Industria de Diseno Textil SA
🇪🇸 ITX.MC · Madrid · ES0148396007
Consumer
EUR 50.80 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
25.5
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 50.80 ÷ 2.00 = 25.5
TTM period through: 2026-01-31
Forward P/E (estimated): 23.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 25.4
Yield (Fwd)
1.28%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 2.34%
Net Debt/EBITDA (TTM)
0.1x
Latest quarter: 0.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-01-31
Latest quarter (2026-01-31): 0.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
32.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 84.2%
Cash Flow Payout (TTM): 56.7%
FCF Coverage (TTM): 1.25x
ROE
31.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
12.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Inditex is a world-class fashion retailer with exceptional operational efficiency and a pristine balance sheet. However, as a discretionary retail business facing an announced massive 57.7% dividend cut and trading at an elevated P/E of 25.46, it represents a fundamental mismatch for conservative dividend strategies. Not recommended for new positions, as the low yield and sector volatility outweigh the underlying business quality.
Sector Context
Inditex is a global fashion retailer that designs, manufactures, and sells apparel under well-known brands such as Zara. For conservative dividend investing, the fashion sector is generally avoided due to its reliance on discretionary consumer spending and constantly shifting trends, lacking the predictable and essential cash flows found in utilities or infrastructure.
📊 Strategy Analysis
- • Exceptional balance sheet strength with a Net Debt/EBITDA of 0.06x and a low Debt/Equity ratio of 0.29.
- • Proven historical track record with 10-year revenue growth (5.5% CAGR) and excellent profitability marked by a 31.05% ROE.
⚠ What to Watch
- • Operates in the fashion retail sector, which is explicitly avoided in this strategy due to reliance on highly cyclical, discretionary consumer spending.
- • Management has proposed a massive 57.7% dividend cut for 2026, severely compromising the income reliability required for a dividend portfolio.
- • Current valuation is highly elevated with a P/E of 25.46, well outside the strategy's target range of 8-15x.
- • The trailing dividend yield of 2.34% and forward yield of 1.28% fall significantly short of the 3% minimum requirement.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.