BME:IDR

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 43.1% below its fair value

Earnings are forecast to grow 12.07% per year

Earnings grew by 33.9% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months



Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Roper Technologies

NYSE:ROP

Share Price & News

How has Indra Sistemas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IDR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

IDR

6.1%

ES IT

1.1%

ES Market


1 Year Return

26.7%

IDR

20.3%

ES IT

7.6%

ES Market

Return vs Industry: IDR exceeded the Spanish IT industry which returned 21.5% over the past year.

Return vs Market: IDR exceeded the Spanish Market which returned 8.5% over the past year.


Shareholder returns

IDRIndustryMarket
7 Day5.3%6.1%1.1%
30 Day10.7%8.9%0.3%
90 Day32.7%18.9%3.5%
1 Year26.7%26.7%21.8%20.3%11.5%7.6%
3 Year6.8%6.8%80.9%73.0%15.8%4.7%
5 Year42.3%42.3%149.6%121.5%11.0%-7.6%

Price Volatility Vs. Market

How volatile is Indra Sistemas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

41.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IDR (€10.82) is trading below our estimate of fair value (€19.01)

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 (14.7x) compared to the IT industry average (21.1x).

PE vs Market: IDR is good value based on its PE Ratio (14.7x) compared to the Spanish market (17x).


Price to Earnings Growth Ratio

PEG Ratio: IDR is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: IDR is good value based on its PB Ratio (2.8x) compared to the ES IT industry average (2.8x).


Next Steps

Future Growth

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

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IDR's forecast earnings growth (12.1% per year) is above the savings rate (0.4%).

Earnings vs Market: IDR's earnings (12.1% per year) are forecast to grow faster than the Spanish market (9% per year).

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

Revenue vs Market: IDR's revenue (3.2% per year) is forecast to grow slower than the Spanish market (3.4% per year).

High Growth Revenue: IDR's revenue (3.2% 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 (17.6%).


Next Steps

Past Performance

How has Indra Sistemas performed over the past 5 years?

54.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IDR has high quality earnings.

Growing Profit Margin: IDR's current net profit margins (3.9%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: IDR has become profitable over the past 5 years, growing earnings by 54% per year.

Accelerating Growth: IDR's earnings growth over the past year (33.9%) is below its 5-year average (54% per year).

Earnings vs Industry: IDR earnings growth over the past year (33.9%) exceeded the IT industry 3%.


Return on Equity

High ROE: IDR's Return on Equity (18.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Indra Sistemas's financial position?


Financial Position Analysis

Short Term Liabilities: IDR's short term assets (€2.4B) exceed its short term liabilities (€1.7B).

Long Term Liabilities: IDR's short term assets (€2.4B) exceed its long term liabilities (€1.7B).


Debt to Equity History and Analysis

Debt Level: IDR's debt to equity ratio (180.9%) is considered high.

Reducing Debt: IDR's debt to equity ratio has increased from 87.8% to 180.9% over the past 5 years.

Debt Coverage: IDR's debt is not well covered by operating cash flow (7%).

Interest Coverage: IDR's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet

Inventory Level: IDR has a low level of unsold assets or inventory.

Debt Coverage by Assets: IDR's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

2.98%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%5.4%industryaverage1.6%forecastin3Years3.0%

Current dividend yield vs market & industry

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

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

Management

What is the CEO of Indra Sistemas's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Fernando Abril-Martorell Hernández (57yo)

5yrs

Tenure

€2,127,000

Compensation

Mr. Fernando Abril-Martorell Hernández served as the Chief Executive Officer of Indra Sistemas, S.A. Mr. Abril-Martorell Hernández served as Senior Adviser of Credit Suisse Group AG since March 2011. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Fernando's total compensation ($USD2.37M) is above average for companies of similar size in the Spanish market ($USD1.19M).

Compensation vs Earnings: Fernando's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: IDR's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

64yo

Average Age

Experienced Board: IDR's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: IDR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€10,38312 Nov 19
Antonio Cuevas Delgado
EntityIndividual
Shares1,131
Max Price€9.18
Buy€9,74012 Nov 19
Maria Rotondo Urcola
EntityIndividual
Shares1,061
Max Price€9.18
Buy€13,56812 Nov 19
Santos Martínez-Conde Gutiérrez-Barquín
EntityIndividual
Shares1,478
Max Price€9.18
Buy€8,37212 Nov 19
Ignacio Martín San Vicente
EntityIndividual
Shares912
Max Price€9.18
Buy€8,43612 Nov 19
Silvia Iranzo Gutiérrez
EntityIndividual
Shares919
Max Price€9.18
Buy€13,23812 Nov 19
Enrique de Leyva Pérez
EntityIndividual
Shares1,442
Max Price€9.18
Buy€6,49012 Nov 19
Cristina Ruíz Ortega
EntityIndividual
Role
Member of the Board of Directors
Senior VP of IT & Executive Director
Shares707
Max Price€9.18
Buy€6,48112 Nov 19
Ignacio Mataix Entero
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Transport & Defence Business and Executive Director
Shares706
Max Price€9.18
Buy€12,59512 Nov 19
Fernando Abril-Martorell Hernández
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,372
Max Price€9.18
Buy€9,67612 Nov 19
Isabel Torremocha Ferrezuelo
EntityIndividual
Shares1,054
Max Price€9.18
Buy€11,36512 Nov 19
Alberto Miguel Terol Esteban
EntityIndividual
Role
Vice Chairman
Vice Chairman & Lead Independent Director
Shares1,238
Max Price€9.18
Buy€9,67612 Nov 19
Miguel Sebastián Gascón
EntityIndividual
Shares1,054
Max Price€9.18
Buy€11,62212 Nov 19
Ignacio Santillana del Barrio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,266
Max Price€9.18
Buy€71,25019 Aug 19
Ignacio Mataix Entero
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Transport & Defence Business and Executive Director
Shares10,000
Max Price€7.25
Buy€152,10806 Aug 19
Ignacio Mataix Entero
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Transport & Defence Business and Executive Director
Shares20,000
Max Price€7.70
Buy€12,16131 Jul 19
Enrique de Leyva Pérez
EntityIndividual
Shares1,446
Max Price€8.41
Buy€11,34531 Jul 19
Alberto Miguel Terol Esteban
EntityIndividual
Role
Vice Chairman
Vice Chairman & Lead Independent Director
Shares1,349
Max Price€8.41
Buy€9,66331 Jul 19
Miguel Sebastián Gascón
EntityIndividual
Shares1,149
Max Price€8.41
Buy€12,69931 Jul 19
Ignacio Santillana del Barrio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,510
Max Price€8.41
Buy€6,48431 Jul 19
Cristina Ruíz Ortega
EntityIndividual
Role
Member of the Board of Directors
Senior VP of IT & Executive Director
Shares771
Max Price€8.41
Buy€9,72231 Jul 19
Maria Rotondo Urcola
EntityIndividual
Shares1,156
Max Price€8.41
Buy€6,48431 Jul 19
Ignacio Mataix Entero
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Transport & Defence Business and Executive Director
Shares771
Max Price€8.41
Buy€3,17131 Jul 19
Isabel Torremocha Ferrezuelo
EntityIndividual
Shares377
Max Price€8.41
Buy€13,56531 Jul 19
Santos Martínez-Conde Gutiérrez-Barquín
EntityIndividual
Shares1,613
Max Price€8.41
Buy€8,36831 Jul 19
Ignacio Martín San Vicente
EntityIndividual
Shares995
Max Price€8.41
Buy€8,42731 Jul 19
Silvia Iranzo Gutiérrez
EntityIndividual
Shares1,002
Max Price€8.41
Buy€10,37831 Jul 19
Antonio Cuevas Delgado
EntityIndividual
Shares1,234
Max Price€8.41
Buy€12,59031 Jul 19
Fernando Abril-Martorell Hernández
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,497
Max Price€8.41
Buy€5,56916 May 19
Ignacio Martín San Vicente
EntityIndividual
Shares553
Max Price€10.07
Buy€6,43516 May 19
Miguel Sebastián Gascón
EntityIndividual
Shares639
Max Price€10.07
Buy€4,32016 May 19
Cristina Ruíz Ortega
EntityIndividual
Role
Member of the Board of Directors
Senior VP of IT & Executive Director
Shares429
Max Price€10.07
Buy€6,49516 May 19
Maria Rotondo Urcola
EntityIndividual
Shares645
Max Price€10.07
Buy€4,33016 May 19
Ignacio Mataix Entero
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Transport & Defence Business and Executive Director
Shares430
Max Price€10.07
Buy€9,02316 May 19
Santos Martínez-Conde Gutiérrez-Barquín
EntityIndividual
Shares896
Max Price€10.07
Buy€7,57316 May 19
Alberto Miguel Terol Esteban
EntityIndividual
Role
Vice Chairman
Vice Chairman & Lead Independent Director
Shares752
Max Price€10.07
Buy€8,80116 May 19
Ignacio Santillana del Barrio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares874
Max Price€10.07
Buy€7,72416 May 19
Luis Lada Díaz
EntityIndividual
Shares767
Max Price€10.07
Buy€5,62916 May 19
Silvia Iranzo Gutiérrez
EntityIndividual
Shares559
Max Price€10.07
Buy€7,72416 May 19
Enrique de Leyva Pérez
EntityIndividual
Shares767
Max Price€10.07
Buy€6,92816 May 19
Antonio Cuevas Delgado
EntityIndividual
Shares688
Max Price€10.07
Buy€8,37816 May 19
Fernando Abril-Martorell Hernández
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares832
Max Price€10.07
Buy€36,81929 Mar 19
Cristina Ruíz Ortega
EntityIndividual
Role
Member of the Board of Directors
Senior VP of IT & Executive Director
Shares3,788
Max Price€9.87
Buy€136,13629 Mar 19
Fernando Abril-Martorell Hernández
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares14,037
Max Price€9.87
Buy€16,79906 Mar 19
Fernando Abril-Martorell Hernández
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,702
Max Price€9.87
Buy€3,44506 Mar 19
Antonio Cuevas Delgado
EntityIndividual
Shares349
Max Price€9.87
Buy€3,16806 Mar 19
Miguel Sebastián Gascón
EntityIndividual
Shares321
Max Price€9.87
Buy€17,67706 Mar 19
Ignacio Santillana del Barrio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,791
Max Price€9.87
Buy€8,64606 Mar 19
Cristina Ruíz Ortega
EntityIndividual
Role
Member of the Board of Directors
Senior VP of IT & Executive Director
Shares876
Max Price€9.87
Buy€12,96906 Mar 19
Maria Rotondo Urcola
EntityIndividual
Shares1,314
Max Price€9.87
Buy€18,10206 Mar 19
Santos Martínez-Conde Gutiérrez-Barquín
EntityIndividual
Shares1,834
Max Price€9.87
Buy€11,24206 Mar 19
Silvia Iranzo Gutiérrez
EntityIndividual
Shares1,139
Max Price€9.87
Buy€8,64606 Mar 19
Ignacio Mataix Entero
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Transport & Defence Business and Executive Director
Shares876
Max Price€9.87
Buy€15,14106 Mar 19
Alberto Miguel Terol Esteban
EntityIndividual
Role
Vice Chairman
Vice Chairman & Lead Independent Director
Shares1,534
Max Price€9.87
Buy€11,17306 Mar 19
Ignacio Martín San Vicente
EntityIndividual
Shares1,132
Max Price€9.87
Buy€15,51606 Mar 19
Luis Lada Díaz
EntityIndividual
Shares1,572
Max Price€9.87
Buy€15,50606 Mar 19
Enrique de Leyva Pérez
EntityIndividual
Shares1,571
Max Price€9.87
Buy€28,24601 Mar 19
Cristina Ruíz Ortega
EntityIndividual
Role
Member of the Board of Directors
Senior VP of IT & Executive Director
Shares2,912
Max Price€9.70
Buy€119,65001 Mar 19
Fernando Abril-Martorell Hernández
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares12,335
Max Price€9.70

Ownership Breakdown

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


Management Team

  • Antonio Mora Morando

    Head of Control

    • Tenure: 5yrs
  • Fernando Abril-Martorell Hernández (57yo)

    Chairman & CEO

    • Tenure: 5yrs
    • Compensation: €2.13m
  • Rafael Gallego Carbonell (65yo)

    Head of Air Traffic Control Europe

    • Tenure: 15yrs
  • Carlos González Soria (53yo)

    SVP of Legal Affairs

    • Ignacio Mataix Entero (57yo)

      Senior VP of Transport & Defence Business and Executive Director

      • Tenure: 2yrs
    • Javier Lázaro Rodríguez

      Chief Financial Officer

      • Tenure: 4.2yrs
    • Ezequiel Nieto Baquera

      Head of Investor Relations

      • José Cabello Chacón

        Head of Human Resources

        • Cristina Ruíz Ortega (49yo)

          Senior VP of IT & Executive Director

          • Tenure: 2.1yrs
          • Compensation: €1.48m
        • Luis Abril Mazuelas

          Head of Energy


          Board Members

          • Alberto Miguel Terol Esteban (64yo)

            Vice Chairman & Lead Independent Director

            • Tenure: 2yrs
            • Compensation: €140.00k
          • Fernando Abril-Martorell Hernández (57yo)

            Chairman & CEO

            • Tenure: 5yrs
            • Compensation: €2.13m
          • Fernando Fernandez-Tapias (80yo)

            Member of the Advisory Board

            • Julian García Vargas (74yo)

              Member of the Advisory Board

              • Sergio Ángel Serrano Sánchez (70yo)

                Member of the Advisory Board

                • Ignacio Mataix Entero (57yo)

                  Senior VP of Transport & Defence Business and Executive Director

                  • Tenure: 2yrs
                • Santiago de Torres

                  Member of the Advisory Board

                  • Emilio Saracho Rodríguez de Torres (64yo)

                    Member of the Advisory Board

                    • Ignacio Santillana del Barrio (71yo)

                      Independent Director

                      • Tenure: 8.6yrs
                      • Compensation: €164.00k
                    • Cristina Ruíz Ortega (49yo)

                      Senior VP of IT & Executive Director

                      • Tenure: 2.1yrs
                      • Compensation: €1.48m

                    Company Information

                    Indra Sistemas, S.A.'s company bio, employee growth, exchange listings and data sources


                    Key Information

                    • Name: Indra Sistemas, S.A.
                    • Ticker: IDR
                    • Exchange: BME
                    • Founded: 1921
                    • Industry: IT Consulting and Other Services
                    • Sector: Software
                    • Market Cap: €1.968b
                    • Shares outstanding: 176.31m
                    • Website: https://www.indracompany.com

                    Number of Employees


                    Location

                    • Indra Sistemas, S.A.
                    • Avenida de Bruselas, 35
                    • Alcobendas
                    • Madrid
                    • 28108
                    • Spain

                    Listings

                    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                    ISMA.FOTCPK (Pink Sheets LLC)YesSeries A Ordinary SharesUSUSDJan 1992
                    IDRBME (Bolsas y Mercados Espanoles)YesSeries A Ordinary SharesESEURJan 1992
                    IDADB (Deutsche Boerse AG)YesSeries A Ordinary SharesDEEURJan 1992
                    0HA9LSE (London Stock Exchange)YesSeries A Ordinary SharesGBEURJan 1992
                    IDREBATS-CHIXE (BATS 'Chi-X Europe')YesSeries A Ordinary SharesGBEURJan 1992
                    IDRWBAG (Wiener Boerse AG)YesSeries A Ordinary SharesATEURJan 1992
                    ISMA.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

                    Biography

                    Indra Sistemas, S.A. operates as a technology and consulting company worldwide. The company designs, develops, produces, integrates, and maintains 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, manufactures, develops, 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, the company offers systems to aid navigation and landing, and air traffic control systems; manages and 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 transport and energy distribution network manufacture services; engineering, construction, water, industry, and civilian engineering and consulting services; 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, the company researches and develops autonomous air systems and solutions in unmanned systems; and develops and produces aircraft, tactical telecommunication systems, and toll and traffic control and management systems. Indra Sistemas, S.A. was founded in 1921 and is headquartered in Alcobendas, Spain. 


                    Company Analysis and Financial Data Status

                    All financial data provided by Standard & Poor's Capital IQ.
                    DataLast Updated (UTC time)
                    Company Analysis2020/01/20 20:46
                    End of Day Share Price2020/01/20 00:00
                    Earnings2019/09/30
                    Annual Earnings2018/12/31


                    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.