Inditex stock: fundamental analysis

Stocks · ITX · Consumer Cyclical

Industria de Diseño Textil, S.A., together with its subsidiaries, engages in the retail and online distribution of clothing, footwear, accessories, and household products in Spain, rest of Europe, the Americas, Asia, and internationally. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.

Data as of September 18, 2026 · Yahoo Finance

Quick read

Business quality

ROE of 36.8%: it earns a high return on shareholders' money. Out of every 100 in sales, 15.5 end up as profit.

Financial health

It holds more cash than debt (net debt/EBITDA of -0.4x): a very comfortable position.

Growth

Revenue is growing 9.1% year on year: a solid pace. Earnings are up 8.0%.

Valuation

It trades at a P/E of 25.2, above the 20.4 median of the consumer cyclical companies we track. On expected earnings the P/E falls to 21.9: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business.

Dividend

Dividend yield of 1.2% (0.65 EUR per share per year) with a payout ratio of 56.7%.

Tools

All metrics

InditexSector median
Business quality
ROE36.8%26.4%
ROA14.7%7.0%
Gross margin56.5%50.8%
Operating margin18.9%13.7%
Net margin15.5%8.4%
Financial health
Net debt/EBITDA-0.4x2.5x
Debt/equity0.3x0.6x
Current ratio1.2x1.2x
Growth
Revenue growth9.1%7.4%
Earnings growth8.0%8.0%
Valuation
P/E ratio25.2x20.4x
Forward P/E21.9x18.7x
EV/EBITDA16.1x15.4x
Price/book9.0x7.0x
FCF yield4.0%3.6%
Dividend
Dividend yield1.2%3.1%
Payout ratio56.7%59.7%
Beta (volatility)0.9x1.0x

Frequently asked questions

What is Inditex's P/E ratio?

Inditex's P/E is 25.2 based on trailing 12-month earnings and 21.9 on expected earnings. The median for its sector among the companies we track is 20.4. Data as of September 18, 2026.

What dividend does Inditex pay?

Dividend yield of 1.2% (0.65 EUR per share per year) with a payout ratio of 56.7%.

Is Inditex stock expensive?

It trades at a P/E of 25.2, above the 20.4 median of the consumer cyclical companies we track. On expected earnings the P/E falls to 21.9: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business. This is an educational reading based on ratios, not a buy or sell recommendation.

Does Inditex have a lot of debt?

It holds more cash than debt (net debt/EBITDA of -0.4x): a very comfortable position.

What is Inditex's market cap?

Inditex has a market cap of 161.2B EUR and its shares trade at 51.74 EUR, with a 52-week range of 44.34 EUR to 59.42 EUR (data as of September 18, 2026).

Other companies in the sector

Trailing 12-month metrics. Educational content, not investment advice.