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Inditex (ES:ITX)
BME:ITX

Inditex (ITX) AI Stock Analysis

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ES

Inditex

(BME:ITX)

Rating:76Outperform
Price Target:
€54.00
▲(14.41%Upside)
Inditex's overall stock score is strong, driven primarily by robust financial performance, including consistent revenue growth and high profitability. Technical analysis indicates moderate momentum, while valuation suggests potential overvaluation. The stock remains attractive but may face valuation pressures.
Positive Factors
Financial Performance
Inditex reported PBT of €1,926mn, indicating strong financial performance.
Operational Efficiency
Opex leverage improved EBIT margins by 61bps yoy to 19.5%, reflecting operational efficiency.
Sales Growth
Net sales increased by 7.3%, showing a positive trend in sales growth.
Negative Factors

Inditex (ITX) vs. iShares MSCI Spain ETF (EWP)

Inditex Business Overview & Revenue Model

Company DescriptionInditex (Industria de Diseño Textil S.A.) is one of the world's largest fashion retailers, headquartered in Arteixo, Spain. It operates in the textile and apparel industry, with a portfolio of brands that includes Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Uterqüe, and Zara Home. The company is renowned for its fast fashion model, which enables it to quickly respond to market trends and consumer demands with new designs and collections.
How the Company Makes MoneyInditex makes money primarily through the retail sale of clothing, footwear, and accessories for men, women, and children. Its key revenue stream is its extensive network of physical retail stores around the world, complemented by a growing online presence. The company benefits from its vertically integrated business model, which allows it to control most aspects of the supply chain from design and manufacturing to distribution and retail. This integration enables rapid production cycles and inventory management, critical to its fast fashion strategy. Inditex's revenue is bolstered by its ability to quickly adapt to fashion trends and consumer preferences, frequently releasing new collections to maintain customer interest and drive sales. Additionally, the company's global presence and diverse brand portfolio help mitigate market risks and capture a wide customer base across different regions and demographics.

Inditex Financial Statement Overview

Summary
Inditex exhibits strong financial health with consistent revenue growth, high profitability margins, and a robust balance sheet. The company maintains minimal leverage, ensuring financial stability and flexibility. Cash flow generation remains strong, supporting its growth initiatives and shareholder returns. Overall, Inditex is well-positioned in the retail industry with a solid financial foundation.
Income Statement
91
Very Positive
Inditex has shown robust growth with a consistent increase in total revenue over the years, reaching €38.63 billion in 2025. The gross profit margin for 2025 stands at 57.85%, reflecting effective cost management. The net profit margin is healthy at 15.18%, indicating strong profitability. Both EBIT and EBITDA margins are impressive at 19.56% and 28.74% respectively, highlighting operational efficiency. The revenue growth rate from 2024 to 2025 is 7.48%, showcasing steady growth in a competitive retail environment.
Balance Sheet
85
Very Positive
Inditex maintains a very low debt-to-equity ratio of 0.0004, indicating minimal leverage and a strong equity position. The return on equity (ROE) is robust at 29.82%, suggesting effective use of shareholders' funds to generate profits. The equity ratio is healthy at 56.67%, highlighting a strong balance sheet and financial stability.
Cash Flow
88
Very Positive
The free cash flow for 2025 is €6.62 billion, with a slight decrease from the previous year, reflecting strategic capital expenditures. The operating cash flow to net income ratio is 1.58, indicating strong cash generation relative to profit. The free cash flow to net income ratio is 1.13, showing that the company effectively converts its profits into cash.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
37.16B38.63B35.95B32.57B27.72B20.40B
Gross Profit
19.96B22.34B17.86B18.56B15.81B11.39B
EBIT
7.22B7.55B7.01B5.52B4.28B1.51B
EBITDA
10.36B11.10B9.97B8.22B7.10B4.24B
Net Income Common Stockholders
5.64B5.87B5.38B4.13B3.24B1.11B
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.00B11.50B11.42B10.08B9.39B7.57B
Total Assets
31.97B34.71B32.73B29.98B28.95B26.42B
Total Debt
5.64B7.13M5.57B5.60B6.01B6.35B
Net Debt
-885.00M-6.38B-1.44B35.00M-1.01B-1.05B
Total Liabilities
15.85B15.04B14.06B12.95B13.19B11.87B
Stockholders Equity
16.09B19.68B18.64B17.01B15.73B14.52B
Cash FlowFree Cash Flow
1.48B6.62B6.80B5.26B5.63B2.31B
Operating Cash Flow
1.48B9.29B8.67B6.67B6.75B3.02B
Investing Cash Flow
0.00-3.29B-1.71B-3.50B-3.25B2.51B
Financing Cash Flow
0.00-6.61B-5.47B-4.61B-3.91B-2.79B

Inditex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price47.20
Price Trends
50DMA
46.58
Positive
100DMA
48.22
Negative
200DMA
49.35
Negative
Market Momentum
MACD
0.08
Positive
RSI
48.90
Neutral
STOCH
51.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ITX, the sentiment is Negative. The current price of 47.2 is below the 20-day moving average (MA) of 47.53, above the 50-day MA of 46.58, and below the 200-day MA of 49.35, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 51.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:ITX.

Inditex Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ESITX
76
Outperform
€147.65B25.1930.61%2.75%7.47%8.99%
ESBKT
71
Outperform
€10.27B10.0417.81%3.80%8.08%18.75%
ESFDR
69
Neutral
€4.09B27.439.09%2.07%5.68%35.73%
NLMT
64
Neutral
€21.72B16.822.57%1.82%-8.59%68.13%
62
Neutral
$6.90B11.242.93%3.89%2.68%-24.71%
ESDOM
61
Neutral
$434.73M14.4413.57%3.11%-3.32%-28.99%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:ITX
Inditex
47.42
2.60
5.81%
NL:MT
ArcelorMittal
26.74
3.62
15.66%
ES:FDR
Fluidra
21.92
0.08
0.35%
ES:BKT
Bankinter
11.16
3.73
50.26%
ES:DOM
Global Dominion Access SA
3.12
-0.30
-8.75%

Inditex Corporate Events

Inditex Announces Strategic Management Reshuffle
May 16, 2025

Inditex has announced significant management changes, appointing Ignacio Fernández Fernández as General Corporate Director, overseeing Finance, Sustainability, Logistics, Transport, and Infrastructure. These changes reflect a strategic shift in leadership roles, with Andrés Sánchez Iglesias becoming Financial Director and Fernando de Bunes Ibarra taking over as Director of Sustainability. The company acknowledges the contributions of Javier Losada Montero, who is stepping down after 32 years, highlighting a continued focus on sustainability and operational efficiency.

The most recent analyst rating on (ES:ITX) stock is a Hold with a EUR47.00 price target. To see the full list of analyst forecasts on Inditex stock, see the ES:ITX Stock Forecast page.

Inditex Reports Robust Growth and Announces Dividend Increase
Mar 12, 2025

Inditex reported strong financial performance for the fiscal year 2024, with sales growing by 7.5% to 38,632 million euros and net profit increasing by 9.0% to 5,866 million euros. The company plans to propose a 9% dividend increase for fiscal year 2025 and is committed to profitable growth with significant investments in commercial space optimization and logistics expansion.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.