The textile giant reaches the milestone of placing its share at 45 euros and the market capitalization exceeds 140,000 million euros MADRID, March 15. (EUROPA PRESS) –
Inditex shares have soared 10.84% ??this week, thus leading the rises of the Ibex 35 and with the stock at new all-time highs – at 45.08 euros – after announcing last Wednesday a record net profit of 5,381 million of euros, 30.3% more, in its 2023-2024 fiscal year.
Specifically, the shares of Zara’s parent company have accumulated a rise of 14.33% so far this year, exceeding 45 euros for the first time since it debuted on the stock market in 2001, while its market capitalization has been at the closing this Friday at 140,498 million euros, according to market data consulted by Europa Press.
Regarding the evolution of the stock, which is at historic highs, the CEO of Inditex, Óscar García Maceiras, stated in the appearance last Wednesday that the company’s position is always the same, even when the price falls. “We remain focused on the execution of our business model. We believe that we are a reliable value for shareholders and investors,” he stressed.
The firm registered a record net profit of 5,381 million euros in its 2023-2024 fiscal year (from February 1, 2023 to January 31, 2024), the second of Marta Ortega as president, which represents a increase of 30.3% compared to the previous year, according to the company, which will increase the dividend by 28%, to 1.54 euros per share.
The textile multinational’s sales were also a record, reaching 35,947 million euros, 10.4% more than in 2022, with an increase of 14.1% at constant exchange rates.
Sales had a “very satisfactory” evolution both in physical and online stores, positive in all geographical areas and in all formats.
The gross margin stood at 20,762 million euros, 11.9% higher than in 2022, and represents 57.8% of sales.
“Inditex’s performance in 2023 has been excellent. Our teams have been able to take advantage of opportunities to continue growing profitably. We are investing to boost future growth and continue offering attractive remuneration to shareholders,” highlighted the CEO of Inditex, Oscar García Maceiras.
Thus, the board of directors will propose to the general meeting of shareholders an increase in the dividend of 28% for the year 2023, up to 1.54 euros per share, made up of an ordinary dividend of 1.04 euros and an extraordinary dividend of 0. 50 euros per share.
The dividend is made up of two equal payments: on May 2, 2024 a payment of 0.77 euros per share, corresponding to the ordinary dividend, and on November 4, 2024 a payment of 0.77 euros per share (0.27 ordinary euros plus 0.50 euros extraordinary).
Inditex’s dividend policy consists of an ordinary payout of 60% of profits and the additional distribution of extraordinary dividends.
The operating result (Ebitda) grew by 13.9%, to 9,850 million euros, and the net operating result (Ebit) by 23.4%, to 6,809 million euros.
Most analysts have reiterated their buy recommendation on the company these days, while Goldman Sachs has been the most optimistic entity in this regard by raising the target price of the textile giant to 51 euros per share.
According to market data consulted by Europa Press, a total of 18 analysts have a ‘buy’ recommendation on the company, a dozen opt for ‘hold’ and only four (Deutsche Bank, Morningstar, Alantra and Alpha Value, which places the target price at 34 euros, the lowest of all) recommends ‘sell’.
Going into detail of those who bet favorably on the company, Goldman Sachs has reiterated its commitment to ‘buy’, although it has done so with the aforementioned nuance of raising the target price of the Inditex share from 45.5 euros to 51 euros, while, along the same lines, Jefferies has highlighted the ‘buy’ recommendation by raising the price from 44 to 49 euros.
For its part, JP Morgan recommends overweighting Inditex, which is why it has gone from valuing the company’s share from 42 to 48 euros, while Banco Santander predicts an overweight and places the target price of the title at 45 euros – having reached this Friday -, while Caixabank, although recommending ‘buy’, has maintained the target price at 42.6 euros -below this week’s closing price-.
