Tefron (TFRLF) AI Stock Analysis

• Market Cap: 189.77M
• Dividend Yield: 14.02%
• Average Volume (3M): 17.84K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.04
• Revenue Growth: -19.40%
• EPS Growth: -67.56%
• Country: IL
• Employees: 1,977
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.47
• Shares Outstanding: 12,810,394
• 10 Day Avg. Volume: 35,826
• 30 Day Avg. Volume: 17,837
• PEG Ratio: 0.18
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 5.16
• 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: 73 Outperform
• Price Target: 2,437.00 ▲(63.23% Upside)

Tefron's strong valuation metrics are the most significant positive factor, indicating potential undervaluation and appealing dividends. Despite robust profitability and a solid financial structure, inconsistencies in revenue growth and cash flow volatility present risks. Technical analysis shows neutral trends, lacking strong momentum or clear direction.

Tefron Business Overview & Revenue Model

Company Description

Tefron Ltd. engages in the design, development, production, marketing, and sale of intimate apparel and activewear, and leisurewear worldwide. The company operates in two segments, Brands and Retail. It offers women's intimate, and active and lounge wear; and men's underwear, activewear, and baselayer products. The company was incorporated in 1977 and is headquartered in Misgav, Israel.

How the Company Makes Money

Tefron Ltd. generates revenue primarily through the sale of its textile and apparel products. The company manufactures seamless garments using advanced knitting technologies, which are then sold to major retail brands and private labels across various markets. Key revenue streams include direct sales contracts with large retailers, collaborative partnerships with fashion brands for exclusive product lines, and the development of private label products for clients. Tefron's ability to produce high-quality, innovative garments efficiently contributes significantly to its earnings. Additionally, the company's focus on automation and technology-driven manufacturing processes helps optimize production costs and enhance profitability.

Tefron Financial Statement Overview

Summary

Tefron presents a robust financial profile with strong profitability metrics and a solid capital structure. While the company has effectively managed costs and maintained operational efficiency, revenue growth inconsistencies and historical cash flow volatility pose risks. The balance sheet remains sound with manageable leverage, reflecting the company's stable financial health in the apparel manufacturing industry.

Income Statement

Tefron demonstrates strong profitability with a consistent gross profit margin and improving net profit margins. The TTM gross profit margin is 22.1%, and the net profit margin is 4.6%, indicating efficient cost management. However, revenue growth has been inconsistent, with recent declines. The EBIT and EBITDA margins remain healthy at 7.1% and 9.7%, respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.16, reflecting manageable leverage. The return on equity is 16.5%, indicating effective use of shareholder equity to generate profits. The equity ratio stands at 51.4%, suggesting a strong capital structure. However, the decrease in total assets and liabilities over the years points to a contracting balance sheet.

Cash Flow

Tefron's cash flow performance is solid, with a positive operating cash flow to net income ratio of 2.13, indicating strong cash generation relative to net earnings. The free cash flow to net income ratio is 1.23, suggesting sustainable free cash flow. Free cash flow growth has fluctuated but remains positive in the TTM. However, historical volatility in cash flow should be monitored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	245.88M	293.86M	243.46M	222.31M	261.35M	180.00M
Gross Profit	74.92M	66.48M	55.14M	49.12M	53.78M	34.31M
EBITDA	20.22M	31.12M	25.26M	19.23M	20.82M	11.70M
Net Income	780.92K	15.11M	10.93M	7.45M	14.35M	4.56M
Balance Sheet
Total Assets	503.42M	149.79M	140.84M	155.24M	150.77M	108.20M
Cash, Cash Equivalents and Short-Term Investments	3.72M	6.22M	3.70M	5.66M	5.58M	9.15M
Total Debt	24.50M	12.09M	24.80M	58.56M	45.25M	36.31M
Total Liabilities	73.24M	73.00M	77.66M	103.09M	106.76M	80.81M
Stockholders Equity	261.48M	76.79M	63.18M	52.15M	44.00M	27.39M
Cash Flow
Free Cash Flow	-1.60M	21.89M	38.98M	-6.81M	-7.51M	798.00K
Operating Cash Flow	14.14M	30.91M	46.38M	-4.00M	-3.17M	3.65M
Investing Cash Flow	-28.17M	-9.03M	-7.01M	-2.82M	-3.40M	-2.73M
Financing Cash Flow	7.51M	-18.89M	-39.73M	7.00M	1.79M	3.51M

Tefron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1493.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TFRLF, the sentiment is Positive. The current price of 1493 is below the 20-day moving average (MA) of 1494.90, below the 50-day MA of 1689.88, and below the 200-day MA of 2070.64, indicating a neutral trend. The MACD of -43.45 indicates Negative momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 61.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:TFRLF.

Tefron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DELG	76 Outperform	4.65B	15.09	10.63%	2.47%	2.95%	-14.16%
DLTI	76 Outperform	3.22B	20.61	―	3.08%	―	―
TFRLF	73 Outperform	189.77M	9.67	6.83%	14.02%	-19.40%	-67.56%
CAST	66 Neutral	1.35B	12.69	―	22.30%	9.88%	-2.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AVGL	43 Neutral	406.39M	-29.15	―	―	4.79%	-789.71%