Education
About Us
Working with TipRanks
Follow Us
Industria De Diseno Textil, S.A. Unsponsored Adr (IDEXY)
OTHER OTC:IDEXY
Top Page
Industria de Diseno Textil
(OTC:IDEXY)
Select Model
Select Model
Rating:74Outperform
Price Target:
$17.00
▲(3.09% Upside)
Action:ReiteratedDate:03/13/26
The score is driven primarily by strong fundamentals (high profitability, ROE, and solid cash generation) and a constructive earnings update with stable margin guidance and continued growth initiatives. Offsetting these strengths are weak technicals (below key moving averages with negative MACD) and a less supportive valuation due to a higher P/E, partially balanced by a ~4.1% dividend yield.
Positive Factors
High profitability and returns
Sustained high gross and net margins with a ~29% ROE indicate durable operating leverage and strong pricing/product economics. These margins support reinvestment, shareholder returns and resilience through cycles, underpinning long-term cash generation and strategic flexibility.
Strong cash generation and FCF conversion
Robust operating cash flow and high free cash flow conversion signal high earnings quality and internal funding capacity. Reliable FCF supports logistics investment, dividends and debt flexibility, reducing dependence on external financing for multi-year strategic initiatives.
Global diversification and logistics investment
Wide geographic reach coupled with a EUR 1.8bn logistics expansion strengthens distribution, inventory turns and omnichannel integration. Structural investment in supply chain raises competitive barriers and supports scalable growth across markets over the medium term.
Negative Factors
Cooling revenue growth
A trend of slowing top-line momentum, including a 2026 revenue decline, signals increased difficulty sustaining prior growth rates. Persistent cooling can pressure future margin expansion and limits the runway for reinvestment-driven top-line recovery over the next several quarters.
Significant currency headwinds
Material FX effects (c.350bps dragged; ~-4% full-year impact) create recurring volatility in reported sales and margins. Currency exposure can erode earnings predictability and force pricing or sourcing responses that compress margins over multi-quarter horizons.
Regulatory risk: potential EU duties change
Potential EU rules eliminating low-value parcel duty exemptions could structurally raise cross-border distribution costs. For a large global retailer with significant e-commerce flows, this regulatory shift could increase costs or complicate logistics economics over the medium term.
Industria de Diseno Textil (IDEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$182.85B
Dividend Yield3.76%
Average Volume (3M)837.71K
Price to Earnings (P/E)28.6
Beta (1Y)0.98
Revenue Growth6.10%
EPS Growth6.04%
CountryUS
Employees67,195
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.15
Shares Outstanding12,466,608,000
10 Day Avg. Volume1,317,649
30 Day Avg. Volume837,707
Financial Highlights & Ratios
PEG Ratio13.43
Price to Book (P/B)8.35
Price to Sales (P/S)4.46
P/FCF Ratio25.25
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue4.03
Enterprise Value/Gross Profit6.97
Enterprise Value/Ebitda14.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.63
Revenue Forecast (FY)$49.20B
Industria de Diseno Textil Business Overview & Revenue Model
Company DescriptionIndustria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household textile products through various commercial concepts. Its retail concepts include Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe. As of July 13, 2021, the company operated 6,829 stores in 96 markets; and online stores in 216 markets. It is also involved in textile manufacturing, design, financial services, real estate, logistics, insurance, and combined heat and power plant, and construction businesses. The company operates in Spain, rest of Europe, the Americas, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is based in Corunna, Spain.
Industria de Diseno Textil Earnings Call Summary
Earnings Call Date:Dec 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong sales growth and profit improvements despite currency headwinds. Inditex continues to expand globally and invest in logistics and technology, indicating confidence in future growth. The challenges posed by currency headwinds and potential EU legislation were acknowledged but do not overshadow the overall positive performance.Q3-2025 Updates
Positive Updates
Strong Sales Growth
Sales in constant currency increased by 6.2% in the first 9 months of 2025, with a 4.9% growth in Q3 despite currency headwinds. Store and online sales between November 1st and December 1st grew by 10.6%.
Profit and Margin Improvements
Profit before tax increased by 3.6% to EUR 6 billion, and net income grew by 3.9% to EUR 4.6 billion. Gross margin reached 59.7%, with operating leverage of 29 basis points over 9 months.
Global Expansion and Market Penetration
The company opened stores in 39 markets, including Bershka's entry into Denmark and Oysho's expansion in Europe. Inditex continues to operate in 214 markets with significant growth opportunities.
Diversification and Resilience
Inditex benefits from diversification across concepts, channels, geographies, and sourcing markets, contributing to its business model resilience.
Logistics and Technology Investments
The company is executing a 2-year logistics expansion plan with EUR 1.8 billion investment aimed at increasing capacities and efficiency. New security technology is also being rolled out across concepts.
Negative Updates
Currency Headwinds
Sales growth was impacted by about 350 basis points due to currency headwinds, with an expected minus 4% top line currency impact for the full year 2025.
Potential EU Legislation Impact
Concerns were raised about the EU's potential legislation to remove duties exemptions on low-value parcels, but Inditex stated it does not use the de minimis rules in its operations.
Company Guidance
In the Inditex 9-month 2025 results presentation, the company reported a robust financial performance despite currency headwinds, with sales in constant currency increasing by 6.2% and reaching EUR 28.2 billion. The gross profit rose by 3.2% to EUR 16.8 billion, while profit before tax grew 3.6% to EUR 6 billion, resulting in a net income increase of 3.9% to EUR 4.6 billion. The gross margin stood at 59.7%, and operating expenses were tightly controlled, reflecting a 29 basis point operating leverage. Inditex's net cash position was EUR 11.3 billion. The company reiterated a stable gross margin guidance for 2025, with an emphasis on reinvesting efficiencies to maintain competitive differentiation. The presentation highlighted strong store and online sales growth, with a 10.6% increase in constant currency sales from November 1 to December 1, 2025. Inditex also emphasized its diversification strategy across 214 markets, ongoing investments in logistics, and the expansion of its store network.Industria de Diseno Textil Financial Statement Overview
Summary
Strong profitability and returns (2026 gross margin ~50.1%, net margin ~15.6%, ROE ~29%) supported by robust operating and free cash flow. The main offset is cooling growth momentum, with revenue down ~1.6% in 2026 and some variability in leverage and free cash flow growth.Income Statement
Profitability is a clear strength: in 2026 (annual) the company generated ~50.1% gross margin and ~15.6% net margin, with operating profitability remaining strong (EBIT margin ~20.3%, EBITDA margin ~28.5%). Earnings have scaled materially versus earlier years (net income up meaningfully from 2021–2024), showing a solid post-2021 recovery. The key weakness is growth momentum: revenue declined in 2026 (about -1.6%) after modest growth in 2025 and stronger growth in 2022–2024, suggesting the top-line trajectory has cooled.86
Very Positive
Balance Sheet
The balance sheet looks generally healthy, supported by sizable equity and strong shareholder returns (return on equity ~29% in 2026, consistently strong in 2024–2025 as well). Leverage is typically moderate (debt-to-equity ~0.29 in 2026 and ~0.31 in 2024), which provides financial flexibility for a retailer. However, debt levels show some fluctuation across years (including a very low debt figure in 2025 versus more typical levels in other periods), which reduces consistency and makes leverage trends less straightforward to interpret from the provided data.78
Positive
Cash Flow
Cash generation is strong: 2026 operating cash flow (~8.9B) and free cash flow (~6.8B) are robust and broadly supportive of earnings quality. Free cash flow conversion is healthy (free cash flow is ~76% of net income in 2026, similar to prior years). The main watch-out is that cash flow does not fully cover reported earnings in the latest period (operating cash flow is ~87% of net income in 2026), and free cash flow growth has been uneven (down in 2025 after a strong 2024), indicating some variability in cash generation.84
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.92B | 38.31B | 38.63B | 35.95B | 32.57B | 27.72B |
| Gross Profit | 22.51B | 19.17B | 22.34B | 17.86B | 18.56B | 15.81B |
| EBITDA | 11.11B | 10.90B | 11.10B | 10.04B | 8.28B | 7.16B |
| Net Income | 5.89B | 5.98B | 5.87B | 5.38B | 4.13B | 3.24B |
Balance Sheet | ||||||
| Total Assets | 34.05B | 35.74B | 34.71B | 32.73B | 29.98B | 28.95B |
| Cash, Cash Equivalents and Short-Term Investments | 10.01B | 10.99B | 11.50B | 11.42B | 10.08B | 9.39B |
| Total Debt | 5.59B | 5.95B | 7.13M | 5.74B | 5.60B | 6.01B |
| Total Liabilities | 17.09B | 15.29B | 15.04B | 14.06B | 12.95B | 13.19B |
| Stockholders Equity | 16.95B | 20.45B | 19.68B | 18.64B | 17.01B | 15.73B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 6.76B | 6.62B | 6.80B | 5.26B | 5.63B |
| Operating Cash Flow | 0.00 | 8.87B | 9.29B | 8.67B | 6.67B | 6.75B |
| Investing Cash Flow | 0.00 | -3.09B | -3.29B | -1.71B | -3.50B | -3.25B |
| Financing Cash Flow | 0.00 | -6.80B | -6.61B | -5.47B | -4.61B | -3.91B |
Industria de Diseno Textil Technical Analysis
Negative
16.49
Price Trends
16.20
Negative
15.57
Negative
14.23
Positive
Market Momentum
-0.48
Positive
34.59
Neutral
32.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDEXY, the sentiment is Negative. The current price of 16.49 is above the 20-day moving average (MA) of 15.70, above the 50-day MA of 16.20, and above the 200-day MA of 14.23, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 34.59 is Neutral, neither overbought nor oversold. The STOCH value of 32.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IDEXY.
Industria de Diseno Textil Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $68.14B | 28.12 | 36.70% | 0.90% | 3.71% | 0.65% | |
76 Outperform | $171.77B | 30.68 | 59.53% | 1.07% | 4.53% | 6.52% | |
74 Outperform | $182.85B | 28.57 | 32.34% | 3.76% | 6.10% | 6.04% | |
64 Neutral | $8.97B | 12.79 | 22.98% | 2.45% | 0.29% | 3.65% | |
63 Neutral | $19.99B | 13.49 | 34.82% | ― | 8.76% | 3.41% | |
62 Neutral | $19.63B | 31.09 | 39.79% | ― | 6.80% | 20.46% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
IDEXY
Industria de Diseno Textil
14.70
2.31
18.64%
GAP
Gap Inc
24.08
4.66
24.03%
LULU
Lululemon Athletica
165.57
-157.05
-48.68%
ROST
Ross Stores
210.66
88.34
72.22%
TJX
TJX Companies
154.68
39.96
34.83%
BURL
Burlington Stores
311.99
78.03
33.35%
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.