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Inditex
(BME:ITX)
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Rating:82Outperform
Price Target:
€68.00
▲(24.86% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial performance (expanding margins, rising ROE, and conservative leverage) and supportive technical momentum (price above key moving averages with positive MACD). Offsetting factors are a premium valuation (P/E ~27.9) and watch-items in fundamentals: notably slower 2026 revenue growth and slightly weaker cash conversion versus net income.
Positive Factors
High and expanding margins
Sustained high gross margins and improving EBIT margin reflect durable merchandising strength, pricing power and supply-chain efficiency. This structural profitability supports reinvestment in stores and digital, funds shareholder returns, and creates a margin buffer vs. peers over the medium term.
Negative Factors
Decelerating revenue growth
A marked slowdown in top-line growth reduces the runway for operating leverage and sustainable margin expansion. If lower unit demand or market saturation persists, management may need to rely more on cost actions or price increases, limiting durable organic growth over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High and expanding margins
Sustained high gross margins and improving EBIT margin reflect durable merchandising strength, pricing power and supply-chain efficiency. This structural profitability supports reinvestment in stores and digital, funds shareholder returns, and creates a margin buffer vs. peers over the medium term.
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
55.43
Positive
53.21
Positive
52.90
Positive
Market Momentum
0.92
Negative
65.53
Neutral
90.90
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 55.60, below the 50-day MA of 55.43, and above the 200-day MA of 52.90, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 65.53 is Neutral, neither overbought nor oversold. The STOCH value of 90.90 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
58.80
17.63
42.81%
ES:ADZ
Adolfo Dominguez
6.00
1.08
21.95%
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.