Delta Brands (DLTI) AI Stock Analysis

• Market Cap: 2.50B
• Dividend Yield: 3.12%
• Average Volume (3M): 25.74K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.79
• 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: 25,022,140
• 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: 75 Outperform
• Price Target: 11,554.00 ▲(3.35% Upside)

Delta Brands scores well due to its strong financial performance and positive technical indicators. The stock's valuation is reasonable, supported by a healthy dividend yield. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Delta Brands' ability to expand its market presence and adapt to consumer demands, ensuring long-term business sustainability.

Cash Flow Generation

Strong cash flow growth supports Delta Brands' operational and strategic initiatives, providing financial flexibility for future investments and stability.

Profitability Margins

High profitability margins reflect efficient cost management and pricing power, enhancing Delta Brands' competitive position and financial health.

Negative Factors

Rising Debt Levels

Increasing debt may strain Delta Brands' financial resources, potentially impacting its ability to invest in growth opportunities and manage economic downturns.

Margin Pressure

Decreasing margins could indicate rising costs or competitive pricing pressures, which may affect Delta Brands' profitability if not addressed.

Balance Sheet Risk

While the current debt-to-equity ratio is manageable, the trend of rising debt could increase financial risk, limiting Delta Brands' ability to navigate market volatility.

Delta Brands Business Overview & Revenue Model

Company Description

Delta Brands (DLTI) is a diversified consumer products company that specializes in developing, marketing, and distributing a wide range of innovative products across various sectors, including health and wellness, personal care, and household goods. The company focuses on enhancing the quality of everyday life through its portfolio of brands, which includes both proprietary products and licensed offerings. Delta Brands aims to leverage its expertise in product development and marketing to meet the evolving needs of consumers in a competitive marketplace.

How the Company Makes Money

Delta Brands generates revenue through multiple streams, primarily by selling its consumer products directly to retailers and through e-commerce platforms. The company's revenue model is built around a combination of wholesale and retail sales, allowing it to reach a broad customer base. Key revenue streams include product sales across its various categories, which are supported by strategic partnerships with retailers and distributors. Additionally, Delta Brands may engage in licensing agreements for certain products, providing an additional source of income. The company also focuses on innovative marketing strategies to boost brand visibility and consumer engagement, which contributes to its overall sales growth.

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	1.24B	1.19B	945.88M	918.77M	906.12M	720.32M
Gross Profit	740.61M	721.92M	566.19M	533.05M	558.72M	433.27M
EBITDA	235.63M	319.07M	176.34M	151.25M	202.70M	138.99M
Net Income	149.36M	158.73M	116.05M	96.87M	138.31M	89.50M
Balance Sheet
Total Assets	1.22B	1.16B	1.20B	960.18M	972.61M	523.14M
Cash, Cash Equivalents and Short-Term Investments	137.14M	125.93M	346.91M	330.23M	356.07M	-232.82M
Total Debt	479.31M	369.65M	373.46M	233.04M	242.69M	521.74M
Total Liabilities	752.17M	692.16M	623.87M	451.92M	517.50M	466.68M
Stockholders Equity	472.45M	470.58M	571.78M	508.25M	455.12M	56.47M
Cash Flow
Free Cash Flow	134.57M	111.34M	125.69M	86.90M	194.10M	206.88M
Operating Cash Flow	225.24M	209.81M	185.88M	102.52M	205.76M	214.24M
Investing Cash Flow	-90.24M	-98.47M	164.08M	-241.76M	-11.46M	-7.00M
Financing Cash Flow	-332.36M	-332.32M	-107.13M	-112.75M	161.78M	-207.24M

Delta Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11180.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 11180 is above the 20-day moving average (MA) of 10648.34, above the 50-day MA of 10218.68, and above the 200-day MA of 8803.86, indicating a bullish trend. The MACD of 134.98 indicates Negative momentum. The RSI at 60.37 is Neutral, neither overbought nor oversold. The STOCH value of 71.36 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
DLTI	75 Outperform	2.50B	16.04	―	3.12%	―	―
GSFI	66 Neutral	421.60M	4.85	―	12.74%	-12.59%	-50.32%
DELG	63 Neutral	$4.64B	15.09	10.63%	2.47%	2.95%	-14.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
AVGL	46 Neutral	415.30M	―	―	―	4.79%	-789.71%