Indra A
🇪🇸 IDR.MC · Madrid · ES0118594417
Technology
EUR 49.34 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
19.9
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 49.34 ÷ 2.48 = 19.9
TTM period through: 2025-12-31
Forward P/E (estimated): 19.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 19.9
Yield (Fwd)
0.61%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 0.62%
Net Debt/EBITDA (TTM)
4.0x
Latest quarter: 3.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 3.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
12.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 10.1%
Cash Flow Payout (TTM): 8.9%
FCF Coverage (TTM): 10.18x
ROE
26.6%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
14.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Indra is a prominent Spanish technology and defense systems provider experiencing strong operational momentum but facing recent governance instability. However, its technology sector classification, minimal 0.62% dividend yield, and elevated Net Debt/EBITDA of 4.03x make it fundamentally unsuitable for a conservative dividend income portfolio. Not recommended for new positions, as better opportunities exist in more stable, essential service businesses.
Sector Context
Indra is a multinational technology and consulting company that provides IT services, defense systems, and transport solutions. For dividend investors, the technology and defense sectors typically present rapid obsolescence risks and unpredictable cash flows compared to essential services, making them a poor fit for conservative income strategies.
📊 Strategy Analysis
- • Revenue and earnings have demonstrated consistent growth over the past decade, achieving a strong ROE of 26.55%.
- • Current free cash flow of €591 million easily covers the minimal dividend obligations with a low cash flow payout of 8.94%.
⚠ What to Watch
- • Technology sector classification represents a fundamental strategy mismatch due to rapid technological obsolescence risks, while the 0.62% yield completely misses the >3% minimum.
- • Valuation remains elevated with a P/E of 19.89, exceeding our preferred 8-15x range and offering limited margin of safety.
- • Net Debt/EBITDA has expanded to 4.03x, which exceeds our 4.0x red flag threshold and signals elevated leverage amidst recent governance instability.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.