Rankings Food, drinks & restaurants Inditex
Inditex
75
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- Multiples vs own history−4
- The Middle East and costs−3
- Quality of growth−2
Strengths
- Net cash+2
- Pricing power+2
- Strong trading after the period+1
How the score is built
From 100 to 75, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 57.50 EUR
- Median analyst target
- 61.00 EUR
- Upside to median
- +6.1%
- Analysts
- 24
- Target range
- 41.50 – 67.00 EUR
- 52-week change
- +20%
- P/E (trailing)
- 28.0
- Forward P/E
- 25.4
- PEG
- 2.63
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 2 findings−3 of −30
- −2Quality of growthRevenue growth has slowed from 17.5% (FY2022) and 10.4% (FY2023) to 7.5% and only 3.2% in FY2025; H1 2026 +7.6% (9.2% at constant exchange rates). Growth comes with fewer stores, so it depends on larger stores and online rather than new markets.
- −1Capital allocationCapital expenditure has doubled from EUR 1.03bn (FY2022) to EUR 2.2bn a year (logistics expansion) plus EUR 0.2bn extraordinary for a Barcelona campus; FCF was flat at EUR 7.0–7.1bn in FY2024–FY2025, even though operating profit rose 11%.
Price
Today's multiples against the company's own history and its peers. · 2 findings−6 of −35
- −4Multiples vs own historyTrailing P/E 25.9 vs. 21.6–28.0 in FY2022–FY2025 and forward P/E 23.5 vs. 21.0–25.9; P/S 4.0 vs. 2.7–4.3; P/B 9.3 is the highest in the period (5.2–8.4). The price is in the upper half of a range that has itself risen sharply since 2022, while growth has slowed.
- −2FCF yieldFCF after lease payments (8.27 − 1.87 bn EUR) is about EUR 6.4bn, equal to an FCF yield of about 3.9% of the market cap of EUR 166bn – vs 5.9–7.3% before leases in FY2022–FY2024.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−8 of −35
- −3The Middle East and costsThe Q2 profit disappointed because the conflict in the Middle East increased freight costs; operating costs rose 8.3% vs sales of 7.6%, the gross margin in Q2 was 56.7% vs a higher expectation, and the stock fell about 3%. Around 480 franchise stores are located in the Middle East.
- −2CompetitionShein and Temu undercut Zara, H&M and Mango with young, price-sensitive customers; Shein had revenue of about 41.8 bn USD in 2025 and has thus nearly caught up with Inditex, which responds by moving Zara upmarket.
- −2Controlling shareholderThe Ortega family's Pontegadea controls about 59% of the shares, so minority shareholders have limited influence, and free float is only about 1.1 bn of 3.1 bn shares.
- −1Supply chainUnlike H&M and Primark, Inditex does not publish its full supplier list, and investors are pressing for transparency, so risks in the factory chain (working conditions, forced labour) are hard to assess.
Plus
Only documented strengths. · 3 findings+5 of +15
- +2Net cashNet cash of EUR 4.2bn (10.4bn in cash vs 6.2bn in debt, largely leases); interest cover 22x.
- +2Pricing powerGross margin rose 40 bp to a record 58.7% in H1 2026 despite higher freight costs, and has risen from 54.7% in FY2022 to 56.3% in FY2025; ROIC 46%.
- +1Strong trading after the periodIn-store and online sales at constant exchange rates rose 9% from 1 Aug to 7 Sept 2026, so H1's growth level (9.2%) has been maintained into the autumn season.
Caveats
What the score does not capture, or where the data is weak.
Fiscal year Feb–Jan (FY2025 = year to 31 Jan 2026). Stockanalysis' FCF of 8.27 bn EUR is before lease payments of 1.87 bn EUR (IFRS 16); FCF after leases is about 6.4 bn EUR, and the dividend (5.34 bn) plus buybacks (0.16 bn) are below that. EV/EBITDA is also inflated by lease depreciation. The share count is effectively unchanged (the buyback of 161 m EUR covers employee shares), so no plus has been given for buybacks. The insider share of 5% at stockanalysis is wrong: Pontegadea (Ortega) owns about 59%. Price targets were updated after the H1 results on 9 Sept. Industry: no apparel category in the list – nearest chosen.
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