INDITEX

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.

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      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