Delta Galil (DELG) AI Stock Analysis

• Market Cap: $4.64B
• Dividend Yield: 2.47%
• Average Volume (3M): 18.20K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.02
• 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: 26,117,182
• 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: 1.37
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 32.00
• 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: 63 Neutral
• Price Target: 18,851.00 ▲(4.32% Upside)

Delta Galil's overall stock score is primarily influenced by its solid financial performance, despite challenges in revenue growth and cash flow management. The technical analysis indicates a bearish trend, which impacts the score negatively. Valuation is fair, providing a moderate score. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Profitability

Stable profitability indicates effective cost management and pricing strategy, supporting long-term financial health and competitive positioning.

Global Manufacturing Capabilities

Global manufacturing allows for cost efficiencies and supply chain optimization, enhancing competitive advantage and margin sustainability.

Market Reach

Strong partnerships expand market access and customer base, driving consistent revenue streams and reinforcing market position.

Negative Factors

Revenue Growth Challenges

Sluggish revenue growth can hinder expansion and market share gains, necessitating strategic initiatives to stimulate sales and innovation.

Cash Flow Concerns

Weak cash flow growth limits reinvestment capacity and financial flexibility, potentially impacting long-term operational resilience.

Net Profit Margin Decline

Decreasing net profit margins may signal rising costs or pricing pressures, challenging profitability and necessitating cost control measures.

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

Delta Galil demonstrates solid profitability with stable gross profit margins and manageable leverage. However, it faces challenges in revenue growth, with a negative growth rate of -6.2%, and cash flow management, as indicated by a decline in free cash flow growth by -32.6%.

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	2.09B	2.05B	1.86B	2.03B	1.95B	1.45B
Gross Profit	872.32M	856.29M	760.60M	785.19M	776.71M	523.68M
EBITDA	199.05M	239.97M	235.01M	215.92M	218.37M	85.77M
Net Income	88.05M	86.41M	79.21M	109.48M	112.78M	-39.85M
Balance Sheet
Total Assets	1.96B	1.88B	1.79B	1.85B	1.77B	1.69B
Cash, Cash Equivalents and Short-Term Investments	88.69M	120.51M	174.46M	190.91M	230.13M	230.84M
Total Debt	597.77M	521.09M	549.14M	614.78M	544.46M	735.56M
Total Liabilities	1.11B	1.08B	1.02B	1.14B	1.13B	1.22B
Stockholders Equity	826.04M	779.41M	737.89M	682.07M	623.43M	476.78M
Cash Flow
Free Cash Flow	55.82M	96.22M	177.83M	-24.12M	136.37M	196.96M
Operating Cash Flow	170.84M	203.02M	230.81M	31.53M	166.53M	218.41M
Investing Cash Flow	-110.14M	-104.01M	8.55M	-116.04M	-32.96M	-34.77M
Financing Cash Flow	-145.16M	-148.85M	-194.51M	-6.83M	-134.30M	-67.88M

Delta Galil Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18070.00
• 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 Neutral. The current price of 18070 is below the 20-day moving average (MA) of 18505.86, above the 50-day MA of 18059.51, and above the 200-day MA of 17930.10, indicating a neutral trend. The MACD of -20.01 indicates Positive momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 68.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:DELG.

Delta Galil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLTI	75 Outperform	2.50B	16.04	―	3.19%	―	―
TFRLF	73 Outperform	$183.93M	9.38	6.83%	15.06%	-19.40%	-67.56%
FOX	69 Neutral	$4.59B	19.40	14.11%	3.83%	15.89%	-2.68%
DELG	63 Neutral	$4.64B	15.09	10.63%	2.47%	2.95%	-14.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CAST	61 Neutral	1.70B	17.15	―	19.35%	9.88%	-2.72%
ECP	57 Neutral	2.43B	28.83	―	3.20%	3.83%	―