What moat does Indra Sistemas have?

The advantage sits in the system already installed in a control centre or in a defence programme, where changing supplier is slow and political. It is not a patent on one product and not a toll. Minsait looks more like a race for the next contract. The moat narrows if the defence budget is cut or if the air-traffic operator opens the system to someone else.

How do you read the Indra Sistemas radar?

Health has to be read in cash and debt, not as if all of Indra were subscription software. Quality separates the defence and air-traffic margin, which is stickier, from consulting. Growth is the public budget and the project book, not a licence curve. P/E valuation mixes the two trades: do not average it with Amadeus. Shareholder return is the dividend, secondary if cash goes into the programme.

Which multiples matter for Indra Sistemas?

The P/E of a year with one large contract is not normal earnings. EV/EBITDA is read knowing which part is defence and which part is services. A consultancy margin is not the margin of a system already installed. Do not use Amadeus's multiple as if the product were the same. A dash means the IDR.MC cache is cold.

What does this Indra Sistemas analysis leave out?

Not advice on IDR.MC. Vaultflake does not model a defence budget or an air-traffic control centre. This is not a share of flights and not a SEPI percentage. Read the CNMV filings. A past dividend is not a right. The table is a snapshot, not a target price.

Indra Sistemas (IDR.MC) analysis

Indra Sistemas, S.A.

Sector:Technology · Defence and Air Traffic

Country:Spain

Profile and moat

Indra has two different trades. One is defence and air-traffic management systems: long contracts with states and with navigation operators. The other is information-technology services, through Minsait, closer to a consultancy that competes project by project. It is not Aena, which operates the airport, not IAG, which flies, and not Amadeus, which distributes the booking.

A defence or air-traffic contract is hard for a rival who is not already installed to take over. It is not a monopoly on every flight. A European combat programme can slip, be redesigned or lose budget. Indra is a Spanish participant, not the whole programme. SEPI is a shareholder. This report does not state its percentage.

The dividend comes from the cash the two businesses leave. The consulting one is more cyclical. This report does not state a calendar or a share of flights.

Indra Sistemas (IDR.MC) analysis

Indra Sistemas, S.A.

Sector:Technology · Defence and Air Traffic

Country:Spain

Profile and moat

The dividend comes from the cash the two businesses leave. The consulting one is more cyclical. This report does not state a calendar or a share of flights.

Indra Sistemas (IDR.MC) analysis

Profile and moat

Indra Sistemas (IDR.MC) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does Indra Sistemas have?

How do you read the Indra Sistemas radar?

Which multiples matter for Indra Sistemas?

What does this Indra Sistemas analysis leave out?

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