD2.23M).

Compensation vs Earnings: Cristina Ruiz's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: IDR's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: IDR's board of directors are considered experienced (3.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2021/09/26 17:48
End of Day Share Price	2021/09/24 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data