Spanish stock alert

SPAIN

CLOSING UPDATE: Inditex Group recovers losses by 1.0%, led market lower 18 June 2018 21:01 CEST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's Spanish market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Inditex Group, Spain's largest retailer/wholesaler company by market capitalisation, has decreased 1.1% to trade at EUR29.59 vs. the IBEX 35 Index which weakened 81.6 points (or 0.8%) to 9,769.4. Representing a weighting of about 14.8% of the index, the stock accounted for 20.2% of today's loss. Trading volume was 57% of average at the end of the day. Compared with the IBEX 35 Index which fell 81.6 points (or 0.8%) in the day, this represented a relative price change of -0.3%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Year-on-Year Earnings Growth of 6.9% [8.0%]

Bearish Signals:

+ Tobin's Q Ratio is 4.6. Compared with the rest of the market the stock is overvalued and ranks in the bottom 5% of stocks by value of Q Ratio.

Note

Inditex Group today is at a discount of 15.1% to the 12-month high of EUR34.85 on 20 Jun, 2017. It is at a premium of 30.6% to the 12-month low of EUR22.66 on 14 Mar, 2018.

Bullish Signals:

The positive 0.82 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

Interest cover is less leveraged at 116.6 times.

Total Liabilities/EBITDA of 1.6 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 13.6% in the last 3 years. This is better than the sector average of 13.5% and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity is high at 25.0%. Also, this has improved from 24.9% last year.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Price/Earnings/Growth of 2.6 [3.5]

TODAY'S ALERT

Afternoon Alert: Inditex Group drops 2.1%, leads market lower

18 June 2018 14:40 CEST

Inditex Group (MA:ITX) has dropped 2.1% to trade at EUR29.29 vs. the IBEX 35 Index which weakened 123.9 points (or 1.3%) to 9,727.1. Representing a weighting of about 14.7% of the index, the stock accounted for 24.9% of today's loss. Trading volume was 46% of average so far today.

RECENT ALERTS

CLOSING UPDATE: Inditex Group keeps rising: up 6.2% in 4 days

14 June 2018 21:00 CEST

Inditex Group, Spain's largest retailer/wholesaler company by market capitalisation, extended its gains on Thursday, rising an additional 9.0c (or 0.3%) to trade at EUR30.03. Trading volume was 1.7 times average at the end of the day. The shares have risen EUR1.74 (or 6.2%) over the past four trading days vs. the IBEX 35 Index which has risen 2.2% in the same period.

Afternoon Alert: Inditex Group increases 0.5%, leads market higher

14 June 2018 14:40 CEST

Inditex Group (MA:ITX) has increased 0.5% to trade at EUR30.08 vs. the IBEX 35 Index which strengthened 13.2 points (or 0.1%) to 9,912.3. Representing a weighting of about 14.8% of the index, the stock accounted for 53.2% of today's gain. The shares have outperformed 91% of the market in the past week. Trading volume was 2.0 times average so far today.

Inditex Group (MA:ITX; MCE:ITX; MC:ITX; SM:ITX)

ISIN: ES0148396007

PermID: 4295889432

Source: www.BuySellSignals.com