#Inditex - Conviction BUY (long-term)

ENTRY: 21.00 EUR
TARGET: 29.50 EUR (+40%)
STOP: 17.60 EUR

Inditex is one of the largest textile companies in the world, based in Arteixo / Galicia (Spain). Inditex specializes in the design, manufacture and distribution of clothing and accessories for men, women and children. Zara is the best-known brand of the group, which also includes Pull&Bear and Bershka.

Inditex saw slower sales growth in the final quarter due to new Covid restrictions, but sees rising earnings and a strong business recovery at the start of the new fiscal year. Last year, the Spanish fashion chain with brands such as Zara, Massimo Dutti and Bershka significantly increased sales, net profit almost tripled and margins improved significantly.

From a technical analysis perspective, we are at a support level. All signs indicate a bounce and thus a recovery of the chart.

According to the current valuation, the fair price (if there is such a thing :-) ) of the share is between EUR 29 and 30.


Estimated financial data (EUR)

YEAR 2022
Sales 2022 = 27,931 million
Net income 2022 = 3 646 million
Net liquidity 2022 = 8 446 million
P/E ratio 2022 = 18.0x
Dividend yield 2022 = 4.82

YEAR 2023
Sales 2023 = 28 855 mn
Net income 2023 = 3,626 million
Net liquidity 2023 = 10 468 million
P/E ratio 2023 = 18.1x
Dividend yield 2023 = 5.23
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