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Industria de Diseno Textil (IDEXY)
OTHER OTC:IDEXY
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Industria de Diseno Textil
(OTC:IDEXY)
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Rating:78Outperform
Price Target:
$15.50
▲(13.97% Upside)
Industria de Diseno Textil's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While technical indicators show bullish momentum, the high P/E ratio suggests a premium valuation. The company's strategic initiatives in global expansion and sustainability further enhance its outlook, despite some operational challenges.
Industria de Diseno Textil (IDEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$169.95B
Dividend Yield6.53%
Average Volume (3M)910.50K
Price to Earnings (P/E)26.3
Beta (1Y)0.95
Revenue Growth6.10%
EPS Growth6.04%
CountryUS
Employees67,195
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.14
Shares Outstanding12,466,608,000
10 Day Avg. Volume1,622,523
30 Day Avg. Volume910,501
Financial Highlights & Ratios
PEG Ratio1.61
Price to Book (P/B)4.16
Price to Sales (P/S)2.12
P/FCF Ratio12.36
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue3.70
Enterprise Value/Gross Profit6.40
Enterprise Value/Ebitda12.83
Forecast
1Y Price Target
$15.50Price Target Upside13.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 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 Earnings Call Summary
Earnings Call Date:Sep 10, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 03, 2025
Earnings Call Sentiment Neutral
The earnings call highlights Inditex's ability to maintain solid sales growth and strong gross margins despite challenging market conditions. The company's global expansion and sustainability initiatives are notable achievements. However, currency impacts, increased operating expenses, higher inventory levels, and working capital outflows are areas of concern.Q2-2025 Updates
Positive Updates
Solid Sales Performance
Inditex achieved a satisfactory sales growth of 1.6% in the first half of 2025, with sales in constant currency increasing by 5.1%. Store and online sales in constant currency between the 1st of August and the 8th of September grew 9%.
Strong Gross Margin
Gross profit increased 1.5% to reach EUR 10.7 billion, with a gross margin of 58.3%, demonstrating effective execution of the business model despite challenging market conditions.
Global Expansion and Store Optimization
Inditex opened stores in 35 different markets in the first 6 months of 2025, including new entries into Austria and the Netherlands. The company continues to expand and optimize store locations, such as the relocation of Zara and Pull&Bear in Manchester Trafford Centre.
Positive Cash Flow and Capital Expenditure
Funds from operations increased 5% to EUR 3.7 billion. Capital expenditure reached EUR 1.3 billion, with future growth investments planned, including logistics expansion.
Sustainability Initiatives
Inditex reduced shopping bag consumption by 49% through the bringyourbag initiative and partnered with Ocean Conservancy for marine protection efforts.
Negative Updates
Currency Impact
A minus 4% top line currency impact is expected for the full year 2025, affecting overall revenue growth figures.
Operating Expenses Increase
Operating expenses increased 2.2% in the first 6 months of 2025, which reflects higher costs despite efforts to control them.
Inventory Increase
Inditex's inventory as of the 31st of July was 3% higher, posing potential challenges with inventory management.
Working Capital Outflow
A cash outflow of EUR 811 million was reported in the first half due to normalization of supply chain conditions, impacting working capital.
Company Guidance
In the first half of 2025, Inditex reported a solid performance with a sales growth of 1.6% and a constant currency increase of 5.1%. The company's net income rose by 0.8% to EUR 2.8 billion, while EBITDA increased by 1.5% to EUR 5.1 billion. Inditex's gross profit increased by 1.5% to EUR 10.7 billion, with a gross margin at 58.3%. Operating expenses were closely monitored, rising by 2.2%. The company maintained strong cash flow generation, with funds from operations up by 5% to EUR 3.7 billion and capital expenditure reaching EUR 1.3 billion. Looking forward, Inditex anticipates a stable gross margin for the full year 2025 with a variance of plus/minus 50 basis points. The company also noted a 9% growth in store and online sales in constant currency between August 1 and September 8, 2025. Inditex continues to invest in logistics and technology, with an expected ordinary capital expenditure of approximately EUR 1.8 billion for 2025, while also focusing on sustainability initiatives.Industria de Diseno Textil Financial Statement Overview
Summary
Industria de Diseno Textil demonstrates strong financial performance with robust revenue growth and healthy profit margins. The balance sheet is stable with low financial risk, and cash flow generation is solid despite some volatility.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 | Dec 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.76B | 38.63B | 35.95B | 32.57B | 27.72B | 20.40B |
| Gross Profit | 22.41B | 22.34B | 17.86B | 18.56B | 15.81B | 11.39B |
| EBITDA | 11.17B | 11.10B | 9.97B | 8.22B | 7.10B | 4.24B |
| Net Income | 5.88B | 5.87B | 5.38B | 4.13B | 3.24B | 1.11B |
Balance Sheet | ||||||
| Total Assets | 34.78B | 34.71B | 32.73B | 29.98B | 28.95B | 26.42B |
| Cash, Cash Equivalents and Short-Term Investments | 10.79B | 11.50B | 11.42B | 10.08B | 9.39B | 7.57B |
| Total Debt | 5.59B | 5.73B | 5.74B | 5.60B | 6.01B | 6.35B |
| Total Liabilities | 16.72B | 15.04B | 14.06B | 12.95B | 13.19B | 11.87B |
| Stockholders Equity | 18.06B | 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
Positive
13.60
Price Trends
12.56
Positive
12.95
Positive
13.00
Positive
Market Momentum
0.27
Negative
67.50
Neutral
81.98
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 13.6 is above the 20-day moving average (MA) of 12.82, above the 50-day MA of 12.56, and above the 200-day MA of 13.00, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 81.98 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 157.11B | 32.21 | 56.10% | 1.13% | 4.14% | 5.83% | |
78 Outperform | $169.95B | 26.29 | 34.62% | 6.53% | 6.10% | 6.04% | |
77 Outperform | 17.03B | 31.87 | 37.76% | ― | 7.56% | 29.06% | |
75 Outperform | 8.88B | 10.28 | 25.90% | 2.63% | -0.05% | 15.17% | |
75 Outperform | 47.82B | 23.35 | 35.98% | 1.08% | 1.92% | 1.50% | |
65 Neutral | 19.79B | 10.95 | 40.70% | ― | 9.16% | 12.74% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
IDEXY
Industria de Diseno Textil
13.60
-0.29
-2.09%
GAP
Gap Inc
22.64
3.22
16.58%
LULU
Lululemon Athletica
162.34
-106.07
-39.52%
ROST
Ross Stores
146.45
-2.21
-1.49%
TJX
TJX Companies
139.55
23.18
19.92%
BURL
Burlington Stores
267.21
-3.08
-1.14%
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.