Industria de Diseno Textil (IDEXY) AI Stock Analysis

• Market Cap: $206.36B
• Dividend Yield: 3.76%
• Average Volume (3M): 451.90K
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.96
• Revenue Growth: 6.10%
• EPS Growth: 6.04%
• Country: US
• Employees: 67,195
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.17
• Shares Outstanding: 12,466,608,000
• 10 Day Avg. Volume: 425,885
• 30 Day Avg. Volume: 451,899
• PEG Ratio: 1.61
• Price to Book (P/B): 4.16
• Price to Sales (P/S): 2.12
• P/FCF Ratio: 12.36
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 2.91
• Enterprise Value/Ebitda: 5.89
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $16.00 ▲(14.61% Upside)

Industria de Diseno Textil's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. The company's robust growth, profitability, and strategic global expansion contribute to its favorable outlook. Technical indicators support a positive trend, though valuation metrics suggest moderate pricing. Overall, the stock is well-positioned for future growth, with some attention needed on cash flow volatility and external challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Global Expansion

Expanding into new markets enhances global presence and revenue potential, diversifying geographic risk and increasing market share.

Logistics and Technology Investments

Investing in logistics and technology boosts operational efficiency and capacity, ensuring competitive advantage and scalability.

Negative Factors

Currency Headwinds

Currency fluctuations can significantly impact revenue and profit margins, posing a risk to financial performance and stability.

Cash Flow Volatility

Volatile cash flow growth can affect the company's ability to fund operations and investments, potentially impacting long-term growth.

Potential EU Legislation Impact

Regulatory changes could alter cost structures and competitive dynamics, affecting profitability and market strategies.

Industria de Diseno Textil 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 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.

How the Company Makes Money

Inditex makes money through its extensive network of retail stores and e-commerce platforms, selling clothing, footwear, and accessories across its various brand lines. Its revenue model is primarily driven by the fast fashion approach, which involves quickly bringing fashion trends from the catwalk to the stores. This strategy allows the company to minimize inventory costs and respond swiftly to changing consumer preferences. Key revenue streams include direct sales from physical stores, online sales, and wholesale operations. Significant partnerships with suppliers and logistics companies enable Inditex to maintain an efficient supply chain, reducing lead times and costs. The company's global presence and diverse brand portfolio also contribute to its strong earnings, as it can cater to different market segments and geographic regions.

Industria de Diseno Textil Financial Statement Overview

Summary

Industria de Diseno Textil demonstrates strong financial performance with robust revenue growth, healthy profit margins, and a stable balance sheet. The company shows effective cost management and profitability, with a low debt-to-equity ratio and strong return on equity. Cash flow generation is solid, though there is some volatility in free cash flow growth.

Income Statement

Industria de Diseno Textil shows a strong financial performance with impressive revenue growth rates and healthy profit margins. The gross profit margin and net profit margin have been consistently robust, highlighting effective cost management and profitability. The EBIT and EBITDA margins further underscore operational efficiency and a solid profitability trajectory.

Balance Sheet

The company's balance sheet reflects a stable financial position with a very low debt-to-equity ratio, demonstrating prudent financial leverage. The return on equity is strong, showing effective use of shareholder funds. The equity ratio indicates a healthy proportion of equity in the capital structure, reducing financial risk.

Cash Flow

Cash flow analysis shows a positive trend with consistent free cash flow generation, supporting future growth and investment. The operating cash flow to net income ratio indicates efficient cash conversion from profits. However, the free cash flow growth rate has shown volatility, which could indicate potential fluctuations in future cash availability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	38.92B	38.63B	35.95B	32.57B	27.72B	20.40B
Gross Profit	22.51B	22.34B	17.86B	18.56B	15.81B	11.39B
EBITDA	11.11B	11.10B	10.04B	8.28B	7.16B	4.24B
Net Income	5.89B	5.87B	5.38B	4.13B	3.24B	1.11B
Balance Sheet
Total Assets	34.05B	34.71B	32.73B	29.98B	28.95B	26.42B
Cash, Cash Equivalents and Short-Term Investments	10.01B	11.50B	11.42B	10.08B	9.39B	7.57B
Total Debt	5.59B	7.13M	5.74B	5.60B	6.01B	6.35B
Total Liabilities	17.09B	15.04B	14.06B	12.95B	13.19B	11.87B
Stockholders Equity	16.95B	19.68B	18.64B	17.01B	15.73B	14.52B
Cash Flow
Free Cash Flow	0.00	6.62B	6.80B	5.26B	5.63B	2.31B
Operating Cash Flow	0.00	9.29B	8.67B	6.67B	6.75B	3.02B
Investing Cash Flow	0.00	-3.29B	-1.71B	-3.50B	-3.25B	2.51B
Financing Cash Flow	0.00	-6.61B	-5.47B	-4.61B	-3.91B	-2.79B

Industria de Diseno Textil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDEXY, the sentiment is Positive. The current price of 13.96 is below the 20-day moving average (MA) of 15.43, below the 50-day MA of 14.52, and above the 200-day MA of 13.24, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 70.76 is Negative, neither overbought nor oversold. The STOCH value of 84.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IDEXY.

Industria de Diseno Textil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROST	80 Outperform	$58.44B	28.22	37.43%	0.90%	3.71%	0.65%
TJX	79 Outperform	$173.88B	34.45	58.40%	1.07%	4.53%	6.52%
IDEXY	79 Outperform	$206.36B	30.54	32.58%	3.76%	6.10%	6.04%
GAP	76 Outperform	$10.10B	11.81	25.10%	2.38%	0.29%	3.65%
LULU	75 Outperform	$26.00B	14.84	41.02%	―	8.76%	3.41%
BURL	68 Neutral	$17.72B	32.61	41.92%	―	6.80%	20.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%