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Industria de Diseno Textil (IDEXY)
OTHER OTC:IDEXY
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Industria de Diseno Textil
(OTC:IDEXY)
Rating:75Outperform
Price Target:
$29.00
▲(123.94%Upside)
Industria de Diseno Textil (IDEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$161.00B
Dividend Yield4.85%
Average Volume (3M)697.71K
Price to Earnings (P/E)25.4
Beta (1Y)0.88
Revenue Growth5.58%
EPS Growth6.38%
CountryUS
Employees67,195
SectorConsumer Cyclical
Sector Strength56
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.12
Shares Outstanding12,466,608,000
10 Day Avg. Volume981,818
30 Day Avg. Volume697,706
Financial Highlights & Ratios
PEG Ratio2.40
Price to Book (P/B)3.17
Price to Sales (P/S)0.00
P/FCF Ratio8.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
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.
How the Company Makes MoneyInditex makes money primarily through the retail sale of clothing, accessories, and home textiles under its various brand names. Its revenue model is centered around fast fashion, which involves rapidly designing, producing, and selling clothing in response to current fashion trends. This approach allows Inditex to frequently update its product offerings and encourage frequent customer visits. The company operates through a combination of physical retail stores and a growing online sales platform, which together contribute significantly to its revenue streams. Key factors contributing to Inditex's earnings include its efficient supply chain, strategic store locations worldwide, and a strong brand reputation. Additionally, the company benefits from economies of scale and cost efficiencies in manufacturing and logistics. Inditex's ability to quickly adapt to market demands and maintain low inventory levels also supports its profitability.
Industria de Diseno Textil Earnings Call Summary
Earnings Call Date:Jun 11, 2025
(Q1-2025)
| % Change Since: -7.63%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with stable sales growth, strong net income, and effective expansion strategies across markets. However, challenges such as currency impacts and increased operating expenses were noted. Overall, the company's performance and strategic initiatives indicate a robust operational framework, though some cost pressures remain.Q1-2025 Updates
Positive Updates
Solid Sales Growth
Sales in the first quarter of 2025 grew by 1.5%, with sales in constant currency increasing by 4.2%. Adjusted for the leap year impact, the sales growth was 5.3%.
Stable Gross Margin
The gross margin remained stable at 60.6%, demonstrating the flexibility and effectiveness of the business model.
Net Income Growth
Net income increased by 1% to EUR 1.3 billion, maintaining a strong level of profitability.
Store and Online Sales Performance
Store and online sales in constant currency grew 6% from May 1 to June 9, 2025, compared to the same period in 2024.
Expansion and Strategic Initiatives
New store openings occurred in 26 markets, and technology enhancements, such as soft tag technology, were rolled out in Zara and other brands.
Logistics and Investment Plans
The logistics expansion plan is on track with significant investments, including a new distribution center for Zaragoza II. The investment plan for 2025-2026 includes a 5% growth in gross space.
Negative Updates
Currency Impact
Based on current exchange rates, a minus 3% currency impact on sales is expected for the full year 2025.
Operating Expenses Increase
Operating expenses increased by 2.3%, although managed rigorously.
Inventory Increase
Inventory as of April 30, 2025, was 6% higher, although considered to be of high quality.
Company Guidance
In the first quarter of 2025, Inditex demonstrated solid operational performance with sales growth of 1.5%, reaching EUR 8.3 billion, and a 4.2% increase in constant currency. The adjusted sales growth, accounting for the leap year, was 5.3%. The company maintained a stable gross margin of 60.6% and reported a net income increase of 1% to EUR 1.3 billion. Operating expenses grew by 2.3%, while EBITDA rose by 1% to EUR 2.4 billion. Store and online sales in constant currency from May 1 to June 9, 2025, increased by 6%. Inditex's first quarter inventory was 6% higher, and the company plans a 5% annual gross space growth for 2025-2026. The firm anticipates a minus 3% currency impact on sales for the full year 2025, with ordinary capital expenditure projected at approximately EUR 1.8 billion. Additionally, Inditex announced a 9% dividend increase to EUR 1.68 per share, reflecting its strong financial health and commitment to shareholder returns.Industria de Diseno Textil Financial Statement Overview
Summary
Industria de Diseno Textil exhibits strong financial performance with robust revenue growth, healthy profit margins, a stable balance sheet with low debt, and consistent cash flow generation. However, cash flow volatility warrants attention.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.87
Very Positive
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.82
Very Positive
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.78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.16B | 38.63B | 35.95B | 32.57B | 27.72B | 20.40B |
| Gross Profit | 19.96B | 22.34B | 17.86B | 18.56B | 15.81B | 11.39B |
| EBITDA | 10.36B | 11.10B | 9.97B | 8.22B | 7.10B | 4.24B |
| Net Income | 5.64B | 5.87B | 5.38B | 4.13B | 3.24B | 1.11B |
Balance Sheet | ||||||
| Total Assets | 33.25B | 34.71B | 32.73B | 29.98B | 28.95B | 26.42B |
| Cash, Cash Equivalents and Short-Term Investments | 10.93B | 11.50B | 11.42B | 10.08B | 9.39B | 7.57B |
| Total Debt | 5.24B | 7.13M | 5.74B | 5.60B | 6.01B | 6.35B |
| Total Liabilities | 16.70B | 15.04B | 14.06B | 12.95B | 13.19B | 11.87B |
| Stockholders Equity | 16.51B | 19.68B | 18.64B | 17.01B | 15.73B | 14.52B |
Cash Flow | ||||||
| Free Cash Flow | 1.48B | 6.62B | 6.80B | 5.26B | 5.63B | 2.31B |
| Operating Cash Flow | 1.48B | 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
Negative
12.95
Price Trends
13.36
Negative
13.15
Negative
13.37
Negative
Market Momentum
-0.12
Positive
48.16
Neutral
44.66
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 12.95 is below the 20-day moving average (MA) of 13.18, below the 50-day MA of 13.36, and below the 200-day MA of 13.37, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 44.66 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
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $161.00B | 25.45 | 32.29% | 4.85% | 5.58% | 6.38% | |
74 Outperform | $139.80B | 29.55 | 60.36% | 1.36% | 3.79% | 5.23% | |
71 Outperform | $8.42B | 9.83 | 29.16% | 2.92% | 1.07% | 28.03% | |
71 Outperform | $15.28B | 29.74 | 44.13% | ― | 8.29% | 38.09% | |
66 Neutral | $43.02B | 20.80 | 39.57% | 1.23% | 2.49% | 6.60% | |
66 Neutral | £1.85B | 11.29 | 6.20% | 3.10% | 0.61% | -17.57% | |
64 Neutral | $30.63B | 16.81 | 42.49% | ― | 9.39% | 17.28% |
* Consumer Cyclical Sector Average
Performance Comparison
IDEXY
Industria de Diseno Textil
13.06
1.00
8.29%
GAP
Gap Inc
22.72
0.13
0.58%
LULU
Lululemon Athletica
246.30
-51.84
-17.39%
ROST
Ross Stores
131.55
-12.43
-8.63%
TJX
TJX Companies
125.86
15.64
14.19%
BURL
Burlington Stores
242.28
6.60
2.80%
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.