Inditex becomes one of the ‘red lanterns’ of the session. The textile giant corrected more than 3.1% on the stock market, which brought it to a price of 34.6 euros per share, after presenting record results. Thus, it complies with the behavior previously experienced on the day of the presentation of results, when it usually registers falls. During its first fiscal semester, the company has increased its profit by 40%, to 2,531 million, a figure that has been accompanied by a 14.1% improvement in gross margin and is close to 10,000 million. The focus is on sales, which reached 16,851 million, 13.5% more.
In this sense, Javier Molina, market analyst at eToro, highlights that investors are already “discounting positive expectations about the company’s future performance”, a decision that implies greater risk if these forecasts are not met, if one takes into account Keep in mind that the market estimates an Earnings Per Share (EPS) of 1.33 this year and a PER of 25 times. Molina highlights that although Inditex demonstrates “much more stable” growth compared to other firms in the textile sector, doubts may arise from its ability to remain a leader over time and whether it will be able to prolong scalability in a “quick and efficient” manner.
In parallel, Bankinter highlights that “despite the expected slowdown in the coming quarters, good cost control together with the ability to raise prices defend margins at historical high levels”, while highlighting the “high” growth potential under the umbrella of the new investment plan. “The generation of free cash flow will remain resilient and a strong net cash position, greater than 10.5 billion, will allow for a continuous improvement in shareholder remuneration,” they clarify.
As a negative point, Bankinter highlights the slight slowdown in quarterly sales, since while between August and September 11 these have increased by 14%, during the first five weeks of the previous quarter, which began in May, they increased by 16%. %. Jefferies, for its part, points to inflationary pressures or competition as one of the main risks.
After the blow it is suffering today, Inditex’s dividend yield has increased slightly above 4%. With a potential of less than 8%, one of the lowest in the Ibex 35, the firm’s attractiveness among analysts has increased in the stock market ‘back to school’, since more than six out of ten recommend including this value in portfolio, compared to 3.7% who only bet on selling. These data come after the group has healed its stock market wound after the departure of Pablo Isla and exceeded 100 billion in capitalization.
