# Industria de Diseño Textil (BME:ITX)

As of Sun 8 Nov 2026 12:00 UTC (weekly snapshot). Full report: https://standard-equity.report/BME/ITX

Price €59.04 (EUR), market cap €183.9B, Consumer Discretionary - Apparel Retail.

## Valuation

- SE Reference Value (expected value, DCF): €58.17 (central 50% range €49.40 to €70.47), -1% against the price; range width narrow
- SE Grade: 2 of 3 (Value 2, Quality 3, Moat 2)
- Consensus Rating: Buy (Strong buy 13, Buy 7, Hold 3, Sell 0, Strong sell 1)
- Consensus Price (mean): €62.77, +6% against the price

## Key metrics

Financials in EUR. Peer percentile: 100 = best in the peer group.

| Metric | Now | 5Y median | 10Y median | Peers |
|---|---|---|---|---|
| Revenue | €41.26B | CAGR 14.3% | CAGR 6.1% | P80 |
| Revenue growth | 6.0% | 10.4% | 8.2% | P43 |
| Gross margin | 56.5% | 55.7% | 54.9% | P53 |
| Operating margin | 20.1% | 19.1% | 17.3% | P77 |
| Net margin | 15.5% | 15.0% | 13.2% | P83 |
| FCF yield (FY2026) | 4.7% | 6.6% | 4.7% | P53 |
| FCF margin (FY2026) | 17.7% | 18.3% | 17.5% | P87 |
| FCF / net income (FY2026) | 1.13x | 1.35x | 1.28x | P72 |
| ROIC | 49.2% | 42.6% | 42.7% | P93 |
| ROE | 36.8% | 30.2% | 25.0% | P59 |
| ROA | 17.5% | 16.4% | 16.0% | P83 |
| EPS | €2.06 | CAGR 41.2% | CAGR 7.8% | - |
| EPS growth | 8.9% | 27.3% | 6.7% | P39 |
| Book value per share | €5.73 | CAGR 7.0% | CAGR 5.4% | - |
| FCF per share (FY2026) | €2.26 | CAGR 22.5% | CAGR 10.5% | - |
| Dividend per share | €1.20 | CAGR 40.4% | CAGR 10.2% | - |
| Dividend yield | 2.0% | 2.5% | 2.2% | P68 |
| Payout ratio (FY2026) | 60.2% | 60.2% | 60.1% | P92 |
| Diluted shares | 3,115.0M | CAGR 0.0% | CAGR 0.0% | P48 |
| Buyback yield | 0.0% | 0.0% | -0.0% | P48 |
| Debt/equity | 0.35x | 0.30x | 0.29x | P69 |
| Enterprise value | €179.1B | CAGR 14.0% | CAGR 5.6% | P90 |
| Long-term debt | €4.549B | CAGR -0.9% | CAGR 139.9% | P67 |

## Company Note (Q2 2027)

Written by AI from the data above.

**Inditex accelerated in the second quarter of FY2027**, with revenue up 9.1% year on year and diluted EPS up 8.0%. Profit lagged sales because higher transport and input costs from the Middle East disruptions weighed on gross margin and operating expenses. A weaker U.S. dollar gave a slight sourcing tailwind in the first half, and tighter underlying cost control, helped by strong sales execution, kept the damage contained. The shares look fairly priced: SE fair value of €58 is 1.5% below the price.

**Management maintained its FY2026 gross margin guidance** of stable within ±50 basis points. It guided to gross space growth of about 5% and ordinary capital spending, while flagging a full-year currency drag on sales. Revenue momentum backs that stance, with growth picking up from 5.8% in the first quarter. Analysts asked why operating expenses grew faster than sales, and management blamed Middle East transport and said operating margins held broadly steady. The CEO insisted that "growth is in our hands."

**Consensus has EPS growing** 8.2% in FY2027 and 9.2% in FY2028, which fits the guidance and the sales pickup. Analysts expect FY2027 revenue growth of 7.7%. The price implies 7.1% a year, so the market asks slightly less than the analysts expect. That leaves little room for upside unless growth runs ahead of forecasts. The beat record is mixed, with EPS beating in 4 of the last 8 quarters, so the forecasts carry no clear cushion either way.

**Returns have strengthened steadily**. ROIC moved from 35.0% in FY2023 to 42.6% in FY2026, and ROE rose from 25.2% to 31.0% over the same span. ROA climbed from 13.8% to 17.5%, showing that the gains go beyond leverage. Trailing ROIC of 49.2% sits well above its five-year median and ranks in the 93rd percentile among the companies nearest in size. These figures show a business earning far more than it costs to fund.

**The shares trade** at 28.7x trailing earnings, above their ten-year median of 24.7x. SE fair value, held with high confidence, is €58, 1.5% below the price. The analysts' weighted target of €63 is 6.3% above the price. For the price to hold, Inditex has to keep compounding sales at close to recent rates through the Middle East strain. The clearest sign that it is failing would be second-half gross margin falling outside management's stable range as transport costs feed through with a lag.

**The SE Score** is 2 of 3. Quality earns three stars because ROIC of 43% far exceeds a 9.2% cost of capital, backed by net cash and strong cash conversion. Moat earns two stars because ROIC has stayed above 15% in 9 of the last 10 years and gross margin has held stable. Value earns two stars because the price sits near SE fair value. That left the overall rating where the business tier set it, with no lift from valuation.

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Weekly snapshot, not live data. For information only, not investment advice. Methodology: https://standard-equity.report/methodology