Indra Sistemas, S.A.
Indra Sistemas, S.A. Fundamental Analysis
Indra Sistemas, S.A. (ISMAY) shows strong financial fundamentals with a PE ratio of 12.22, profit margin of 7.99%, and ROE of 28.84%. The company generates $5.5B in annual revenue with strong year-over-year growth of 11.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ISMAY's fundamental strength across five key dimensions:
Efficiency Score
WeakISMAY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentISMAY trades at attractive valuation levels.
Growth Score
ExcellentISMAY delivers strong and consistent growth momentum.
Financial Health Score
ModerateISMAY shows balanced financial health with some risks.
Profitability Score
ModerateISMAY maintains healthy but balanced margins.
Key Financial Metrics
Is ISMAY Expensive or Cheap?
P/E Ratio
ISMAY trades at 12.22 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ISMAY's PEG of -0.64 indicates potential undervaluation.
Price to Book
The market values Indra Sistemas, S.A. at 3.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.30 times EBITDA. This is generally considered low.
How Well Does ISMAY Make Money?
Net Profit Margin
For every $100 in sales, Indra Sistemas, S.A. keeps $7.99 as profit after all expenses.
Operating Margin
Core operations generate 9.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.84 in profit for every $100 of shareholder equity.
ROA
Indra Sistemas, S.A. generates $4.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Indra Sistemas, S.A. generates strong operating cash flow of $1.40B, reflecting robust business health.
Free Cash Flow
Indra Sistemas, S.A. generates strong free cash flow of $1.19B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.77 in free cash annually.
FCF Yield
ISMAY converts 22.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How ISMAY Stacks Against Its Sector Peers
| Metric | ISMAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.22 | 34.43 | Better (Cheaper) |
| ROE | 28.84% | 1135.00% | Weak |
| Net Margin | 7.99% | -134808.00% (disorted) | Weak |
| Debt/Equity | 1.01 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 1.24 | 5.77 | Neutral |
| ROA | 4.64% | -310795.00% (disorted) | Weak |
ISMAY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Indra Sistemas, S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.76%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
129.60%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
202.80%
Industry Style: Growth, Innovation, High Beta
High Growth