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Indra Sistemas
(OTC:ISMAY)
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Rating:72Outperform
Price Target:
$39.00
▲(10.89% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by solid financial performance (growth plus strong cash generation) and a constructive earnings-call outlook (reaffirmed guidance and record backlog). Technicals are supportive but not strongly oversold, while valuation is a modest headwind due to a higher P/E and low dividend yield.
Positive Factors
Broad-based financial growth
Strong growth across revenue, EBITDA, EBIT and net income indicates broad operating momentum rather than isolated top-line expansion. If sustained, improving scale and profitability should strengthen internal funding capacity and support continued investment in Indra’s technology, defense and infrastructure businesses.
Negative Factors
Elevated balance-sheet leverage
Reported net cash overstates underlying balance-sheet strength because large PEM prepayments are tied to future program execution. Adjusted net debt and 0.5x leverage leave less flexibility than headline liquidity suggests, increasing sensitivity to execution, investment needs and refinancing conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based financial growth
Strong growth across revenue, EBITDA, EBIT and net income indicates broad operating momentum rather than isolated top-line expansion. If sustained, improving scale and profitability should strengthen internal funding capacity and support continued investment in Indra’s technology, defense and infrastructure businesses.
Read all positive factors
Indra Sistemas (ISMAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.61B
Dividend Yield0.47%
Average Volume (3M)309.00
Price to Earnings (P/E)25.4
Beta (1Y)0.52
Revenue Growth32.90%
EPS Growth24.16%
CountryUS
Employees62,396
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.52
Shares Outstanding353,308,000
10 Day Avg. Volume0
30 Day Avg. Volume309
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)2.46
Price to Sales (P/S)0.82
P/FCF Ratio9.95
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit11.09
Enterprise Value/Ebitda12.25
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Indra Sistemas Business Overview & Revenue Model
Company Description
Indra Sistemas, S.A. is a global technology and consulting firm. The company's operations span the complete lifecycle of technology solutions, from their design, development, and production to integration, ongoing operation, maintenance, repair, a...
How the Company Makes Money
Indra makes money mainly by selling and operating technology and engineering solutions under customer contracts, with revenue typically recognized from (a) project-based delivery (systems integration and deployment) and (b) recurring service provi...
Indra Sistemas Earnings Call Summary
Earnings Call Date:Oct 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with broad-based double-digit growth, record backlog and order intake, substantial defense and space momentum, improved profitability, strong reported liquidity and reaffirmed full-year guidance. The main challenges were the normalization of cash flow as PEM prepayments are deployed, defense margin dilution from TESS and program mix, slower Minsait organic growth, and limited disclosure on future space investment returns.Positive Updates
Strong Nine-Month Financial Growth
Indra reported double-digit growth across all key financial metrics in the first nine months of 2026, in line with its 2026 targets. Revenue increased 29% year-on-year to EUR 4.6 billion, EBITDA rose 62%, EBIT increased 42%, and net income grew 22% to $355 million.
Negative Updates
Reported Free Cash Flow Benefits From PEM Prepayments
The EUR 1.7 billion reported free cash flow mainly reflected EUR 1.8 billion of net prepayments received under special modernization programs. Management said these funds will be progressively deployed as programs move into execution and reported free cash flow will normalize accordingly.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Nine-Month Financial Growth
Indra reported double-digit growth across all key financial metrics in the first nine months of 2026, in line with its 2026 targets. Revenue increased 29% year-on-year to EUR 4.6 billion, EBITDA rose 62%, EBIT increased 42%, and net income grew 22% to $355 million.
Read all positive updates
Company Guidance
For 2026, Indra reaffirmed guidance of EUR 7 billion revenues and EUR 200 million EBIT, with full year free cash flow of more than EUR 375 million, excluding the impact of PEM related prepayments; defense revenues are expected to increase around 80%, ex-space, with around EUR 600 million from PEMs, more than EUR 400 million from TESS, defense EBIT margin around 18% to 19%, and clearly exceeding guidance of 90 units for 2026; space revenue is expected to finish above EUR 400 million, ATM is expected to deliver double-digit growth with EBIT around 12% and 15%, Minsait revenues are expected to grow low single digits with EBIT similar than last year at around 6.6%, and mobility revenues are expected to grow around mid-single digit with EBIT around 5%; for the EUR 1.9 billion IRIS2 revenues, around 70% is expected to be recognized by the end of 2030 and 30% from 2031 to 2035, while commercialization-related CapEx is expected to be between EUR 500 million and EUR 540 million, with less than EUR 100 million until 2030 and the bulk from 2031 onwards, and the truck support vehicle project is expected to be released before the year-end.Indra Sistemas Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.19B | 5.24B | 4.84B | 4.34B | 3.85B | 3.39B |
| Gross Profit | 951.30M | 1.24B | 1.68B | 1.08B | 1.29B | 1.04B |
| EBITDA | 861.22M | 567.81M | 545.28M | 455.06M | 388.86M | 340.79M |
| Net Income | 440.09M | 418.63M | 277.54M | 205.75M | 171.90M | 143.37M |
Balance Sheet | ||||||
| Total Assets | 11.75B | 9.35B | 4.96B | 4.72B | 4.54B | 4.54B |
| Cash, Cash Equivalents and Short-Term Investments | 2.88B | 975.78M | 556.58M | 656.29M | 974.10M | 1.26B |
| Total Debt | 2.26B | 1.75B | 850.87M | 1.04B | 1.24B | 1.58B |
| Total Liabilities | 9.51B | 7.23B | 3.64B | 3.59B | 3.53B | 3.69B |
| Stockholders Equity | 1.94B | 1.73B | 1.30B | 1.12B | 987.01M | 820.17M |
Cash Flow | ||||||
| Free Cash Flow | 2.18B | 429.50M | 339.89M | 316.81M | 296.14M | 295.48M |
| Operating Cash Flow | 2.42B | 471.84M | 450.89M | 379.52M | 350.26M | 344.64M |
| Investing Cash Flow | -712.46M | -869.27M | -81.91M | -274.27M | -55.27M | -26.77M |
| Financing Cash Flow | 575.25M | 778.07M | -333.72M | -439.63M | -605.62M | -269.20M |
Indra Sistemas Technical Analysis
Positive
35.17
Price Trends
34.72
Positive
33.12
Positive
32.04
Positive
Market Momentum
0.32
Negative
55.01
Neutral
80.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISMAY, the sentiment is Positive. The current price of 35.17 is above the 20-day moving average (MA) of 34.60, above the 50-day MA of 34.72, and above the 200-day MA of 32.04, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 80.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISMAY.
Indra Sistemas Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $17.94B | 13.23 | 27.55% | 1.20% | 3.41% | 1.68% | |
72 Outperform | $12.61B | 25.45 | 25.11% | 0.47% | 32.90% | 24.16% | |
72 Outperform | $15.01B | 27.57 | 12.37% | ― | 10.12% | 7.58% | |
71 Outperform | $6.36B | 17.60 | 25.89% | 0.97% | -0.78% | 3.90% | |
66 Neutral | $5.35B | 36.73 | 5.58% | ― | -2.67% | -61.86% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.39B | 21.10 | 3.67% | 5.60% | -2.81% | -67.00% |
* Technology Sector Average
ISMAY
Indra Sistemas
35.66
6.63
22.86%
CACI
Caci International
675.62
111.48
19.76%
SAIC
Science Applications
151.86
61.66
68.36%
LDOS
Leidos Holdings
142.98
-47.86
-25.08%
DXC
DXC Technology
14.98
1.71
12.89%
PSN
Parsons
50.69
-29.05
-36.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.