Inditex is a multibrand fashion conglomerate, founded in 1985. Zara is its flagship brand (including Zara Home), generating just over 70% of revenue and 75% of profits. Other brands include Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Uterque. The company operates through 5,800-plus stores globally, over 1,800 of them belonging to the Zara brand. Sixty-five percent of revenue is generated in the European home market, while the Americas and Asia contribute 20% and 14%, respectively. The company keeps design in house while mostly outsourcing manufacturing (own manufacturing constitutes only a low-single-digit percentage of output). Over 50% of sourcing factories are in proximity to the company's headquarters in Spain.

Financial Strength

9/10

Name	Current	Vs Industry
Cash-To-Debt	1.99
Equity-to-Asset	0.57
Debt-to-Equity	0.31
Debt-to-EBITDA	0.57
Interest Coverage	25.51
Piotroski F-Score	7/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	8.66	Distress Grey Safe
Beneish M-Score	-2.74	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

9/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	20.7
	3-Year EBITDA Growth Rate	29.9
	3-Year EPS without NRI Growth Rate	70.3
	3-Year FCF Growth Rate	43.2
	3-Year Book Growth Rate	8.7
	Future 3-5Y EPS without NRI Growth Rate	9.12
	Future 3-5Y Total Revenue Growth Rate	14.45

Momentum Rank

3/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	85.02
	9-Day RSI	71.02
	14-Day RSI	66.62
	6-1 Month Momentum %	31.39
	12-1 Month Momentum %	35.86

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1.79
	Quick Ratio	1.46
	Cash Ratio	1.28
	Days Inventory	84.9
	Days Sales Outstanding	9
	Days Payable	179.95

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	1.89
	Dividend Payout Ratio	0.48
	3-Year Dividend Growth Rate	31.5
	Forward Dividend Yield %	2.31
	5-Year Yield-on-Cost %	2.45
	Shareholder Yield %	1.92

Profitability Rank

8/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	57.75
	Operating Margin %	19.23
	Net Margin %	14.97
	FCF Margin %	18.52
	ROE %	31.65
	ROA %	16.86
	ROIC %	30.75
	ROC (Joel Greenblatt) %	55.38
	ROCE %	32.55
	Years of Profitability over Past 10-Year	10

GF Value Rank

3/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	29
	Forward PE Ratio	23.92
	PE Ratio without NRI	29
	Shiller PE Ratio	36.65
	Price-to-Owner-Earnings	18.33
	PEG Ratio	2.64
	PS Ratio	4.35
	PB Ratio	8.36
	Price-to-Tangible-Book	8.47
	Price-to-Free-Cash-Flow	22.98
	Price-to-Operating-Cash-Flow	18.03
	EV-to-EBIT	18.89
	EV-to-Forward-EBIT	18.46
	EV-to-EBITDA	13.45
	EV-to-Forward-EBITDA	12.8
	EV-to-Revenue	3.76
	EV-to-Forward-Revenue	3.53
	EV-to-FCF	19.2
	Price-to-Projected-FCF	2.26
	Price-to-DCF (Earnings Based)	2
	Price-to-DCF (FCF Based)	0.85
	Price-to-Median-PS-Value	1.13
	Price-to-Peter-Lynch-Fair-Value	2.58
	Price-to-Graham-Number	3.19
	Price-to-Net-Current-Asset-Value	75.51
	Earnings Yield (Greenblatt) %	5.3
	FCF Yield %	4.83
	Forward Rate of Return (Yacktman) %	14.44

GF Value: MXN668.28

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