Tefron (TFRLF) AI Stock Analysis

• Market Cap: 264.84M
• Dividend Yield: 0.49%
• Average Volume (3M): 22.78K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 1.15
• Revenue Growth: 4.36%
• EPS Growth: -7.43%
• Country: IL
• Employees: 1,977
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.47
• Shares Outstanding: 12,802,025
• 10 Day Avg. Volume: 15,890
• 30 Day Avg. Volume: 22,776
• PEG Ratio: -0.34
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.88
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 1.33
• Enterprise Value/Ebitda: 0.67
• 1Y Price Target: 2,541.74
• Price Target Upside: 21.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: 2,437.00 ▲(16.88%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. is a global leader in the design and manufacturing of seamless garments and activewear. The company operates within the textile and apparel industry, offering a wide range of products including intimate apparel, activewear, and leisurewear. Tefron is renowned for its advanced knitting technologies and innovative product designs, serving a diverse clientele that includes leading retail brands and private labels worldwide.

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	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
EBITDA	31.12M	25.83M	19.40M	20.82M	11.70M
Net Income	15.11M	10.93M	7.45M	14.35M	4.56M
Balance Sheet
Total Assets	149.79M	140.84M	155.24M	150.77M	108.20M
Cash, Cash Equivalents and Short-Term Investments	6.22M	3.70M	5.66M	5.58M	9.15M
Total Debt	12.09M	24.80M	58.56M	45.25M	36.31M
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: Neutral
• Last Price: 2085.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 2085 is below the 20-day moving average (MA) of 2125.80, below the 50-day MA of 2189.62, and below the 200-day MA of 2768.04, indicating a bearish trend. The MACD of -52.95 indicates Positive momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:TFRLF.

Tefron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DELG	75 Outperform	$4.82B	14.07	12.07%	0.01%	11.14%	2.93%
TFRLF	73 Outperform	264.84M	5.60	17.75%	0.49%	4.36%	-7.43%
Sector *	72 Outperform	1.84B	17.15	20.57%	419.67%	7.40%	-35.37%
CAST	70 Outperform	1.24B	8.84		459.94%	―	―
AVGL	51 Neutral	419.45M	96.12		―	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.