INDRA SISTEMAS SA (IDA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:IDA - ES0118594417 - Common Stock
54.85 EUR
+0.4 (+0.73%)
We assign a fundamental rating of 6 out of 10 to IDA. IDA was compared to 70 industry peers in the IT Services industry. While IDA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IDA is valued quite expensively, but it does show have an excellent growth rating. With these ratings, IDA could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- IDA had positive earnings in the past year.
- IDA had a positive operating cash flow in the past year.
- Of the past 5 years IDA 4 years were profitable.
- IDA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- IDA has a better Return On Assets (7.54%) than 77.63% of its industry peers.
- IDA has a Return On Equity of 33.98%. This is amongst the best in the industry. IDA outperforms 92.11% of its industry peers.
- With a decent Return On Invested Capital value of 12.32%, IDA is doing good in the industry, outperforming 77.63% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for IDA is significantly below the industry average of 26.75%.
- The last Return On Invested Capital (12.32%) for IDA is above the 3 year average (10.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.54% | ||
| ROE | 33.98% | ||
| ROIC | 12.32% |
ROA(3y)4.58%
ROA(5y)3.09%
ROE(3y)19.07%
ROE(5y)12.98%
ROIC(3y)10.5%
ROIC(5y)7.86%
1.3 Margins
- IDA has a Profit Margin of 6.66%. This is in the better half of the industry: IDA outperforms 75.00% of its industry peers.
- IDA's Profit Margin has improved in the last couple of years.
- IDA has a Operating Margin of 8.96%. This is in the better half of the industry: IDA outperforms 69.74% of its industry peers.
- In the last couple of years the Operating Margin of IDA has grown nicely.
- IDA has a better Gross Margin (76.64%) than 69.74% of its industry peers.
- IDA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.96% | ||
| PM (TTM) | 6.66% | ||
| GM | 76.64% |
OM growth 3Y8.16%
OM growth 5Y5.42%
PM growth 3Y10.64%
PM growth 5Y8.62%
GM growth 3Y1.53%
GM growth 5Y0.11%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IDA is destroying value.
- IDA has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for IDA has been reduced compared to 5 years ago.
- The debt/assets ratio for IDA has been reduced compared to a year ago.
2.2 Solvency
- IDA has an Altman-Z score of 3.03. This indicates that IDA is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.03, IDA is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
- The Debt to FCF ratio of IDA is 2.93, which is a good value as it means it would take IDA, 2.93 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.93, IDA is doing good in the industry, outperforming 60.53% of the companies in the same industry.
- A Debt/Equity ratio of 0.46 indicates that IDA is not too dependend on debt financing.
- IDA has a Debt to Equity ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.93 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.87
WACC14.12%
2.3 Liquidity
- IDA has a Current Ratio of 1.36. This is a normal value and indicates that IDA is financially healthy and should not expect problems in meeting its short term obligations.
- IDA has a Current ratio (1.36) which is in line with its industry peers.
- IDA has a Quick Ratio of 1.36. This is a bad value and indicates that IDA is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.83, IDA is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- IDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.51%, which is quite impressive.
- IDA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.79% yearly.
- The Revenue has been growing slightly by 7.62% in the past year.
- Measured over the past years, IDA shows a quite strong growth in Revenue. The Revenue has been growing by 8.62% on average per year.
EPS 1Y (TTM)57.51%
EPS 3Y24.74%
EPS 5Y19.79%
EPS Q2Q%10%
Revenue 1Y (TTM)7.62%
Revenue growth 3Y12.65%
Revenue growth 5Y8.62%
Sales Q2Q%5.91%
3.2 Future
- IDA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.31% yearly.
- Based on estimates for the next years, IDA will show a quite strong growth in Revenue. The Revenue will grow by 13.67% on average per year.
EPS Next Y31.96%
EPS Next 2Y21.85%
EPS Next 3Y20.57%
EPS Next 5Y14.31%
Revenue Next Year10.85%
Revenue Next 2Y14.34%
Revenue Next 3Y12.5%
Revenue Next 5Y13.67%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.16, the valuation of IDA can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as IDA.
- IDA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 23.47 indicates a rather expensive valuation of IDA.
- The rest of the industry has a similar Price/Forward Earnings ratio as IDA.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, IDA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.16 | ||
| Fwd PE | 23.47 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IDA is valued a bit more expensive than 65.79% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, IDA is valued a bit more expensive than the industry average as 67.11% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.64 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
- IDA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- IDA has a very decent profitability rating, which may justify a higher PE ratio.
- IDA's earnings are expected to grow with 20.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)1.27
EPS Next 2Y21.85%
EPS Next 3Y20.57%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.37%, IDA is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.27, IDA has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, IDA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
- The dividend of IDA decreases each year by -5.83%.
Dividend Growth(5Y)-5.83%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- IDA pays out 9.03% of its income as dividend. This is a sustainable payout ratio.
DP9.03%
EPS Next 2Y21.85%
EPS Next 3Y20.57%
INDRA SISTEMAS SA / IDA.DE FAQ
What is the fundamental rating for IDA stock?
ChartMill assigns a fundamental rating of 6 / 10 to IDA.DE.
Can you provide the valuation status for INDRA SISTEMAS SA?
ChartMill assigns a valuation rating of 3 / 10 to INDRA SISTEMAS SA (IDA.DE). This can be considered as Overvalued.
How profitable is INDRA SISTEMAS SA (IDA.DE) stock?
INDRA SISTEMAS SA (IDA.DE) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for IDA stock?
The Price/Earnings (PE) ratio for INDRA SISTEMAS SA (IDA.DE) is 25.16 and the Price/Book (PB) ratio is 6.74.
What is the earnings growth outlook for INDRA SISTEMAS SA?
The Earnings per Share (EPS) of INDRA SISTEMAS SA (IDA.DE) is expected to grow by 31.96% in the next year.