Delta Brands (DLTI) AI Stock Analysis

• Market Cap: ₪3.54B
• Dividend Yield: 3.08%
• Average Volume (3M): 25.74K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.89
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 1,213
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 148.70
• Shares Outstanding: 25,025,097
• 10 Day Avg. Volume: 17,876
• 30 Day Avg. Volume: 25,738
• PEG Ratio: 0.26
• Price to Book (P/B): 3.29
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 13.92
• 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: 16,574.00 ▲(45.39% Upside)

Delta Brands receives a strong overall score due to its robust financial performance and positive technical indicators. The company's solid revenue growth and profitability, combined with bullish market momentum, are significant strengths. The fair valuation and attractive dividend yield further support the stock's appeal. However, increased leverage and the absence of recent earnings call insights are areas to monitor.

Positive Factors

Free cash flow growth

Sustained FCF growth near 44% TTM signals durable cash generation from operations. This strengthens the company’s ability to fund R&D, marketing, debt reduction, and dividends without relying on external financing, improving long-term financial flexibility and resilience.

High gross and net margins

A high gross margin (59.6%) and healthy net margin (12.0%) indicate strong product economics and pricing power likely tied to unique formulations and brand positioning. Durable margins provide cushion versus input cost swings and support reinvestment in growth and marketing.

Diversified go-to-market channels

Multi-channel distribution—e‑commerce, major retailer partnerships and influencer collaborations—reduces customer concentration risk and expands reach. This omnichannel model supports sustained customer acquisition, repeat sales, and resilience to single-channel disruptions.

Negative Factors

Rising leverage

Debt-to-equity rising to ~1.01 increases financial risk and interest obligations. Higher leverage limits strategic flexibility, raises refinancing risk in tightening credit cycles, and can amplify earnings volatility if revenue growth slows, pressuring long-term stability.

Margin pressure on EBIT/EBITDA

Eroding EBIT/EBITDA margins suggest rising operating costs or heavier promotional/activity spending. If persistent, these trends could erode operating leverage, reduce free cash flow conversion, and force trade-offs between margin restoration and growth investments.

Modest top-line expansion

Revenue growth around 3.8% TTM is modest for a consumer health/beauty player and may reflect competitive pressure or limited category expansion. Slower top-line gains constrain scale economies and make EPS and balance sheet improvements more reliant on margin and cost initiatives.

Delta Brands Business Overview & Revenue Model

Company Description

Delta Israel Brands Ltd. engages in the design, marketing, and sale of clothing and lingerie products in Israel. It offers lingerie for women, innerwear for men and children, home wear, sleepwear, sports and leisure clothing, children's clothing, socks, and footwear under the Delta and Fix brands. The company sells its products through company operated stores, as well as stores operated by external operators. It also sells its products to large retail chains, private stores, and small chains. The company was incorporated in 2020 and is based in Caesarea, Israel. Delta Israel Brands Ltd. operates as a subsidiary of Delta Galil Industries Ltd.

How the Company Makes Money

Delta Brands generates revenue through multiple channels, primarily by selling its products directly to consumers via e-commerce platforms and retail partnerships. The company has established key relationships with major retailers, which facilitate wider distribution of its product lines. Additionally, Delta Brands invests in marketing strategies that enhance brand visibility and consumer engagement, driving sales growth. Revenue is further supplemented by collaborations with influencers and health professionals that promote its products, thus attracting a loyal customer base and increasing repeat purchases.

Delta Brands Financial Statement Overview

Summary

Delta Brands is performing well with strong revenue growth and profitability. While there is an increase in leverage, the company maintains a high return on equity and strong cash flow generation. Continued focus on operational efficiency and debt management will be crucial for sustaining growth.

Income Statement

Delta Brands shows a solid revenue growth rate of 3.81% TTM, indicating a positive trajectory. The gross profit margin is strong at 59.55%, and the net profit margin is healthy at 12.01%. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.01 TTM, indicating higher leverage, which could pose a risk if not managed properly. However, the return on equity remains robust at 32.41%, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Delta Brands exhibits a strong free cash flow growth rate of 44.44% TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 0.67, indicating efficient conversion of income to cash. The free cash flow to net income ratio is also solid at 0.60, demonstrating good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.19B	945.88M	918.77M	906.12M	720.32M
Gross Profit	769.08M	721.92M	566.19M	533.05M	558.72M	433.27M
EBITDA	269.54M	319.07M	176.34M	151.25M	202.70M	138.99M
Net Income	155.98M	158.73M	116.05M	96.87M	138.31M	89.50M
Balance Sheet
Total Assets	1.28B	1.16B	1.20B	960.18M	972.61M	523.14M
Cash, Cash Equivalents and Short-Term Investments	172.91M	125.93M	346.91M	330.23M	356.07M	-232.82M
Total Debt	475.67M	369.65M	373.46M	233.04M	242.69M	521.74M
Total Liabilities	783.36M	692.16M	623.87M	451.92M	517.50M	466.68M
Stockholders Equity	498.36M	470.58M	571.78M	508.25M	455.12M	56.47M
Cash Flow
Free Cash Flow	194.37M	111.34M	125.69M	86.90M	194.10M	206.88M
Operating Cash Flow	248.40M	209.81M	185.88M	102.52M	205.76M	214.24M
Investing Cash Flow	-53.60M	-98.47M	164.08M	-241.76M	-11.46M	-7.00M
Financing Cash Flow	-149.88M	-332.32M	-107.13M	-112.75M	161.78M	-207.24M

Delta Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11400.00
• 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:DLTI, the sentiment is Positive. The current price of 11400 is below the 20-day moving average (MA) of 13904.50, below the 50-day MA of 12341.96, and above the 200-day MA of 9968.03, indicating a bullish trend. The MACD of 634.52 indicates Positive momentum. The RSI at 64.69 is Neutral, neither overbought nor oversold. The STOCH value of 72.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:DLTI.

Delta Brands 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%
GSFI	76 Outperform	₪475.05M	5.47	―	12.33%	-12.59%	-50.32%
DLTI	76 Outperform	₪3.54B	22.68	―	3.08%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AVGL	43 Neutral	₪385.02M	-27.30	―	―	4.79%	-789.71%