source : google finance
· 1- Inditex is relatively indexed to the market with
a beta of 0.6, reason why it has had a good exit from the crisis, where the
turnover grows monstrously and from the year 2015 is re-contracting employees.
· 2- The operating
margin is quite high, as it is not a capital intensive company.
· 3- Within the liquidity ratio is increasing
although far from being 1, which would indicate good capacity to pay. The 0.44
means that the current asset is 0.44 larger than the current liability, it can
meet its short-term obligations. The same thing happens when I analyze the
solvency ratio that indicates that the asset is 0.91 times the liability.
· 4- As
regards the guarantee ratio, it exceeds 1.5, which is considered optimal level,
and means the ability of the company to deal with creditors and lenders, its
formula is demandable assets / liabilities.
r
RECOMENDATION
· The
recommendation on the company is to maintain with a target price that stands at
25.9 euros, slightly below the levels at which it is currently listed.
· Dividend profitability has increased while
being very attractive to the market
Consequence
of the EPS, the P/E is having a bearish
trend, so we expect certain growths of the shares to return to their original
P/E.
·
The
business growth rate is around 8.5% per year, a large figure that is equal to
or even higher than the sector
·
Inditex
cup 67%, followed by the Irish chain Primark, with 14.2%; The Swedish H &
M, with 11.4%, and the Spanish Mango, with 7.2%
BUY
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