Companies/Consumer Discretionary/ZARA.NLB

ZARA.NLB—60

Industria de Diseno Textil SA

Apparel & Accessories RetailersVerified

Score breakdown

Profitability+35Sentiment+30Risk penalty-3Missing signals-3

Quality breakdown

Key fields100Profile38Conclusion98AI synthesis40Observations23

Inditex maintains a strong capital structure with a debt-to-equity ratio of 0.29, indicating a relatively low reliance on debt financing [doc:ZARA.NLB]. The company's liquidity position is characterized as medium, with cash and equivalents amounting to EUR 2.85 billion, while long-term debt stands at EUR 5.93 billion [doc:ZARA.NLB]. Free cash flow of EUR 1.41 billion suggests the company has sufficient liquidity to fund operations and potentially return value to shareholders [doc:ZARA.NLB]. Profitability metrics highlight Inditex's strong performance, with a return on equity of 30.5% and a return on assets of 17.45% [doc:ZARA.NLB]. These figures exceed the typical benchmarks for the Apparel & Accessories Retailers industry, indicating efficient use of equity and assets to generate returns [doc:ZARA.NLB]. The company's operating income of EUR 7.997 billion and net income of EUR 6.22 billion further underscore its profitability [doc:ZARA.NLB]. Inditex operates through three primary segments: Zara, Bershka, and Others, with Zara being the dominant brand in terms of revenue contribution [doc:ZARA.NLB]. The company's geographic exposure is broad, with operations in 95 countries and a presence in approximately 215 markets [doc:ZARA.NLB]. This diversification helps mitigate regional economic risks and supports stable revenue streams [doc:ZARA.NLB]. The company's growth trajectory is supported by a robust revenue base of EUR 39.864 billion and a positive outlook for the current and next fiscal years [doc:ZARA.NLB]. Analysts have provided a mean price target of EUR 58.73, with a median of EUR 60.00, reflecting confidence in the company's future performance [doc:ZARA.NLB]. The company's capital expenditure of EUR -2.712 billion indicates a focus on optimizing existing assets rather than significant new investments [doc:ZARA.NLB]. Risk factors for Inditex include medium liquidity risk and a potential for dilution, although the latter is currently assessed as low [doc:ZARA.NLB]. The company's net cash position is negative after subtracting total debt, which could impact its ability to fund operations without external financing [doc:ZARA.NLB]. However, the company's strong free cash flow and low dilution risk suggest it is well-positioned to manage these challenges [doc:ZARA.NLB]. Recent events and filings indicate a stable business environment for Inditex, with no significant disruptions reported in the latest financial data [doc:ZARA.NLB]. The company's strategic focus on its core brands and global expansion continues to drive its performance [doc:ZARA.NLB].

Profile

CompanyIndustria de Diseno Textil SA

TickerZARA.NLB

SectorConsumer Cyclicals

BusinessRetailers

Industry groupRetailers

IndustryApparel & Accessories Retailers

AI analysis

Business. Industria de Diseno Textil SA, known as Inditex SA, designs, manufactures, and retails apparel, footwear, and fashion accessories for men, women, and children, as well as home furnishings and household textile products through its eight global brands, including Zara, Bershka, and Pull&Bear [doc:ZARA.NLB].

Classification. Inditex is classified under the Consumer Cyclicals economic sector, Retailers business sector, and Apparel & Accessories Retailers industry with a confidence level of 0.92 [doc:ZARA.NLB].

Key takeaways

Inditex maintains a strong capital structure with a low debt-to-equity ratio of 0.29.
The company's profitability is robust, with a return on equity of 30.5% and a return on assets of 17.45%.
Inditex's geographic diversification across 95 countries supports stable revenue streams.
Analysts have a positive outlook, with a mean price target of EUR 58.73 and a median of EUR 60.00.
The company's liquidity position is medium, with a free cash flow of EUR 1.41 billion.
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Financial snapshot

PeriodHA-latest

CurrencyEUR

Revenue$39.86B

Gross profit$23.22B

Operating income$8.00B

Net income$6.22B

R&D—

SG&A—

D&A—

SBC—

Operating cash flow$9.23B

CapEx-$2.71B

Free cash flow$1.41B

Total assets$35.64B

Total liabilities$15.24B

Total equity$20.39B

Cash & equivalents$2.85B

Long-term debt$5.93B

Annual history (last 5)

PeriodRevenueOp IncomeNet IncomeFCF

FY0$39.86B$8.00B$6.22B$1.41B

FY-1$38.63B$7.55B$5.87B$1.41B

FY-2$35.95B$6.81B$5.38B$2.68B

FY-3$32.57B$5.52B$4.13B$2.59B

FY-4$27.72B$4.28B$3.24B$2.78B

PeriodGross %Op %Net %FCF %

FY0————

FY-1————

FY-2————

FY-3————

FY-4————

PeriodAssetsEquityCashDebt

FY0$35.64B$20.39B$2.85B—

FY-1$34.71B$19.68B$4.88B—

FY-2$32.73B$18.64B$4.62B—

FY-3$29.98B$17.01B$3.03B—

FY-4$28.95B$15.73B$3.43B—

PeriodOCFCapExFCFSBC

FY0$9.23B-$2.71B$1.41B—

FY-1$9.29B-$2.67B$1.41B—

FY-2$8.67B-$1.87B$2.68B—

FY-3$6.67B-$1.42B$2.59B—

FY-4$6.75B-$1.13B$2.78B—

Quarterly history (last 4)

PeriodRevenueOp IncomeNet IncomeFCF

FQ0$11.69B$2.05B$1.60B—

FQ-1$9.81B$2.37B$1.83B—

FQ-2$10.08B$1.93B$1.49B—

FQ-3$8.27B$1.64B$1.30B—

FQ-4$11.21B$1.88B$1.42B—

FQ-5$9.36B$2.13B$1.68B—

FQ-6$9.91B$1.91B$1.48B—

FQ-7$8.15B$1.64B$1.29B—

PeriodGross %Op %Net %FCF %

FQ0————

FQ-1————

FQ-2————

FQ-3————

FQ-4————

FQ-5————

FQ-6————

FQ-7————

PeriodAssetsEquityCashDebt

FQ0$35.64B$20.39B$5.28B—

FQ-1$36.83B$18.80B$5.95B—

FQ-2$34.05B$16.95B$5.14B—

FQ-3$34.78B$18.06B$5.97B—

FQ-4$34.71B$19.68B$6.38B—

FQ-5$36.09B$18.14B$8.27B—

FQ-6$33.25B$16.51B$5.95B—

FQ-7$33.97B$17.52B$7.67B—

PeriodOCFCapExFCFSBC

FQ0$9.23B-$2.71B——

FQ-1————

FQ-2$3.35B-$1.27B——

FQ-3————

FQ-4$9.29B-$2.67B——

FQ-5————

FQ-6$4.05B-$1.28B——

FQ-7————

Valuation

Market price—

Market cap—

Enterprise value—

P/E—

Reported non-GAAP P/E—

EV/Revenue—

EV/Op income—

EV/OCF—

P/B—

P/Tangible book—

Tangible book$20.39B

Net cash-$3.09B

Current ratio—

Debt/Equity0.3

ROA17.4%

ROE30.5%

Cash conversion1.5%

CapEx/Revenue-6.8%

SBC/Revenue—

Asset intensity—

Dilution ratio0.0%

Risk assessment

Dilution riskLow

Liquidity riskMedium

Net cash is negative after subtracting total debt.

Industry benchmarks

Activity: Retailers · cohort 2 companies

MetricZARA.NLBActivity

Op margin20.1%20.7% medp25 18.7% · p75 22.8%below median

Net margin15.6%15.6% medp25 13.4% · p75 17.7%above median

Gross margin58.3%31.0% medp25 19.6% · p75 40.5%top quartile

R&D / revenue—0.4% medp25 0.4% · p75 0.4%

CapEx / revenue-6.8%4.6% medp25 3.2% · p75 5.9%bottom quartile

Debt / equity29.0%39.3% medp25 19.7% · p75 97.3%below median

Observations

IR observations

Mean price target58.73 EUR

Median price target60.00 EUR

High price target67.00 EUR

Low price target50.50 EUR

Mean recommendation2.13 (1=strong buy, 5=strong sell)

Strong-buy count6.00

Buy count16.00

Hold count8.00

Sell count1.00

Strong-sell count0.00

Mean EPS estimate2.19 EUR

Last actual EPS2.00 EUR

Source data

Underlying data the analysis-pipeline pulls and audits. Fetch timestamps + content hashes show when each source was last refreshed.

Company fundamentalsperiod FQ-7 · history via verified-market-data

no public URL

2026-05-01 02:46 UTC#6f73947d

Source: analysis-pipeline (hybrid)Generated: 2026-05-01 02:48 UTCJob: 270daddb