BME:IDR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.0%

IDR

-11.5%

ES IT

-3.8%

ES Market


1 Year Return

-25.2%

IDR

-30.7%

ES IT

-23.2%

ES Market

Return vs Industry: IDR exceeded the Spanish IT industry which returned -30.7% over the past year.

Return vs Market: IDR underperformed the Spanish Market which returned -23.2% over the past year.


Shareholder returns

IDRIndustryMarket
7 Day-10.0%-11.5%-3.8%
30 Day-3.2%-6.0%-4.8%
90 Day-14.9%-3.4%-4.9%
1 Year-25.2%-25.2%-30.2%-30.7%-20.7%-23.2%
3 Year-55.1%-55.1%-18.5%-21.0%-23.5%-30.6%
5 Year-36.4%-36.4%67.2%51.4%-11.8%-25.6%

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?

36.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IDR (€6) is trading below our estimate of fair value (€9.38)

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


Price To Earnings Ratio

PE vs Industry: IDR is poor value based on its PE Ratio (82.2x) compared to the ES IT industry average (60.9x).

PE vs Market: IDR is poor value based on its PE Ratio (82.2x) compared to the Spanish market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: IDR is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: IDR is good value based on its PB Ratio (1.6x) compared to the ES IT industry average (2.9x).


Next Steps

Future Growth

How is Indra Sistemas forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

56.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IDR's forecast earnings growth (56.9% per year) is above the savings rate (1.3%).

Earnings vs Market: IDR's earnings (56.9% per year) are forecast to grow faster than the Spanish market (31.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IDR's revenue (3.5% per year) is forecast to grow slower than the Spanish market (6.1% per year).

High Growth Revenue: IDR's revenue (3.5% 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 (15.8%).


Next Steps

Past Performance

How has Indra Sistemas performed over the past 5 years?

70.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IDR has a large one-off loss of €83.7M impacting its June 30 2020 financial results.

Growing Profit Margin: IDR's current net profit margins (0.4%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: IDR has become profitable over the past 5 years, growing earnings by 70.2% per year.

Accelerating Growth: IDR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IDR had negative earnings growth (-89%) over the past year, making it difficult to compare to the IT industry average (-57.2%).


Return on Equity

High ROE: IDR's Return on Equity (2.3%) is considered low.


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 (€1.8B).

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 (217.9%) is considered high.

Reducing Debt: IDR's debt to equity ratio has increased from 216.6% to 217.9% over the past 5 years.

Debt Coverage: IDR's debt is not well covered by operating cash flow (19.8%).

Interest Coverage: IDR's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.13%

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

Management

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

5.7yrs

Average management tenure


CEO

Fernando Hernandez (58 yo)

5.67yrs

Tenure

€2,290,000

Compensation

Mr. Fernando Abril-Martorell Hernandez serves as the Chief Executive Officer of Indra Sistemas, S.A. since January 2015. Mr. Hernandez served as Senior Adviser of Credit Suisse Group AG since March 2011. M ...


CEO Compensation Analysis

Compensation vs Market: Fernando's total compensation ($USD2.69M) is above average for companies of similar size in the Spanish market ($USD1.06M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fernando Hernandez
Chairman & CEO5.67yrs€2.29m0.21%
€ 2.3m
Cristina Ruiz Ortega
Director-General of IT & Executive Director2.75yrs€1.46m0.033%
€ 343.3k
Ignacio Mataix Entero
Director-General of Transport & Defense Business and Executive Director2.67yrs€1.71m0.022%
€ 232.8k
Javier Lázaro Rodríguez
Chief Financial Officer4.83yrsno datano data
Ezequiel Nieto Baquera
Head of Investor Relationsno datano datano data
Carlos González Soria
SVP of Legal Affairsno datano datano data
José Cabello Chacón
Head of Human Resourcesno datano datano data
Rafael Gallego Carbonell
Head of Air Traffic Control Europe15.67yrsno datano data
Antonio Mora Morando
Head of Control5.67yrsno datano data
Luis Abril Mazuelas
Head of Energyno datano datano data
Berta Barrero Vázquez
Head of Transportationno datano datano data
Manuel Escalante García
Head of Defense & Securityno datano datano data

5.7yrs

Average Tenure

58yo

Average Age

Experienced Management: IDR's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fernando Hernandez
Chairman & CEO5.67yrs€2.29m0.21%
€ 2.3m
Cristina Ruiz Ortega
Director-General of IT & Executive Director2.75yrs€1.46m0.033%
€ 343.3k
Ignacio Mataix Entero
Director-General of Transport & Defense Business and Executive Director2.67yrs€1.71m0.022%
€ 232.8k
Alberto Miguel Terol Esteban
VP of the Board & Lead Independent Director2.67yrs€140.00k0.026%
€ 275.4k
Fernando Fernandez-Tapias
Member of the Advisory Boardno datano datano data
Enrique de Leyva Perez
Independent Director5.42yrs€154.00k0.011%
€ 116.5k
Santos Gutierrez-Barquin
Proprietary Director7.25yrs€166.00k0.020%
€ 211.8k
Julian Garcia Vargas
Member of the Advisory Boardno datano datano data
Sergio Ángel Serrano Sánchez
Member of the Advisory Boardno datano datano data
Santiago de Torres
Member of the Advisory Boardno datano datano data
Emilio Saracho Rodríguez de Torres
Member of the Advisory Boardno datano datano data
Juan Costa
Member of the Advisory Boardno datano datano data

4.1yrs

Average Tenure

65yo

Average Age

Experienced Board: IDR's board of directors are considered experienced (4.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: €1.056b
  • Shares outstanding: 176.13m
  • 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, operates, maintains, repairs and markets systems, solutions, and service ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 03:53
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.