Delta Galil (DELG) AI Stock Analysis

• Market Cap: ₪4.42B
• Dividend Yield: 2.47%
• Average Volume (3M): 18.20K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.94
• 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: 26,150,953
• 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 strong financial performance with substantial revenue and cash flow growth. The company maintains a healthy balance sheet with improved leverage ratios and consistent profitability. While operational margins have slightly decreased, the overall financial health remains robust, positioning the company well for future growth.

Income Statement

Delta Galil shows a strong revenue growth rate of 61.56% in the TTM, indicating robust expansion. The gross profit margin is healthy at 41.69%, and the net profit margin is stable at 4.21%. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.72, reflecting better leverage management. Return on equity is consistent at 11.09%, indicating steady profitability. The equity ratio is solid, showing a strong equity base relative to total assets. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Free cash flow growth is impressive at 143.85% in the TTM, highlighting significant cash generation capabilities. The operating cash flow to net income ratio is 0.29, suggesting efficient cash conversion. However, the free cash flow to net income ratio has decreased, indicating potential areas for improvement in cash management.

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	314.28M	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: Negative
• Last Price: 18390.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 17218.00, above the 50-day MA of 17679.20, and above the 200-day MA of 17641.04, indicating a neutral trend. The MACD of -172.09 indicates Negative momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 36.02 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
DELG	76 Outperform	₪4.42B	14.33	10.63%	2.47%	2.95%	-14.16%
DLTI	76 Outperform	₪3.54B	22.68	―	3.08%	―	―
TFRLF	73 Outperform	₪189.39M	9.65	6.83%	14.02%	-19.40%	-67.56%
ECP	66 Neutral	₪2.33B	27.73	―	3.01%	3.83%	―
CAST	66 Neutral	₪1.21B	11.39	―	22.30%	9.88%	-2.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%