Industria de Diseño Textil, S.A.

Financial Performance

5Y price score: 141

10Y return: 107.2%

DATE RANGE:

EUR Per
Share

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41.2

52-week range

59.4

58.52

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

Dividend Yield TTM

2.9 %

Market cap

182,349

Price / Earnings TTM

Price / Book TTM

9.6

PEG TTM

6.1

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

38 %

118.7 %

107.2 %

Free cash flow per share growth

175.8 %

123.4 %

Earnings per share growth

4.8 %

455.6 %

117.4 %

Founded: 1,985

Employees: 67,195

Business Summary: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 concepts. The company markets its extensive range of offerings under well-known brands such as Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home. Beyond its core retail activities, ITX's business ventures also span textile manufacturing, logistical operations, product design, insurance services, construction projects, real estate investments, and financial services provision. With its origins tracing back to 1963, Industria de Diseño Textil, S.A. is headquartered in A Coruña, Spain, and its operations extend across Spain, the broader European continent, the Americas, and various other international regions.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2025 Q4 (Mar 11, 2026)

1) Strategy & Leadership
- Inditex's CEO, Oscar Garcia Maceiras, emphasized the company's commitment to customer safety and well-being, particularly in light of recent events in the Middle East.
- The company reported a solid performance in 2025, with a sales growth of 3.2% and a net income increase of 6% to EUR 6.2 billion.
- Inditex operates in 214 markets, highlighting significant global growth opportunities and low market penetration, which supports long-term growth.
- The ongoing "Retail Optimization" strategy focuses on enhancing customer experience both online and in-store, with a commitment to innovation and technology integration.

2) Financial & Segment Results
- Total sales reached EUR 39.9 billion, with a gross profit of EUR 23.2 billion, reflecting a gross margin of 58.3%.
- EBITDA grew by 5% to EUR 11.3 billion, showcasing effective cost management and operational leverage.
- The company generated a net cash position of EUR 11 billion at year-end, indicating strong financial health.
- Sales growth was consistent across all concepts and geographical areas, with notable online performance contributing to overall results.

3) Operational Plans & Product Initiatives
- Inditex plans to invest EUR 2.3 billion in capital expenditures for 2026, focusing on store optimization, technology integration, and enhancing online platforms.
- The company is expanding its presence in new markets, including the opening of its first store in Curaçao and further expansions in the U.S. and Brazil.
- Technological advancements include the rollout of AI-based virtual fitting systems and enhanced in-store technology to improve customer interactions.

4) Problems / Headwinds
- The recent conflict in the Middle East has temporarily impacted some stores, though most remain open.
- There is a potential for a negative 1% top-line FX impact in 2026, with a notable first-half weighting.
- Inventory levels were down 2% year-on-year, raising concerns about potential supply chain challenges amid strong trading conditions.

5) Guidance & Outlook / Investor Angle
- For 2026, Inditex expects stable gross margins with a potential fluctuation of ±50 basis points.
- The company remains focused on long-term growth, with a proposed dividend of EUR 1.75 per share for 2025, reflecting its commitment to shareholder returns.
- Future growth strategies include further market penetration and leveraging technological advancements to enhance customer experience.

Bottom line: Inditex's strong financial performance and strategic focus on innovation and market expansion position it well for sustainable long-term growth, despite facing some short-term challenges. The proposed dividend reflects confidence in continued profitability and shareholder value.

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