Inditex (ES:ITX)
BME:ITX
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Inditex
(BME:ITX)
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Rating:71Outperform
Price Target:
€62.00
▲(12.69% 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
Inditex's elevated gross margins (~57–58%) and rising EBIT/net margins reflect durable structural advantages from scale, brand strength and a short lead-time, vertically integrated supply chain. This margin profile supports resilient cash generation and sustainable reinvestment capacity.
Negative Factors
Revenue growth slowdown
A steep deceleration to ~2.4% revenue growth in 2026 is a durable red flag: slower top-line expansion reduces operating-leverage tailwinds, makes margin improvement harder to sustain, and increases dependence on cost initiatives or share gains to drive future profit growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High & improving margins
Inditex's elevated gross margins (~57–58%) and rising EBIT/net margins reflect durable structural advantages from scale, brand strength and a short lead-time, vertically integrated supply chain. This margin profile supports resilient cash generation and sustainable reinvestment capacity.
Read all positive factors
Inditex (ITX) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€175.85B
Dividend Yield2.29%
Average Volume (3M)2.45M
Price to Earnings (P/E)28.0
Beta (1Y)1.24
Revenue Growth4.09%
EPS Growth6.96%
CountryES
Employees67,195
SectorGeneral
Sector StrengthN/A
IndustryApparel - Retail
Share Statistics
EPS (TTM)2.00
Shares Outstanding3,116,652,000
10 Day Avg. Volume1,883,008
30 Day Avg. Volume2,451,537
Financial Highlights & Ratios
PEG Ratio4.32
Price to Book (P/B)8.40
Price to Sales (P/S)4.30
P/FCF Ratio26.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€60.12Price Target Upside9.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)2.19
Revenue Forecast (FY)€42.70B
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 and home products to end customers through its retail network and online platforms. Its core revenue stream is net sales from company-operated physical stores (including flagship and mall locations)...
Inditex Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
83
Very Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 39.86B | 38.63B | 35.95B | 27.72B | 20.40B |
| Gross Profit | 23.22B | 22.34B | 17.86B | 15.81B | 11.39B |
| EBITDA | 11.34B | 10.95B | 9.97B | 5.56B | 4.24B |
| Net Income | 6.22B | 5.87B | 5.38B | 3.24B | 1.11B |
Balance Sheet | |||||
| Total Assets | 35.64B | 34.71B | 32.73B | 28.95B | 26.42B |
| Cash, Cash Equivalents and Short-Term Investments | 10.96B | 11.50B | 11.42B | 9.39B | 7.57B |
| Total Debt | 5.93B | 5.91B | 5.57B | 6.01B | 6.35B |
| Total Liabilities | 15.24B | 15.04B | 14.06B | 13.19B | 11.87B |
| Stockholders Equity | 20.40B | 19.68B | 18.64B | 15.73B | 14.52B |
Cash Flow | |||||
| Free Cash Flow | 6.52B | 7.08B | 7.27B | 6.09B | 2.55B |
| Operating Cash Flow | 9.23B | 9.29B | 8.67B | 6.75B | 3.02B |
| Investing Cash Flow | -3.22B | -3.29B | -1.71B | -3.25B | 2.51B |
| Financing Cash Flow | -7.07B | -6.61B | -5.47B | -3.91B | -2.79B |
Inditex Technical Analysis
Positive
55.02
Price Trends
52.48
Positive
52.79
Positive
51.06
Positive
Market Momentum
1.33
Negative
66.03
Neutral
68.75
Neutral
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 55.02 is above the 20-day moving average (MA) of 54.19, above the 50-day MA of 52.48, and above the 200-day MA of 51.06, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 66.03 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 is Neutral, 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
56.50
13.49
31.36%
ES:ADZ
Adolfo Dominguez
5.70
0.98
20.76%
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.