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Inditex
(BME:ITX)
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Rating:71Outperform
Price Target:
€64.00
▲(17.52% Upside)
Action:Reiterated
Date:03/25/26
The score is driven primarily by strong underlying financial performance (high and improving margins, solid balance sheet, and robust cash generation), but it is meaningfully reduced by weak technical momentum (below key moving averages with negative MACD and oversold readings). Valuation is moderately supportive due to the dividend, but the P/E remains relatively high.
Positive Factors
High & improving margins
Consistently high gross margins and expanding EBIT/net margins reflect durable cost and merchandising advantages from Inditex’s vertically integrated model and scale. Improved margins enhance recurring earnings power, funding reinvestment and shareholder returns even if top-line growth softens.
Negative Factors
Revenue growth slowdown
A marked slowdown in top-line growth reduces the company’s ability to leverage fixed costs and may limit future margin expansion. Persistent softening would challenge management’s ability to sustain profit and return targets and heighten reliance on margin improvements for earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High & improving margins
Consistently high gross margins and expanding EBIT/net margins reflect durable cost and merchandising advantages from Inditex’s vertically integrated model and scale. Improved margins enhance recurring earnings power, funding reinvestment and shareholder returns even if top-line growth softens.
Read all positive factors
Inditex (ITX) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€175.67B
Dividend Yield2.4%
Average Volume (3M)2.45M
Price to Earnings (P/E)27.9
Beta (1Y)1.22
Revenue Growth4.09%
EPS Growth6.96%
CountryES
Employees67,195
SectorGeneral
Sector StrengthN/A
IndustryApparel - Retail
Share Statistics
EPS (TTM)2.02
Shares Outstanding3,116,652,000
10 Day Avg. Volume1,883,008
30 Day Avg. Volume2,451,537
Financial Highlights & Ratios
PEG Ratio4.31
Price to Book (P/B)8.40
Price to Sales (P/S)4.30
P/FCF Ratio24.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€60.85Price Target Upside11.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)2.19
Revenue Forecast (FY)€42.73B
Inditex Business Overview & Revenue Model
Company Description
Industria de Diseño Textil, S.A. (ITX) is a prominent entity primarily focused on the global retail and online sale of fashion apparel, footwear, accessories, and home textile products, which it distributes through a diverse array of retail concep...
How the Company Makes Money
Inditex makes money primarily by selling fashion products (apparel, footwear, accessories, and home products) to end customers through two main channels: (1) physical retail stores and (2) online sales via brand websites/apps. Revenue is recognize...
Inditex Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.34B | 39.86B | 38.63B | 35.95B | 32.57B | 27.72B |
| Gross Profit | 21.97B | 23.22B | 22.34B | 17.86B | 18.56B | 15.81B |
| EBITDA | 10.94B | 11.34B | 10.95B | 9.97B | 8.22B | 5.56B |
| Net Income | 6.29B | 6.22B | 5.87B | 5.38B | 4.13B | 3.24B |
Balance Sheet | ||||||
| Total Assets | 36.49B | 35.64B | 34.71B | 32.73B | 29.98B | 28.95B |
| Cash, Cash Equivalents and Short-Term Investments | 10.80B | 10.96B | 11.50B | 11.42B | 10.08B | 9.39B |
| Total Debt | 6.04B | 5.93B | 5.91B | 5.57B | 5.45B | 6.01B |
| Total Liabilities | 17.50B | 15.24B | 15.04B | 14.06B | 12.95B | 13.19B |
| Stockholders Equity | 18.99B | 20.40B | 19.68B | 18.64B | 17.01B | 15.73B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 7.04B | 7.08B | 7.27B | 5.65B | 6.09B |
| Operating Cash Flow | 0.00 | 9.23B | 9.29B | 8.67B | 6.67B | 6.75B |
| Investing Cash Flow | 0.00 | -3.21B | -3.29B | -1.71B | -3.50B | -3.25B |
| Financing Cash Flow | 0.00 | -7.08B | -6.61B | -5.47B | -4.61B | -3.91B |
Inditex Technical Analysis
Positive
54.46
Price Trends
55.33
Positive
53.13
Positive
52.85
Positive
Market Momentum
0.81
Negative
64.43
Neutral
91.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ITX, the sentiment is Positive. The current price of 54.46 is below the 20-day moving average (MA) of 55.43, below the 50-day MA of 55.33, and above the 200-day MA of 52.85, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 64.43 is Neutral, neither overbought nor oversold. The STOCH value of 91.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ITX.
Inditex Peers Comparison
UnderperformOutperform
Sector (55)
ES:ITX
Inditex
58.50
18.10
44.82%
ES:ADZ
Adolfo Dominguez
6.05
1.13
22.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.