Tefron (TFRLF) AI Stock Analysis

• Market Cap: 277.67M
• Dividend Yield: 9.63%
• Average Volume (3M): 71.60K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.13
• Revenue Growth: 4.36%
• EPS Growth: -7.43%
• Country: IL
• Employees: 1,977
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.47
• Shares Outstanding: 12,802,025
• 10 Day Avg. Volume: 16,397
• 30 Day Avg. Volume: 71,602
• PEG Ratio: -0.09
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.98
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: 1.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: 2,543.00 ▲(16.33%Upside)

Tefron scores a robust 78.5, driven by its strong financial performance and attractive valuation. The company's financials reflect stability and growth, with efficient cost management and improved leverage. Although technical indicators present a mixed outlook, the low P/E ratio and high dividend yield make it an appealing investment, especially for value and income-focused investors.

Tefron Business Overview & Revenue Model

Company Description

Tefron Ltd. (TFRLF) is an Israeli-based company that operates in the textiles and apparel industry. The company specializes in the design, development, manufacturing, and marketing of seamless intimate apparel, active wear, and leisurewear. Tefron's core products include bras, panties, shapewear, sleepwear, and performance-oriented sportswear, which are distributed to leading global brands and retailers.

How the Company Makes Money

Tefron Ltd. generates revenue primarily through the sale of its textile and apparel products. The company operates in the B2B segment, supplying high-performance and fashion-focused garments to well-known brands and retailers worldwide. Tefron's revenue streams are driven by its manufacturing capabilities, which include advanced seamless knitting technology and a vertically integrated production process, allowing for cost-effective and high-quality product offerings. Additionally, strategic partnerships with prominent global fashion and sportswear brands significantly contribute to the company's earnings, as these collaborations help Tefron reach a broader market and enhance its brand reputation.

Tefron Financial Statement Overview

Summary

Tefron presents a compelling financial profile with strong revenue growth and solid profitability metrics. The company has improved its leverage position and maintains robust cash flow generation. While Free Cash Flow has declined, the overall financial health remains strong, positioning the company well for future growth and stability.

Income Statement

Tefron has demonstrated strong revenue growth with a Revenue Growth Rate of 20.7% from 2023 to 2024. Gross Profit Margin and Net Profit Margin are healthy at 22.6% and 5.1% respectively for 2024, indicating efficient cost management. The EBIT Margin of 8.1% and EBITDA Margin of 10.6% further highlight operational efficiency. Overall, the income statement reflects robust growth and stable profitability.

Balance Sheet

The company's Debt-to-Equity Ratio has improved to 0.16 in 2024, indicating a strong deleveraging trend. The Return on Equity (ROE) is favorable at 19.7%, suggesting effective use of equity. The Equity Ratio stands at 51.3%, reflecting a solid equity base. However, the company should continue to monitor its leverage to maintain financial stability.

Cash Flow

Tefron's Free Cash Flow Growth Rate of -43.8% from 2023 to 2024 indicates a decline, but the Free Cash Flow remains positive at $21.9 million. The Operating Cash Flow to Net Income Ratio is strong at 2.0, and the Free Cash Flow to Net Income Ratio is 1.45, demonstrating strong cash flow generation relative to net income. The cash flow statement indicates healthy cash generation capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
293.86M	243.46M	222.31M	261.35M	180.00M
	Gross Profit
66.48M	55.14M	49.12M	53.78M	34.31M
	EBIT
23.74M	19.54M	13.94M	18.88M	8.61M
	EBITDA
31.12M	25.83M	19.40M	23.85M	12.95M
	Net Income Common Stockholders
15.11M	10.93M	7.45M	14.35M	4.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.22M	3.70M	3.69M	3.50M	8.28M
	Total Assets
149.79M	140.84M	155.24M	150.77M	108.20M
	Total Debt
12.09M	24.80M	58.97M	45.25M	36.31M
	Net Debt
5.88M	21.48M	55.28M	41.75M	28.03M
	Total Liabilities
73.00M	77.66M	103.09M	106.76M	80.81M
	Stockholders Equity
76.79M	63.18M	52.15M	44.00M	27.39M
Cash Flow		Free Cash Flow
21.89M	38.98M	-6.81M	-7.51M	798.00K
	Operating Cash Flow
30.91M	46.38M	-4.00M	-3.17M	3.65M
	Investing Cash Flow
-9.03M	-7.01M	-2.82M	-3.40M	-2.73M
	Financing Cash Flow
-18.89M	-39.73M	7.00M	1.79M	3.51M

Tefron Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2186.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TFRLF, the sentiment is Negative. The current price of 2186 is below the 20-day moving average (MA) of 2239.35, above the 50-day MA of 2185.22, and below the 200-day MA of 2858.21, indicating a neutral trend. The MACD of -9.25 indicates Positive momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 14.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:TFRLF.

Tefron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFRLF	79 Outperform	277.67M	5.87	17.75%	9.63%	4.36%	-7.43%
CAST	77 Outperform	1.22B	8.73		5.08%	―	―
DELG	68 Neutral	$4.41B	12.87	12.07%	2.54%	11.14%	2.93%
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
AVGL	51 Neutral	439.34M	100.68		―	7.20%	-65.65%

Tefron Corporate Events

Tefron Announces Changes in Securities Registry Through Option Exercise

Tefron has announced a change in its capital structure through the exercise of employee options, affecting the corporation’s securities registries. This adjustment involves a decrease in the holder’s balance of non-tradable options managed by IBI Trust Management, reducing from 234,946 to 232,963. The corporation noted this change occurred between February 1 and February 18, 2025, and it has implications for the registry of securities holders, aligning with the corporation’s ongoing management of its employee option program.

Michael Goldenblatt Reduces Stake in Tefron

Tefron announced that Michael Goldenblatt has ceased to be an interested party in the corporation following the sale of his ordinary shares on the stock exchange. The reduction in Goldenblatt’s holdings signifies a change in the ownership structure of Tefron, which may affect its market dynamics and stakeholder interests.

Change in Shareholder Status for Tefron

Michael Goldenblatt has ceased to be an interested party in Tefron after selling 674 ordinary shares on the stock exchange, reducing his stake. This change, effective February 13, 2025, was reported on February 16, 2025, indicating a shift in shareholder composition for the company.

Tefron’s Ownership Structure: Key Stakeholders and Holdings Detailed

Tefron has released a report detailing the holdings of interested parties and senior officers as of February 16, 2025. The report highlights that Litef Holdings Inc holds a majority of regular shares with a significant percentage of capital and voting power, while other entities like Spiral Hedge Funds Ltd and Ayalon Investment House Ltd also maintain notable holdings. Senior officers hold non-tradable options with minimal impact on capital and voting percentages. This report provides transparency into the corporation’s current ownership structure, potentially influencing investor perceptions and strategic decisions regarding corporate governance.

Tefron’s Ownership Structure: Key Stakeholders and Shareholding Details Revealed

Tefron has released an immediate report on the status of holdings by interested parties and senior officeholders in the company. As of February 11, 2025, the majority shareholders, Litef Holdings Inc and Spiral Hedge Funds Ltd, hold significant shares of ordinary stock at 59.85% and 6.42%, respectively. Senior officeholders, such as Michael Goldenblatt and Gregory Dodson, primarily hold non-tradable options with minimal ordinary shareholdings. The report outlines the detailed breakdown of ownership percentages for both current and fully diluted capital and voting rights, emphasizing the significant control by major shareholders and the limited direct equity held by senior executives. This information reflects the company’s ownership dynamics and potential influence on corporate decisions by key stakeholders.

Tefron Announces Changes in Senior Office Holder’s Shareholdings

Tefron has reported changes in the holdings of its senior office holder, Michael Goldenblatt, who is not an interested party by virtue of holdings. The changes involve a reduction in ordinary shares due to sales on the stock exchange in two separate transactions. The transactions have led to a decrease in Goldenblatt’s holdings, but his holding rate remains at 0.01% in both capital and voting power. This development indicates a minor adjustment in Tefron’s stakeholder structure, with no significant impact on the overall control or operations of the company.