Shares in Indra Sistemas, S.A. do not show any sign of a slowdown in the ascending dynamic. Investors could bet on a continuation of the underlying trend.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● With a P/E ratio at 10.29 for the current year and 9.26 for next year, earnings multiples are highly attractive compared with competitors.
● The company shows low valuation levels, with an enterprise value at 0.53 times its sales.
● Given the positive cash flows generated by its business, the company's valuation level is an asset.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
Surperformance is Buy on INDRA SISTEMAS, S.A. since 2024-03-04
.
Indra Sistemas, S.A. is the Spanish leader in designing, developing, manufacturing and marketing of information technology, defense, and simulation systems. The group's activity is organized around 2 areas:
- sales of systems: IT systems (systems for air traffic control and management, electronic payment control, surveillance, identification, vote counting, on-line training platforms, etc.), electronic defense equipment (radar, observation satellites, communication systems, instrument panels, etc.), automatic simulation and maintenance systems (fighter pilot training, diagnosis, and error detection systems.), etc.;
- services: consulting, maintenance, project management, etc.
Net sales are distributed geographically as follows: Spain (49.6%), Italy (5.8%), Europe (11.2%), Brazil (5.5%), Americas (14.1%) and Asia-Middle East-Africa (13.8%).