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Industria de Diseño Textil, S.A.

ITX.MC
64
Apparel - Retail · Consumer Cyclical
Price
€53.74
-0.54 (-0.99%)
Market Cap
€167.31B
Exchange
Madrid Stock Exchange
Winston Score
64
Winston is curious
A decent business — some strong pillars, some weaker.

Inditex is a Spanish clothing company that designs, makes, and sells fashion for men, women, and children. Its most famous brand is Zara, which is known for moving new styles from design to store shelves in just a few weeks. The company also owns other brands like Massimo Dutti, Pull&Bear, Bershka, and Zara Home, selling to everyday shoppers across the world.

Inditex makes money by selling clothes and accessories directly through its own stores and website, keeping most of the supply chain in-house to stay fast and flexible. It operates roughly 5,700 stores across about 90 countries, making it one of the largest fashion retailers on the planet. Its main competitive edge is speed — getting trendy styles to customers faster than most rivals — but it faces ongoing risks from rising production costs, shifting consumer spending, and growing competition from low-cost online fashion platforms like Shein.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+10.9% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

64.4%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$11.4B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Industria de Diseño Textil, S.A. is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.1% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 3.11B (2022) → 3.12B (2026)

Score breakdown

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Quality

Gross Margin
48.1%
Healthy — 48.1% gross margin
Operating Margin
17.6%
Healthy — 17.6% operating margin
ROCE
10.1%
Below par — 10.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+10.2%
Steady sales growth (10.2% YoY)
EPS YoY
+4.7%
Modest earnings growth (4.7% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
84%
Modest — 84% of profit becomes cash
FCF Margin
9.8%
Modest free cash flow (9.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.00
Conservative — low debt load (0.00)
Interest Cover
36.84x
Comfortably covers interest (36.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
26.9x
Growth-priced — P/E 26.9

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+6.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (26.9 → 20.9)

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Dividends

Dividend Yield
3.17%
Moderate income — 3.17% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+47.0%
Dividend growing fast (47.0% YoY)

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