Skip to Content

Industria De Diseno Textil SA Share From Split ITX

Morningstar Rating
€45.19 −0.84 (1.82%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Inditex Continues Grabbing Market Share From Weaker Players

Industria de Diseno Textil, or Inditex,is the number-one apparel company by revenue in Western Europe and globally. It follows a so-called fast-fashion business model, which involves feedback loop-driven design and small batches of supplies at attractive prices. This allowed it to gain market share from not only midprice players but even luxury ones in the apparel segment.

Price vs Fair Value

ITX is trading at a 32% premium.
Price
€46.03
Fair Value
€76.00
Uncertainty
Medium
1-Star Price
€71.14
5-Star Price
€46.90
Economic Moat
Gxsht
Capital Allocation
Mqwvdmqxb

Bulls Say, Bears Say

Bulls

Inditex could further benefit from market share gains from weaker midprice brands that still account for a significant part of the European apparel market.

Bears

Inditex could be too slow to trim its store count to address the channel shift to online, which could weigh on margins.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ITX is a good fit for your portfolio.

News

Trading Information

Previous Close Price
€46.03
Day Range
€45.1546.08
52-Week Range
€30.4447.02
Bid/Ask
/
Market Cap
€140.68 Bil
Volume/Avg
1.4 Mil / 2.5 Mil

Key Statistics

Price/Earnings (Normalized)
26.13
Price/Sales
3.92
Dividend Yield (Trailing)
1.78%
Dividend Yield (Forward)
1.78%
Total Yield
1.76%

Company Profile

Inditex is a multibrand fashion conglomerate, founded in 1985. Zara is its flagship brand (including Zara Home), generating just over 70% of revenue and 75% of profits. Other brands include Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Uterque. The company operates through 5,800-plus stores globally, over 1,800 of them belonging to the Zara brand. Sixty-five percent of revenue is generated in the European home market, while the Americas and Asia contribute 20% and 14%, respectively. The company keeps design in house while mostly outsourcing manufacturing (own manufacturing constitutes only a low-single-digit percentage of output). Over 50% of sourcing factories are in proximity to the company’s headquarters in Spain.
Sector
Consumer Cyclical
Industry
Apparel Retail
Stock Style Box
Large Growth
Total Number of Employees
161,281

Competitors

Valuation

Metric
ITX
URBN
GPS
Price/Earnings (Normalized)
26.1311.8914.06
Price/Book Value
7.551.692.87
Price/Sales
3.920.710.51
Price/Cash Flow
16.135.337.33
Price/Earnings
ITX
URBN
GPS

Financial Strength

Metric
ITX
URBN
GPS
Quick Ratio
1.450.540.71
Current Ratio
1.791.291.42
Interest Coverage
24.9547.726.22
Quick Ratio
ITX
URBN
GPS

Profitability

Metric
ITX
URBN
GPS
Return on Assets (Normalized)
17.22%7.80%4.85%
Return on Equity (Normalized)
32.33%15.69%22.84%
Return on Invested Capital (Normalized)
23.96%9.67%6.69%
Return on Assets
ITX
URBN
GPS
See how this stock stacks up to its competitors with Morningstar Investor

Apparel Retail Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
IDEXY
Industria De Diseno Textil SA ADRZsw$150.6 Bil
IDEXF
Industria De Diseno Textil SA Share From SplitGdy$150.6 Bil
TJX
TJX Companies IncCqckvdqtJph$107.9 Bil
FRCOY
Fast Retailing Co Ltd ADRBpdh$85.4 Bil
FRCOF
Fast Retailing Co LtdCdy$85.4 Bil
ROST
Ross Stores IncWhkmyqjqCty$44.6 Bil
LULU
Lululemon Athletica IncQwlthzxylgYbzvbpf$43.8 Bil
NXGPY
Next PLC ADRWhxqwt$14.4 Bil
GPS
Gap IncTjmdbzjyFzgnv$7.5 Bil
URBN
Urban Outfitters IncMjhbdtkcgNgft$3.6 Bil

Sponsor Center