Inditex (ITX) AI Stock Analysis

• Market Cap: €143.20B
• Dividend Yield: 2.82%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.03
• Revenue Growth: 7.47%
• EPS Growth: 8.99%
• Country: ES
• Employees: 67,195
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Retail
• EPS (TTM): 1.88
• Shares Outstanding: 3,116,652,000
• 10 Day Avg. Volume: 3,285,253
• 30 Day Avg. Volume: 2,717,786
• PEG Ratio: 2.72
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €50.67
• Price Target Upside: 9.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Inditex's strong financial performance with high profitability and minimal leverage is the major strength, contributing significantly to the overall score. The technical analysis indicates a neutral to slightly bearish trend, while the valuation reflects a relatively high P/E ratio balanced by a good dividend yield. These factors together result in a solid overall stock score, suggesting that Inditex is a stable investment with potential for growth, albeit at a premium valuation.

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 Business Overview & Revenue Model

Company Description

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household textile products through various retail concepts. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.

How the Company Makes Money

Inditex 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

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

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

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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
38.63B	35.95B	32.57B	27.72B	20.40B
	Gross Profit
22.34B	17.86B	18.56B	15.81B	11.39B
	EBIT
7.55B	7.01B	5.52B	4.28B	1.51B
	EBITDA
11.10B	9.97B	8.22B	7.10B	4.24B
	Net Income Common Stockholders
5.87B	5.38B	4.13B	3.24B	1.11B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.50B	11.42B	10.08B	9.39B	7.57B
	Total Assets
34.71B	32.73B	29.98B	28.95B	26.42B
	Total Debt
7.13M	5.57B	5.60B	6.01B	6.35B
	Net Debt
-6.38B	-1.44B	35.00M	-1.01B	-1.05B
	Total Liabilities
15.04B	14.06B	12.95B	13.19B	11.87B
	Stockholders Equity
19.68B	18.64B	17.01B	15.73B	14.52B
Cash Flow		Free Cash Flow
6.62B	6.80B	5.26B	5.63B	2.31B
	Operating Cash Flow
9.29B	8.67B	6.67B	6.75B	3.02B
	Investing Cash Flow
-3.29B	-1.71B	-3.50B	-3.25B	2.51B
	Financing Cash Flow
-6.61B	-5.47B	-4.61B	-3.91B	-2.79B

Inditex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 46.24 is below the 20-day moving average (MA) of 46.37, below the 50-day MA of 46.73, and below the 200-day MA of 48.97, indicating a bearish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 19.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:ITX.

Inditex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITX	76 Outperform	€143.20B	24.43	30.61%	2.82%	7.47%	8.99%
Sector *	61 Neutral	$6.59B	11.77	3.06%	3.98%	2.56%	-20.85%

Inditex Corporate Events

Inditex Reports Robust Growth and Announces Dividend Increase

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.