Delta Brands (DLTI) AI Stock Analysis

• Market Cap: 3.28B
• Dividend Yield: 3.08%
• Average Volume (3M): 25.74K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.87
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 1,213
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• 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: 14,793.00 ▲(29.76% 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 Generation

Sustained, high free cash flow growth strengthens Delta Brands' ability to fund product development, marketing, and debt servicing without equity raises. Reliable cash conversion supports reinvestment and shareholder returns, enhancing long-term financial flexibility and resilience.

High Return on Equity

A persistently high ROE indicates efficient use of shareholders' capital to generate profits. This suggests management effectively deploys resources into profitable product lines and distribution, supporting sustainable earnings power and long-term shareholder value creation.

Strong Gross and Net Margins

Robust gross and net margins reflect pricing power, favorable product mix, and cost control in health and beauty products. High structural margins provide a buffer against input cost variability and support durable profitability across economic cycles.

Negative Factors

Rising Leverage

Elevated leverage raises interest and refinancing risk, narrowing strategic flexibility over time. If revenue or margins soften, higher debt levels could constrain investment, increase fixed costs, and pressure credit metrics, making capital structure management critical.

Compression in Operating Margins

Eroding EBIT/EBITDA margins suggest growing cost or efficiency pressures that can persist absent corrective actions. Structural margin compression would reduce cash flow available for growth and debt servicing, weakening long-term profitability and investment capacity.

Lack of Forward Guidance / Recent Call Detail

Absence of recent earnings call details and guidance reduces visibility into management's near-term plans and capital allocation priorities. Over months this can hinder investor confidence and makes assessing strategic execution and risk mitigation more difficult.

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 exhibits strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet is stable, though increasing debt levels warrant attention. Cash flow generation is robust, supporting the company's operational and strategic initiatives.

Income Statement

Delta Brands shows a solid performance with a consistent revenue growth rate of 2.6% in the TTM, supported by a strong gross profit margin of 59.6%. The net profit margin remains healthy at 12.5%, although slightly lower than the previous year. The EBIT and EBITDA margins are robust, indicating efficient operational management. However, the slight decline in margins compared to the previous year suggests potential cost pressures.

Balance Sheet

The company's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.92 in the TTM. Return on equity is strong at 31.5%, indicating effective use of equity capital. However, the rising debt levels over the years could pose a risk if not managed carefully, especially in a volatile market environment.

Cash Flow

Delta Brands demonstrates positive cash flow dynamics with a 12.8% growth in free cash flow in the TTM. The operating cash flow to net income ratio is healthy at 0.70, suggesting good cash generation relative to earnings. The free cash flow to net income ratio of 0.54 indicates a solid conversion of earnings into cash, although there is room for improvement.

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: Negative
• RSI: Negative
• STOCH: Negative

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 12037.00, above the 50-day MA of 11284.74, and above the 200-day MA of 9444.26, indicating a bullish trend. The MACD of 578.23 indicates Negative momentum. The RSI at 80.40 is Negative, neither overbought nor oversold. The STOCH value of 90.77 is Negative, 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	4.55B	14.78	10.63%	2.47%	2.95%	-14.16%
GSFI	76 Outperform	525.05M	6.05	―	12.33%	-12.59%	-50.32%
DLTI	76 Outperform	3.28B	21.04	―	3.08%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AVGL	43 Neutral	406.99M	-28.85	―	―	4.79%	-789.71%