Delta Brands (DLTI) AI Stock Analysis

• Market Cap: 2.80B
• Dividend Yield: 3.12%
• Average Volume (3M): 25.74K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.82
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 1,213
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 115.70
• Shares Outstanding: 25,022,850
• 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: 12,854.00 ▲(12.75% 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

Revenue Growth

Consistent revenue growth indicates a positive trajectory, reflecting effective market strategies and strong product demand in the health-conscious consumer segment.

Cash Generation

Improved cash generation capabilities enhance financial flexibility, enabling Delta Brands to invest in growth opportunities and manage debt effectively.

Profitability

High profitability margins demonstrate efficient cost management and strong pricing power, supporting long-term financial stability and shareholder value.

Negative Factors

Rising Debt Levels

Increased leverage could pose financial risks if not managed properly, potentially impacting the company's ability to invest in growth or weather economic downturns.

Operational Efficiency

Declining operational efficiency may indicate rising costs or competitive pressures, which could affect profitability if not addressed through strategic initiatives.

Lack of Earnings Call Insights

The absence of recent earnings call insights limits transparency and investor understanding of management's strategic direction and operational performance.

Delta Brands Business Overview & Revenue Model

Company Description

Delta Brands (DLTI) is a consumer products company specializing in the development and marketing of innovative personal care and wellness products. Operating primarily in the health and beauty sector, Delta Brands offers a diverse range of items including skincare, haircare, and nutritional supplements. The company focuses on leveraging unique formulations and high-quality ingredients to cater to a growing market of health-conscious consumers.

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: 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 above the 20-day moving average (MA) of 11016.40, above the 50-day MA of 10664.62, and above the 200-day MA of 9078.37, indicating a bullish trend. The MACD of 223.54 indicates Positive momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 51.65 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	4.76B	15.45	10.63%	2.45%	2.95%	-14.16%
DLTI	76 Outperform	2.80B	17.95	―	3.12%	―	―
GSFI	69 Neutral	424.90M	4.89	―	12.27%	-12.59%	-50.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AVGL	43 Neutral	397.49M	-28.62	―	―	4.79%	-789.71%