Delta Galil (DELG) AI Stock Analysis

• Market Cap: 4.80B
• Dividend Yield: 2.42%
• Average Volume (3M): 18.20K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.99
• Revenue Growth: 2.95%
• EPS Growth: -14.16%
• Country: IL
• Employees: 25,510
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 374.10
• Shares Outstanding: 26,127,846
• 10 Day Avg. Volume: 15,749
• 30 Day Avg. Volume: 18,204
• PEG Ratio: 1.56
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 14.85
• 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: 76 Outperform
• Price Target: 20,790.00 ▲(13.05% Upside)

Delta Galil's strong financial performance, characterized by robust revenue and cash flow growth, is the most significant factor driving the stock score. The technical analysis indicates a neutral trend, while the valuation suggests the stock is fairly valued with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The strong revenue growth rate reflects the company's successful market expansion and product demand, supporting long-term business sustainability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling Delta Galil to invest in growth opportunities and manage debt effectively.

Balance Sheet Health

Improved leverage management strengthens the balance sheet, providing stability and reducing financial risk, crucial for long-term growth.

Negative Factors

Margin Pressure

Decreasing margins suggest operational inefficiencies, which could impact profitability if not addressed, potentially hindering growth.

Earnings Decline

A decline in earnings per share reflects challenges in maintaining profitability, which may affect investor confidence and future investments.

Cash Management

Decreased cash flow efficiency could limit the company's ability to reinvest in growth, necessitating improved cash management strategies.

Delta Galil Business Overview & Revenue Model

Company Description

Delta Galil Industries Ltd. is a global manufacturer and marketer of branded and private-label apparel products, specializing in intimates, activewear, socks, and sleepwear. Founded in 1975 and headquartered in Tel Aviv, Israel, the company operates through several segments, including Delta Galil USA, Delta Galil Europe, and Delta Galil Asia. Its diverse portfolio caters to a wide range of customers, including leading retail chains, department stores, and e-commerce platforms, making it a prominent player in the textile and apparel industry.

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

Delta Galil demonstrates solid profitability with stable leverage, but faces challenges in revenue growth and cash flow management. The company should focus on reversing revenue contraction and enhancing cash flow generation to strengthen its financial position.

Income Statement

Delta Galil's income statement shows a stable gross profit margin around 41.7% in TTM, with a slight decline in net profit margin to 4.2%. Revenue growth is negative at -6.2% in TTM, indicating a contraction compared to previous periods. EBIT and EBITDA margins are healthy, though slightly declining. Overall, the company maintains profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.72 in TTM, indicating manageable leverage. Return on equity is stable at 11%, suggesting efficient use of equity. The equity ratio is not explicitly calculated but appears stable given the consistent stockholders' equity growth. Overall, the balance sheet is solid but shows room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -32.6% in TTM, indicating potential liquidity concerns. The operating cash flow to net income ratio is 0.29, suggesting moderate cash generation relative to net income. Free cash flow to net income ratio is 0.33, indicating some cash flow challenges. Overall, cash flow management requires attention to improve liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.38B	2.05B	1.86B	2.03B	1.95B	1.45B
Gross Profit	1.44B	856.29M	760.60M	785.19M	776.71M	523.68M
EBITDA	197.04M	239.97M	235.01M	215.92M	218.37M	85.77M
Net Income	155.19M	86.41M	79.21M	109.48M	112.78M	-39.85M
Balance Sheet
Total Assets	6.65B	1.88B	1.79B	1.85B	1.77B	1.69B
Cash, Cash Equivalents and Short-Term Investments	350.06M	120.51M	174.46M	190.91M	230.13M	230.84M
Total Debt	614.03M	521.09M	549.14M	614.78M	544.46M	735.56M
Total Liabilities	3.74B	1.08B	1.02B	1.14B	1.13B	1.22B
Stockholders Equity	2.82B	779.41M	737.89M	682.07M	623.43M	476.78M
Cash Flow
Free Cash Flow	136.11M	96.22M	177.83M	-24.12M	136.37M	196.96M
Operating Cash Flow	260.27M	203.02M	230.81M	31.53M	166.53M	218.41M
Investing Cash Flow	-137.70M	-104.01M	8.55M	-116.04M	-32.96M	-34.77M
Financing Cash Flow	-91.76M	-148.85M	-194.51M	-6.83M	-134.30M	-67.88M

Delta Galil Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18390.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 18390 is above the 20-day moving average (MA) of 18087.99, above the 50-day MA of 18340.83, and above the 200-day MA of 17821.80, indicating a bullish trend. The MACD of -76.10 indicates Positive momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 44.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:DELG.

Delta Galil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DELG	76 Outperform	4.80B	15.61	10.63%	2.42%	2.95%	-14.16%
DLTI	76 Outperform	2.85B	18.28	―	3.06%	―	―
TFRLF	73 Outperform	200.95M	10.25	6.83%	13.30%	-19.40%	-67.56%
ECP	66 Neutral	2.60B	30.96	―	2.92%	3.83%	―
CAST	66 Neutral	1.25B	11.74	―	20.96%	9.88%	-2.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOX	61 Neutral	4.82B	19.89	14.11%	3.88%	15.89%	-2.68%