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Industria de Diseno Textil
(OTC:IDEXY)
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Rating:71Outperform
Price Target:
$17.50
▲(5.11% Upside)
Action:Reiterated
Date:09/12/26
The score is driven primarily by strong financial performance (high margins and solid cash generation) and a constructive earnings call with stable guidance and continued growth initiatives. These positives are tempered by weak technicals (price below key moving averages with negative MACD) and a valuation that is not cheap given the P/E, though supported by the dividend yield.
Positive Factors
High and resilient profitability
High gross, net and operating margins show Inditex converts substantial sales into profit despite operating in apparel retail. This profitability provides a durable buffer against cost pressure, funds store and technology investment, and supports competitive execution over coming quarters.
Negative Factors
Cooling top-line momentum
The recent revenue decline indicates that strong historical earnings recovery has not translated into consistently accelerating demand. Slower top-line growth could limit operating leverage, reduce the pace of profit expansion, and make continued investment less efficient if it persists.
Read all positive and negative factors
Positive Factors
Negative Factors
High and resilient profitability
High gross, net and operating margins show Inditex converts substantial sales into profit despite operating in apparel retail. This profitability provides a durable buffer against cost pressure, funds store and technology investment, and supports competitive execution over coming quarters.
Read all positive factors
Industria de Diseno Textil (IDEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$192.82B
Dividend Yield3.29%
Average Volume (3M)289.14K
Price to Earnings (P/E)25.5
Beta (1Y)0.94
Revenue Growth12.79%
EPS Growth15.56%
CountryUS
Employees163,047
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.52
Shares Outstanding12,466,608,000
10 Day Avg. Volume275,740
30 Day Avg. Volume289,143
Financial Highlights & Ratios
PEG Ratio4.29
Price to Book (P/B)8.35
Price to Sales (P/S)4.28
P/FCF Ratio25.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.63
Revenue Forecast (FY)$50.02B
Industria de Diseno Textil Business Overview & Revenue Model
Company Description
Industria de Diseño Textil, S.A., together with its subsidiaries, engages in the retail and online distribution of clothing, footwear, accessories, and household products in Spain, rest of Europe, the Americas, Asia, and internationally. The compa...
Industria de Diseno Textil Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall. Management reported solid first-half sales, profit and cash-flow growth, stable operating margins, positive momentum into the second half and substantial long-term expansion opportunities. The main challenges were higher transport and input costs, operating expenses growing faster than sales, expected second-half gross margin effects and continued Middle East sales disruption, but these were presented as contained within existing guidance.Positive Updates
Strong First-Half Sales and Net Income Growth
First-half sales grew 7.6% to EUR 19.8 billion, or 9.2% in constant currency, while net income increased 6.8% to EUR 3 billion. Performance was broad-based across concepts, store and online channels, geographies and markets.
Negative Updates
Higher Transport and Input Costs
Disruptions in the Middle East led to elevated transport and input costs during the first half. Transport costs affected both the gross margin and operating expense lines.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong First-Half Sales and Net Income Growth
First-half sales grew 7.6% to EUR 19.8 billion, or 9.2% in constant currency, while net income increased 6.8% to EUR 3 billion. Performance was broad-based across concepts, store and online channels, geographies and markets.
Read all positive updates
Company Guidance
For 2026, Inditex continues to expect a minus 1% top line currency impact, a stable gross margin of plus/minus 50 basis points, ordinary capital expenditure of around EUR 2.3 billion, and close to EUR 200 million of extraordinary CapEx; annual gross space growth is expected to be around 5%, with net space contribution continuing to be positive along with ongoing strong online growth, while the company remains focused on broadly stable operating margins.Industria de Diseno Textil Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.03B | 39.86B | 38.63B | 35.95B | 32.57B | 20.40B |
| Gross Profit | 19.24B | 19.30B | 22.34B | 17.86B | 17.83B | 11.39B |
| EBITDA | 11.76B | 10.90B | 11.10B | 10.04B | 8.28B | 4.24B |
| Net Income | 6.40B | 6.22B | 5.87B | 5.38B | 4.13B | 1.11B |
Balance Sheet | ||||||
| Total Assets | 36.61B | 35.74B | 34.71B | 32.73B | 29.98B | 26.42B |
| Cash, Cash Equivalents and Short-Term Investments | 10.40B | 10.99B | 11.50B | 11.42B | 10.08B | 7.57B |
| Total Debt | 6.20B | 5.95B | 7.13M | 5.74B | 5.45B | 6.35B |
| Total Liabilities | 18.76B | 15.29B | 15.04B | 14.06B | 12.95B | 11.87B |
| Stockholders Equity | 17.86B | 20.45B | 19.68B | 18.64B | 17.01B | 14.52B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 6.76B | 6.62B | 6.80B | 5.26B | 2.31B |
| Operating Cash Flow | 0.00 | 8.87B | 9.29B | 8.67B | 6.67B | 3.02B |
| Investing Cash Flow | 0.00 | -3.09B | -3.29B | -1.71B | -3.50B | 2.51B |
| Financing Cash Flow | 0.00 | -6.80B | -6.61B | -5.47B | -4.61B | -2.79B |
Industria de Diseno Textil Technical Analysis
Negative
16.65
Price Trends
16.22
Negative
15.79
Negative
15.73
Negative
Market Momentum
-0.25
Positive
28.43
Positive
1.76
Positive
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 16.65 is above the 20-day moving average (MA) of 16.42, above the 50-day MA of 16.22, and above the 200-day MA of 15.73, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 28.43 is Positive, neither overbought nor oversold. The STOCH value of 1.76 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.60B | 11.68 | 20.72% | ― | 11.01% | 24.97% | |
72 Outperform | $73.49B | 27.16 | 42.34% | 0.77% | 14.02% | 31.41% | |
71 Outperform | $192.82B | 25.52 | 33.72% | 3.29% | 12.79% | 15.56% | |
69 Neutral | $7.35B | 5.97 | 33.13% | 3.45% | 1.05% | 44.82% | |
68 Neutral | $138.59B | 23.04 | 59.77% | 1.45% | 7.66% | 23.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $14.59B | 20.40 | 39.82% | ― | 10.89% | 31.47% |
* Consumer Cyclical Sector Average
IDEXY
Industria de Diseno Textil
15.11
1.79
13.42%
GAP
Gap Inc
20.43
-1.53
-6.98%
ROST
Ross Stores
226.26
81.02
55.78%
TJX
TJX Companies
124.60
-13.27
-9.62%
URBN
Urban Outfitters
75.91
5.58
7.93%
BURL
Burlington Stores
227.28
-39.93
-14.94%
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.