BME:ITX

Stock Analysis Report

Industria de Diseño Textil

Executive Summary

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household textile products through various commercial concepts.


Snowflake Analysis

Excellent balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Industria de Diseño Textil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ITX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

ITX

-0.1%

ES Specialty Retail

1.7%

ES Market


1 Year Return

22.8%

ITX

23.3%

ES Specialty Retail

9.2%

ES Market

Return vs Industry: ITX underperformed the Spanish Specialty Retail industry which returned 24.3% over the past year.

Return vs Market: ITX exceeded the Spanish Market which returned 9% over the past year.


Shareholder returns

ITXIndustryMarket
7 Day-1.2%-0.1%1.7%
30 Day-0.9%0.7%2.9%
90 Day13.9%10.8%7.4%
1 Year26.0%22.8%27.3%23.3%13.0%9.2%
3 Year8.7%1.7%5.3%-7.3%17.5%6.3%
5 Year24.7%13.3%7.6%-10.4%12.4%-6.3%

Price Volatility Vs. Market

How volatile is Industria de Diseño Textil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Industria de Diseño Textil undervalued compared to its fair value and its price relative to the market?

26.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ITX (€31.48) is trading above our estimate of fair value (€29.01)

Significantly Below Fair Value: ITX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ITX is poor value based on its PE Ratio (26.3x) compared to the Specialty Retail industry average (15.1x).

PE vs Market: ITX is poor value based on its PE Ratio (26.3x) compared to the Spanish market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: ITX is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: ITX is overvalued based on its PB Ratio (7x) compared to the XE Specialty Retail industry average (1.4x).


Next Steps

Future Growth

How is Industria de Diseño Textil forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITX's forecast earnings growth (8% per year) is above the savings rate (0.4%).

Earnings vs Market: ITX's earnings (8% per year) are forecast to grow slower than the Spanish market (9.7% per year).

High Growth Earnings: ITX's earnings are forecast to grow, but not significantly.

Revenue vs Market: ITX's revenue (5.9% per year) is forecast to grow faster than the Spanish market (4.6% per year).

High Growth Revenue: ITX's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ITX's Return on Equity is forecast to be high in 3 years time (26.5%)


Next Steps

Past Performance

How has Industria de Diseño Textil performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITX has a high level of non-cash earnings.

Growing Profit Margin: ITX's current net profit margins (13.5%) are higher than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: ITX's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: ITX's earnings growth over the past year (7.5%) exceeds its 5-year average (7.5% per year).

Earnings vs Industry: ITX earnings growth over the past year (7.5%) exceeded the Specialty Retail industry 3.1%.


Return on Equity

High ROE: ITX's Return on Equity (26.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Industria de Diseño Textil's financial position?


Financial Position Analysis

Short Term Liabilities: ITX's short term assets (€12.4B) exceed its short term liabilities (€9.3B).

Long Term Liabilities: ITX's short term assets (€12.4B) exceed its long term liabilities (€6.0B).


Debt to Equity History and Analysis

Debt Level: ITX's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: ITX's debt to equity ratio has increased from 0.09% to 0.4% over the past 5 years.

Debt Coverage: ITX's debt is well covered by operating cash flow (9459.6%).

Interest Coverage: ITX's interest payments on its debt are well covered by EBIT (50.4x coverage).


Balance Sheet

Inventory Level: ITX has a high level of physical assets or inventory.

Debt Coverage by Assets: ITX's debt is covered by short term assets (assets are 218.1x debt).


Next Steps

Dividend

What is Industria de Diseño Textil's current dividend yield, its reliability and sustainability?

2.80%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.2%markettop25%5.3%industryaverage3.2%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: ITX's dividend (2.8%) is higher than the bottom 25% of dividend payers in the Spanish market (2.21%).

High Dividend: ITX's dividend (2.8%) is low compared to the top 25% of dividend payers in the Spanish market (5.34%).


Stability and Growth of Payments

Stable Dividend: ITX's dividends per share have been stable in the past 10 years.

Growing Dividend: ITX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.2%), ITX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ITX's dividends in 3 years are forecast to be covered by earnings (89.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Carlos Crespo González (48yo)

0.6yrs

Tenure

Mr. Carlos Crespo González serves as Chief Executive Officer and Director of Industria de Diseño Textil, S.A since 16 July 2019. He served as Chief Operating Officer at Industria de Diseño Textil, S.A. and ...


Leadership Team

NamePositionTenureCompensationOwnership
Pablo Isla Álvarez de Tejera
Executive Chairman8.6yrs€9.49m0.063% 62.1m
Carlos Crespo González
CEO & Director0.6yrsno data0.00084% 823.6k
Ignacio Izuzquiza Fernández
Chief Financial Officer10.8yrsno datano data
Antonio Abril Abadín
General Counsel & Secretary0yrsno datano data
Jesús Echevarría Hernández
Chief Communication Officer0yrsno datano data
Begoña López-Cano Ibarreche
Chief Human Resources Officer0yrsno datano data
Gabriel Moneo Marina
Chief Information Technology Officer0yrsno datano data
Lorena Alba Castro
Chief Logistics Officer0yrsno datano data
Felix Poza Peña
Chief Sustainability Officer0yrsno datano data
José Manuel Romay de la Colina
Head of Financial Management0yrsno datano data

0.6yrs

Average Tenure

57yo

Average Age

Experienced Management: ITX's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Pablo Isla Álvarez de Tejera
Executive Chairman8.6yrs€9.49m0.063% 62.1m
Carlos Crespo González
CEO & Director0.6yrsno data0.00084% 823.6k
Rodrigo Echenique Gordillo
Lead Independent Director4.1yrs€300.00kno data
Amancio Ortega Gaona
Non-Executive Proprietary Director34.7yrs€100.00kno data
Flora Pérez Marcote
Representative Proprietary Director4.2yrs€100.00kno data
Emilio Saracho Rodríguez de Torres
Non-Executive Independent Director9.6yrs€300.00kno data
José Arnau Sierra
Deputy Chairman7.6yrs€330.00k0.00096% 941.2k
José Luis Durán Schulz
Non-Executive Independent Director4.6yrs€300.00k0.00010% 98.0k
Alfred Vernis Domenech
Member of Social Advisory Board0yrsno datano data
Cecilia Plañiol Lacalle
Member of Social Advisory Board0yrsno datano data

6.1yrs

Average Tenure

63yo

Average Age

Experienced Board: ITX's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Industria de Diseño Textil, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Industria de Diseño Textil, S.A.
  • Ticker: ITX
  • Exchange: BME
  • Founded: 1963
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: €98.045b
  • Shares outstanding: 3.11b
  • Website: https://www.inditex.com

Number of Employees


Location

  • Industria de Diseño Textil, S.A.
  • Edificio Inditex
  • Avenida de la Diputación s/n
  • A Coruña
  • Galicia
  • 15143
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IDEX.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDMay 2001
ITXBME (Bolsas y Mercados Espanoles)YesRegistered SharesESEURMay 2001
0QWILSE (London Stock Exchange)YesRegistered SharesGBEURMay 2001
IXDXTRA (XETRA Trading Platform)YesRegistered SharesDEEURMay 2001
IXD1DB (Deutsche Boerse AG)YesRegistered SharesDEEURMay 2001
ITXEBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURMay 2001
ITXWBAG (Wiener Boerse AG)YesRegistered SharesATEURMay 2001
ITX NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNMay 2001
ITXBIT (Borsa Italiana)YesRegistered SharesITEURMay 2001
IDEX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2009

Biography

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household textile products through various commercial concepts. Its retail concepts include Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe. The company operates 7,490 physical stores in 96 markets; and online stores in 156 markets. It is also involved in textile manufacturing, design, financial services, real estate, logistic, insurance, and combined heat and power plant, and construction businesses. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is based in A Coruña, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 20:50
End of Day Share Price2020/02/17 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.