Delta Galil (DELG) AI Stock Analysis

• Market Cap: ₪3.99B
• Dividend Yield: 2.47%
• Average Volume (3M): 18.20K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.96
• Revenue Growth: 2.95%
• EPS Growth: -14.16%
• Country: IL
• Employees: 25,510
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 305.70
• Shares Outstanding: 26,224,310
• 10 Day Avg. Volume: 15,749
• 30 Day Avg. Volume: 18,204
• PEG Ratio: 2.88
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 12.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: 17,160.00 ▼(-6.69% Downside)
• Action: Downgraded Date: 02/19/26
• Date: Action: Downgraded 02/19/26

The score is driven by solid underlying profitability and generally positive cash generation, but is held back by the sharp 2025 revenue decline and a notable 2025 debt increase. Technicals are bearish (price below key moving averages with negative MACD), while a reasonable P/E and moderate dividend yield provide partial support.

Positive Factors

Consistent profitability and recent net income improvement

Sustained profitability and rising net income through 2025 indicate durable underlying margins and operational resilience. This supports internal reinvestment, dividend capacity and ability to service obligations, giving the company flexibility to navigate apparel cycles and support long-term shareholder returns.

Positive operating and free cash flow in recent years

Consistent positive operating and free cash flow across 2023–2025 creates a durable source of internal funding. Reliable cash generation underpins working capital, capex and dividends, and provides capacity to reduce debt or invest in efficiency, strengthening long-term financial stability.

Diversified business model: private-label, branded and licensed segments

A mix of private-label manufacturing and owned/licensed brands spreads revenue risk and leverages manufacturing scale. Long-term retailer relationships and brand channels support recurring demand, margins from branded sales, and operational flexibility versus single-channel peers.

Negative Factors

Sharp revenue decline in 2025

A steep revenue drop in 2025 signals demand sensitivity and weak top-line momentum, reducing operating leverage and pressuring margins and cash flows. If sustained, it can force margin compression, cutbacks or pricing changes and hamper long-term growth prospects and investment plans.

Material increase in total debt and higher leverage in 2025

A marked rise in debt raises financial risk and interest burdens, reducing balance-sheet flexibility. Higher leverage constrains capital allocation, increases vulnerability to cyclical downturns in retail apparel, and limits ability to pursue strategic investments or absorb shocks over the medium term.

Volatile cash flow and declining free cash flow in 2024–2025

Wobbly cash flow conversion and falling free cash flow erode the reliability of internal funding. This volatility complicates debt reduction and capital planning, increasing reliance on external financing during downturns and undermining sustained investment in brands and manufacturing capacity.

Delta Galil Business Overview & Revenue Model

Company Description

Delta Galil Industries Ltd. engages in the design, development, production, marketing, and sale of men and women apparel products worldwide. It operates through Brands, Private Label, Delta Israel, Seven for All Mankind, and other segments. The Brands segment operates brands, such as Schiesser, Eminence, Splendid, PJ Salvage, and company licensed brands comprising Columbia, Tommy Hilfiger, and Polo Ralph Lauren, Adidas, Wolford, and others, in underwear , leisure wear, and sleep wear categories. The Private Label segment operates private labels in category of underwear, leisure wear, and sleep wear under Nike, Victoria's Secret, Walmart, Target, and other brands. The Delta Israel segment design, develop, and markets branded undergarments for women and men, sleepwear, socks, children clothing products under Delta and Fix brands and distributes through stores in Israel and websites, as well as retails and wholesales its products. The Seven for All Mankind segment operates clothing in the Denim category for women, men, and children. The Other segment operates Bare Necessities and Organic Basics brands. Delta Galil Industries Ltd. was incorporated in 1975 and is headquartered in Caesarea, Israel.

How the Company Makes Money

Delta Galil generates revenue primarily through the sale of its apparel products to various retailers and brands, both under its own brands and as private-label goods. Key revenue streams include wholesale sales to large retail partners, where the company provides complete lines of apparel, and direct-to-consumer sales through its own e-commerce platforms. Significant partnerships with major retailers and brands enhance its market reach and contribute to steady revenue streams. Additionally, Delta Galil benefits from its global manufacturing capabilities, enabling cost-effective production and supply chain efficiencies that improve profitability.

Delta Galil Financial Statement Overview

Summary

Profitability has been consistently positive and net income improved into 2025, supported by generally positive operating and free cash flow. Offsetting this, revenue fell sharply in 2025 and leverage increased materially in 2025 as total debt rose sharply, raising financial risk and reducing flexibility.

Income Statement

Profitability has been consistently positive since 2021, with net income rising from 2023 to 2025 and healthy gross profit generation. Margins have generally been stable in the mid-single digits at the net level (where provided), supporting solid operating performance. The main weakness is growth volatility: revenue fell sharply in 2025 (after modest growth in 2024 and a dip in 2023), highlighting demand/cycle sensitivity in the business.

Balance Sheet

The company has a meaningful equity base, but leverage has increased notably in 2025 as total debt rose sharply versus 2024 while assets and equity grew more moderately. Historically, leverage improved from 2020’s high levels, but the recent debt step-up raises financial risk and reduces balance-sheet flexibility. Returns on equity were solid in 2021–2024 (where provided), but the higher debt load is the key watch item.

Cash Flow

Cash generation is generally supportive: operating cash flow has been positive in most years and free cash flow is positive again in 2023–2025. However, cash flow quality has been uneven—2022 saw weak operating cash flow and negative free cash flow, and free cash flow declined in 2024 and 2025 (growth negative in both years). Overall, cash flow covers the business but shows volatility that warrants monitoring.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.29B	2.05B	1.86B	2.03B	1.95B
Gross Profit	874.93M	856.29M	760.60M	785.19M	776.71M
EBITDA	298.71M	239.97M	235.01M	215.92M	218.37M
Net Income	91.89M	86.41M	79.21M	109.48M	112.78M
Balance Sheet
Total Assets	2.08B	1.88B	1.79B	1.85B	1.77B
Cash, Cash Equivalents and Short-Term Investments	135.80M	120.51M	174.46M	190.91M	230.13M
Total Debt	911.03M	521.09M	549.14M	614.78M	544.46M
Total Liabilities	1.18B	1.08B	1.02B	1.14B	1.13B
Stockholders Equity	872.79M	779.41M	737.89M	682.07M	623.43M
Cash Flow
Free Cash Flow	118.31M	96.22M	177.83M	-24.12M	136.37M
Operating Cash Flow	204.65M	203.02M	230.81M	31.53M	166.53M
Investing Cash Flow	-177.01M	-104.01M	8.55M	-116.04M	-32.96M
Financing Cash Flow	-25.17M	-148.85M	-194.51M	-6.83M	-134.30M

Delta Galil Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18390.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:DELG, the sentiment is Negative. The current price of 18390 is above the 20-day moving average (MA) of 16528.26, above the 50-day MA of 16968.64, and above the 200-day MA of 17446.92, indicating a bearish trend. The MACD of -483.83 indicates Positive momentum. The RSI at 38.03 is Neutral, neither overbought nor oversold. The STOCH value of 26.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:DELG.

Delta Galil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFRLF	73 Outperform	₪183.72M	9.32	6.83%	14.02%	-19.40%	-67.56%
ECP	66 Neutral	₪1.96B	23.44	―	3.01%	3.83%	―
CAST	66 Neutral	₪950.21M	8.91	―	22.30%	9.88%	-2.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DLTI	58 Neutral	₪2.65B	17.46	―	3.08%	―	―
DELG	57 Neutral	₪3.99B	13.55	10.63%	2.47%	2.95%	-14.16%