The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward 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.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● With a P/E ratio at 9.94 for the current year and 8.92 for next year, earnings multiples are highly attractive compared with competitors.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.49 for the 2022 fiscal year.
● 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.
● Sales forecast by analysts have been recently revised upwards.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
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Surperformance is Buy on INDRA SISTEMAS, S.A. since 2024-03-04
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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%).