BME:IDR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued with mediocre balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.7%

IDR

12.6%

ES IT

3.2%

ES Market


1 Year Return

-21.1%

IDR

-31.0%

ES IT

-23.6%

ES Market

Return vs Industry: IDR exceeded the Spanish IT industry which returned -38% over the past year.

Return vs Market: IDR exceeded the Spanish Market which returned -25.5% over the past year.


Shareholder returns

IDRIndustryMarket
7 Day4.7%12.6%3.2%
30 Day-18.7%-13.0%-13.1%
90 Day-24.1%-32.2%-25.2%
1 Year-21.1%-21.1%-30.2%-31.0%-20.8%-23.6%
3 Year-34.8%-34.8%4.5%0.6%-23.0%-30.4%
5 Year-29.8%-29.8%62.7%45.8%-25.8%-38.0%

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?

30.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IDR (€7.86) is trading below our estimate of fair value (€11.37)

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 (11.4x) compared to the IT industry average (13.8x).

PE vs Market: IDR is good value based on its PE Ratio (11.4x) compared to the Spanish market (14x).


Price to Earnings Growth Ratio

PEG Ratio: IDR is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: IDR is overvalued based on its PB Ratio (1.8x) compared to the ES IT industry average (1.6x).


Next Steps

Future Growth

How is Indra Sistemas forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IDR's forecast earnings growth (14.1% per year) is above the savings rate (0.4%).

Earnings vs Market: IDR's earnings (14.1% per year) are forecast to grow faster than the Spanish market (10.9% per year).

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

Revenue vs Market: IDR's revenue (2.6% per year) is forecast to grow slower than the Spanish market (3.9% per year).

High Growth Revenue: IDR's revenue (2.6% 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 (18.9%).


Next Steps

Past Performance

How has Indra Sistemas performed over the past 5 years?

64.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IDR has high quality earnings.

Growing Profit Margin: IDR's current net profit margins (3.7%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: IDR has become profitable over the past 5 years, growing earnings by 64.4% per year.

Accelerating Growth: IDR's earnings growth over the past year (1.3%) is below its 5-year average (64.4% per year).

Earnings vs Industry: IDR earnings growth over the past year (1.3%) underperformed the IT industry 11%.


Return on Equity

High ROE: IDR's Return on Equity (15.7%) 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 (€1.9B).

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 (175.6%) is considered high.

Reducing Debt: IDR's debt to equity ratio has increased from 99.7% to 175.6% over the past 5 years.

Debt Coverage: IDR's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: IDR's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Next Steps

Dividend

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

4.12%

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 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

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

5.3yrs

Average management tenure


CEO

Fernando Hernandez (57yo)

5.25s

Tenure

€2,127,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Fernando's total compensation ($USD2.30M) is above average for companies of similar size in the Spanish market ($USD1.05M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fernando Hernandez
President of the Board of Directors & CEO5.25yrs€2.13m0.21% 3.0m
Cristina Ruiz Ortega
Director-General of IT & Executive Director2.33yrs€1.48m0.032% 449.8k
Javier Lázaro Rodríguez
Chief Financial Officer4.42yrsno 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 Europe15.25yrsno datano data
Antonio Mora Morando
Head of Control5.25yrsno datano data
Ignacio Mataix Entero
Director-General of Transport & Defence Business and Executive Director2.25yrsno data0.022% 305.1k
Luis Abril Mazuelas
Head of Energyno datano datano data

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: IDR's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fernando Hernandez
President of the Board of Directors & CEO5.25yrs€2.13m0.21% 3.0m
Cristina Ruiz Ortega
Director-General of IT & Executive Director2.33yrs€1.48m0.032% 449.8k
Ignacio Mataix Entero
Director-General of Transport & Defence Business and Executive Director2.25yrsno data0.022% 305.1k
Alberto Miguel Terol Esteban
VP of the Board & Lead Independent Director2.25yrs€140.00k0.026% 359.2k
Fernando Fernandez-Tapias
Member of the Advisory Boardno datano datano data
Enrique de Leyva Perez
Independent Director5yrs€144.00k0.011% 158.5k
Julian García 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

2.3yrs

Average Tenure

64yo

Average Age

Experienced Board: IDR's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: IDR 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: €1.385b
  • Shares outstanding: 176.37m
  • 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 Analysis2020/04/07 20:47
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.