OTCPK:ISMA.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very 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


Market Performance


7 Day Return

0%

ISMA.Y

-1.3%

US IT

0.4%

US Market


1 Year Return

-7.5%

ISMA.Y

21.8%

US IT

6.9%

US Market

Return vs Industry: ISMA.Y underperformed the US IT industry which returned 21.8% over the past year.

Return vs Market: ISMA.Y underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

ISMA.YIndustryMarket
7 Day0%-1.3%0.4%
30 Day4.4%-1.3%-1.1%
90 Day2.8%-4.2%-0.5%
1 Year-7.5%-7.5%23.0%21.8%9.3%6.9%
3 Year-26.1%-26.1%94.5%86.6%45.8%36.4%
5 Year-24.9%-24.9%149.1%126.3%62.9%45.1%

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

No news available

Valuation

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

43.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ISMA.Y ($4.65) is trading below our estimate of fair value ($8.17)

Significantly Undervalued: ISMA.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ISMA.Y is good value based on its PE Ratio (12.9x) compared to the IT industry average (36.9x).

PE vs Market: ISMA.Y is good value based on its PE Ratio (12.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: ISMA.Y is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ISMA.Y is good value based on its PB Ratio (2.2x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

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

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISMA.Y's forecast earnings growth (14.2% per year) is above the savings rate (2.7%).

Earnings vs Market: ISMA.Y's earnings (14.2% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: ISMA.Y's revenue (3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ISMA.Y's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ISMA.Y's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has Indra Sistemas performed over the past 5 years?

43.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ISMA.Y's earnings have grown significantly by 43.4% per year over the past 5 years.

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

Earnings vs Industry: ISMA.Y had negative earnings growth (-7.1%) over the past year, making it difficult to compare to the IT industry average (8.4%).


Return on Equity

High ROE: ISMA.Y's Return on Equity (16.9%) is considered low.


Return on Assets

ROA vs Industry: ISMA.Y's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: ISMA.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Indra Sistemas's financial position?


Financial Position Analysis

Short Term Liabilities: ISMA.Y's short term assets (€2.4B) exceeds its short term liabilities (€1.8B)

Long Term Liabilities: ISMA.Y's short term assets (2.4B) exceeds its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: ISMA.Y's debt to equity ratio (202.5%) is considered high

Reducing Debt: ISMA.Y's debt to equity ratio has increased from 83.5% to 202.5% over the past 5 years.

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

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


Balance Sheet

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

Debt Coverage by Assets: ISMA.Y's debt is covered by short term assets (assets are 1.633700x debt).


Next Steps

Dividend

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

3.01%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: ISMA.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

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

4.8yrs

Average management tenure


CEO

Fernando Abril-Martorell Hernández (57yo)

4.8yrs

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 ($USD2.37M) is about average for companies of similar size in the US market ($USD4.00M).

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


Management Age and Tenure

4.8yrs

Average Tenure

57yo

Average Age

Experienced Management: ISMA.Y's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

64yo

Average Age

Experienced Board: ISMA.Y's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Antonio Mora Morando

    Head of Control

    • Tenure: 4.8yrs
  • Fernando Abril-Martorell Hernández (57yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: €2.13m
  • Rafael Gallego Carbonell (65yo)

    Head of Air Traffic Control Europe

    • Tenure: 14.8yrs
  • Carlos González Soria (53yo)

    SVP of Legal Affairs

    • Tenure: 0yrs
  • Ignacio Mataix Entero (57yo)

    Senior VP of Transport & Defence Business and Executive Director

    • Tenure: 1.8yrs
  • Javier Lázaro Rodríguez

    Chief Financial Officer

    • Tenure: 3.9yrs
  • Ezequiel Nieto Baquera

    Head of Investor Relations

    • Tenure: 0yrs
  • José Cabello Chacón

    Head of Human Resources

    • Tenure: 0yrs
  • Cristina Ruíz Ortega (49yo)

    Senior VP of IT & Executive Director

    • Tenure: 1.8yrs
    • Compensation: €1.48m
  • Luis Abril Mazuelas

    Head of Energy

    • Tenure: 0yrs

Board Members

  • Alberto Miguel Terol Esteban (64yo)

    Vice Chairman & Lead Independent Director

    • Tenure: 1.8yrs
    • Compensation: €140.00k
  • Fernando Abril-Martorell Hernández (57yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: €2.13m
  • Fernando Fernandez-Tapias (80yo)

    Member of the Advisory Board

    • Tenure: 0yrs
  • Julian García Vargas (74yo)

    Member of the Advisory Board

    • Tenure: 0yrs
  • Sergio Ángel Serrano Sánchez (70yo)

    Member of the Advisory Board

    • Tenure: 0yrs
  • Ignacio Mataix Entero (57yo)

    Senior VP of Transport & Defence Business and Executive Director

    • Tenure: 1.8yrs
  • Santiago de Torres

    Member of the Advisory Board

    • Tenure: 0yrs
  • Emilio Saracho Rodríguez de Torres (64yo)

    Member of the Advisory Board

    • Tenure: 0yrs
  • Ignacio Santillana del Barrio (71yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: €164.00k
  • Cristina Ruíz Ortega (49yo)

    Senior VP of IT & Executive Director

    • Tenure: 1.8yrs
    • 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: ISMA.Y
  • Exchange: OTCPK
  • Founded: 1921
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €1.507b
  • Listing Market Cap: €1.679b
  • 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 infor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:16
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.