Delta Brands (DLTI) AI Stock Analysis

• Market Cap: ₪2.65B
• Dividend Yield: 3.08%
• Average Volume (3M): 25.74K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.85
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 1,213
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 224.70
• Shares Outstanding: 25,025,097
• 10 Day Avg. Volume: 17,876
• 30 Day Avg. Volume: 25,738
• PEG Ratio: -4.33
• Price to Book (P/B): 5.67
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 12.25
• 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: 58 Neutral
• Price Target: 11,939.00 ▲(4.73% Upside)
• Action: Downgraded Date: 02/22/26
• Date: Action: Downgraded 02/22/26

The score is primarily driven by solid operating performance and improved cash flow, tempered by a materially more leveraged balance sheet and weakening margins. Technical indicators remain decisively weak, while valuation and the dividend offer moderate support but do not offset the current momentum and balance-sheet risk.

Positive Factors

Strong Revenue Growth

Sustained high top-line growth (62% in 2025) indicates solid product-market fit and expanding distribution. Over 2-6 months this supports durable market-share gains, greater retailer leverage, and a base to scale marketing and R&D spend while amortizing fixed costs.

Improved Cash Generation

A meaningful rebound in operating and free cash flow provides persistent internal funding for working capital, capex, and marketing. Improved cash generation improves self-funding ability and reduces near-term reliance on external financing over the medium term.

Diversified Distribution & Marketing

An omnichannel model—direct e-commerce, major retail partnerships, and influencer/health professional collaborations—creates multiple durable revenue streams, reduces single-channel concentration risk, and supports repeat customer acquisition and brand visibility.

Negative Factors

Material Increase in Leverage

A sharp step-up in leverage meaningfully reduces balance-sheet flexibility and raises interest and refinancing risk. In a cyclical consumer sector, higher debt makes the business more sensitive to sales volatility and limits strategic optionality over the medium term.

Margin Compression

Profitability fell even as revenue jumped, implying cost pressure, mix shifts, or pricing strain. Persistent margin erosion would limit the company’s ability to convert growth into sustainable profits and cash, weakening long-term return on invested capital.

Inconsistent Cash Conversion

Volatile free cash flow and sub‑1.0 FCF-to-net-income suggest earnings don’t reliably convert to cash, exposing the company to working-capital swings. This undermines capacity to service higher debt and fund growth without repeating external financing.

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

Strong recent revenue growth and generally healthy profitability, with a notable rebound in operating cash flow and free cash flow. Offsetting this, margins compressed in 2025 versus 2024 and leverage rose sharply (debt-to-equity ~1.71), increasing financial risk.

Income Statement

Revenue growth has been strong recently (2024: ~26%, 2025: ~62%), supporting solid profitability with healthy TTM-like annual margins (2025 gross margin ~51%, EBIT margin ~16%, net margin ~12%). However, profitability has not scaled with revenue: 2025 margins compressed versus 2024 (gross, EBIT, EBITDA, and net margins all down), and net income declined despite the big top-line jump—suggesting higher costs, pricing pressure, or mix changes.

Balance Sheet

Leverage has increased materially: debt-to-equity rose from ~0.65–0.79 (2023–2024) to ~1.71 in 2025, reflecting a large step-up in debt. While the company has a meaningful equity base and asset growth, the sharper reliance on debt reduces balance-sheet flexibility and increases sensitivity to earnings volatility in a cyclical apparel environment.

Cash Flow

Cash generation improved in 2025 with operating cash flow rising to ~294M and free cash flow to ~245M, a strong rebound versus 2024 (FCF ~111M). That said, cash conversion is not consistently strong: free cash flow has been volatile year to year, and in 2025 both operating cash flow and free cash flow were below net income (free cash flow to net income ~0.83), indicating not all earnings are translating into cash at the same pace.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.30B	1.19B	945.88M	918.77M	906.12M
Gross Profit	666.47M	721.92M	566.19M	533.05M	558.72M
EBITDA	326.48M	319.07M	176.34M	151.25M	202.70M
Net Income	151.63M	158.73M	116.05M	96.87M	138.31M
Balance Sheet
Total Assets	1.43B	1.16B	1.20B	960.18M	972.61M
Cash, Cash Equivalents and Short-Term Investments	202.93M	125.93M	346.91M	330.23M	356.07M
Total Debt	901.78M	369.65M	373.46M	233.04M	242.69M
Total Liabilities	896.54M	692.16M	623.87M	451.92M	517.50M
Stockholders Equity	528.61M	470.58M	571.78M	508.25M	455.12M
Cash Flow
Free Cash Flow	244.64M	111.34M	125.69M	86.90M	194.10M
Operating Cash Flow	293.71M	209.81M	185.88M	102.52M	205.76M
Investing Cash Flow	-50.48M	-98.47M	164.08M	-241.76M	-11.46M
Financing Cash Flow	-166.07M	-332.32M	-107.13M	-112.75M	161.78M

Delta Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11400.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:DLTI, the sentiment is Negative. The current price of 11400 is below the 20-day moving average (MA) of 12721.39, below the 50-day MA of 12780.41, and above the 200-day MA of 10232.32, indicating a neutral trend. The MACD of -779.09 indicates Positive momentum. The RSI at 31.79 is Neutral, neither overbought nor oversold. The STOCH value of 10.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:DLTI.

Delta Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSFI	76 Outperform	₪465.29M	5.36	―	12.33%	-12.59%	-50.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTI	58 Neutral	₪2.65B	17.46	―	3.08%	―	―
DELG	57 Neutral	₪3.99B	13.55	10.63%	2.47%	2.95%	-14.16%
AVGL	47 Neutral	₪375.82M	-54.66	―	―	4.79%	-789.71%