Inditex ITX.MC
Inditex is a Spanish textile group owning brands such as Zara, Bershka and Massimo Dutti, with a vertically integrated business model combining design, manufacturing and retail distribution in physical stores and online. Inditex maintains exceptional quality (ROE 36.82%, ROIC 32.46%) with net cash (DN/EBITDA -0.43), but its demanding valuation (PER 25.94, PEG 3.76) and the high-rate environment limit short-term appeal.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Inditex is a Spanish textile group owning brands such as Zara, Bershka and Massimo Dutti, with a vertically integrated business model combining design, manufacturing and retail distribution in physical stores and online. Inditex maintains exceptional quality (ROE 36.82%, ROIC 32.46%) with net cash (DN/EBITDA -0.43), but its demanding valuation (PER 25.94, PEG 3.76) and the high-rate environment limit short-term appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.4 |
| Quality / Moat | 9.1 |
| Valuation | 4.9 |
| Growth | 6.3 |
| Dividend | 5.8 |
| Momentum | 6.3 |
| Risk & Context | 5.4 |
OVERALL SCORE: 6.6/10
Context and risks
Inditex is listed in Spain, a country with elevated governance risk per the reference. Although the company has solid corporate governance and global operations, jurisdictional exposure to Spain warrants a moderate risk penalty.
News considered in the analysis
- Zara owner Inditex reports nearly 7% H1 profit growth — Resultados semestrales con crecimiento de beneficios del 7%, en línea con lo esperado; refuerza la solidez operativa pero ya estaba parcialmente en el precio.
- Inditex Breaks Records and Still Gets Marked Down — A pesar de batir récords, la acción fue castigada, lo que sugiere que el mercado descuenta riesgos futuros (consumo, tipos) más que los resultados actuales.
- Industria De Diseño Textil (BME:ITX) Pullback Keeps Growth Narrative And Valuation In Focus — Análisis de valoración tras la caída; sin información nueva material.
- Natural-Fiber Clothing Is in Demand—but Some Scientists Say It Needs More Scrutiny — Artículo de tendencia sectorial sin impacto directo cuantificable en Inditex.
- BOOT vs. IDEXY: Which Stock Is the Better Value Option? — Comparativa genérica de valoración entre dos compañías; sin información nueva.
Verdict: Hold; business quality justifies a premium, but the current multiple offers insufficient margin of safety.
Main risk: Valuation risk: a PER of 25.94 and PEG of 3.76 leave little room if discretionary consumption weakens or rates keep rising.
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