Tandy Leather Factory (TLF) AI Stock Analysis

• Market Cap: $29.49M
• Dividend Yield: N/A
• Average Volume (3M): 12.82K
• Price to Earnings (P/E): 2.3
• Beta (1Y): 0.28
• Revenue Growth: -1.32%
• EPS Growth: 252.38%
• Country: US
• Employees: 414
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Specialty Retail
• EPS (TTM): 1.48
• Shares Outstanding: 8,499,536
• 10 Day Avg. Volume: 17,095
• 30 Day Avg. Volume: 12,818
• PEG Ratio: <0.01
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -172.63
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.36
• Enterprise Value/Ebitda: 0.73
• 1Y Price Target: $3.50
• Price Target Upside: 0.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $4.00 ▲(15.27%Upside)

Tandy Leather Factory's stock score is primarily driven by strong technical analysis and positive corporate events. The company's moderate financial performance, with challenges in profitability and growth, is offset by its strong equity position and low leverage. The undervaluation based on P/E ratio further supports the score, despite the lack of earnings call data.

Tandy Leather Factory Business Overview & Revenue Model

Company Description

Tandy Leather Factory, Inc., together with its subsidiaries, operates as a retailer of leather and leathercraft-related items in North America and Spain. It offers leather, hand tools, hardware, kits, liquids, teaching materials, open workbenches, machinery, and related accessories and supplies. The company also manufactures leather laces, cut leather pieces, do-it-yourself kits, thread laces, belt strips and straps, and Craftaids. In addition, it offers production services, including cutting, splitting, and assembly services to business customers. The company sells its products under the Tandy Leather, Eco-Flo, Craftool, CraftoolPro, Dr. Jackson's, and TandyPro brand names through company-owned stores; and orders generated from its websites, such as tandyleather.com, tandyleather.ca, tandyleather.eu, and tandyleather.com.au. It operates 106 retail stores, including 95 stores in the United States; ten stores in Canada; and one store in Spain. The company was formerly known as The Leather Factory, Inc. and changed its name to Tandy Leather Factory, Inc. in 2005. Tandy Leather Factory, Inc. was founded in 1919 and is headquartered in Fort Worth, Texas.

How the Company Makes Money

Tandy Leather Factory generates revenue primarily through the sale of leather and leathercraft supplies. Its key revenue streams include retail sales from its physical store locations and online e-commerce platform, as well as wholesale distribution to businesses and institutions. The company benefits from its strong brand recognition and customer loyalty in the niche market of leathercrafting. Partnerships with educational institutions and craft-focused organizations also contribute to its revenue by fostering long-term customer relationships and expanding its market reach.

Tandy Leather Factory Financial Statement Overview

Summary

Tandy Leather Factory demonstrates moderate financial health with strong equity and low leverage. However, decreasing margins and revenue suggest challenges in profitability and growth, though cash flow remains relatively stable.

Income Statement

Tandy Leather Factory shows moderate stability with a gross profit margin of 56.2% and a declining net profit margin to 1.1% in 2024, down from 4.9% in 2023. Revenue has decreased by 2.4% from 2023 to 2024, indicating potential market challenges. The EBIT margin has also dropped significantly from 5.8% to 0.8%, highlighting decreased operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong with a debt-to-equity ratio of 0.19, indicating low leverage. The equity ratio is 76.3%, reflecting a strong equity position. ROE decreased from 6.7% in 2023 to 1.4% in 2024, showing reduced profitability on equity.

Cash Flow

Operating cash flow remained stable from 2023 to 2024, but the free cash flow decreased by 60.5%, showing reduced efficiency in cash generation. The operating cash flow to net income ratio is 5.5, indicating strong cash conversion, while the free cash flow to net income ratio is 1.9, reflecting a decent level of cash available after investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.39M	76.23M	80.33M	82.66M	64.08M
Gross Profit	41.80M	45.16M	46.50M	47.00M	36.06M
EBITDA	5.36M	9.04M	5.82M	6.52M	-2.06M
Net Income	827.00K	3.77M	1.23M	1.35M	-4.90M
Balance Sheet
Total Assets	74.92M	72.14M	68.58M	73.08M	75.69M
Cash, Cash Equivalents and Short-Term Investments	13.27M	12.16M	7.97M	10.15M	10.33M
Total Debt	10.77M	9.43M	10.37M	11.66M	13.26M
Total Liabilities	17.77M	15.79M	17.12M	21.58M	23.50M
Stockholders Equity	57.15M	56.35M	51.46M	51.50M	52.19M
Cash Flow
Free Cash Flow	1.56M	3.96M	519.00K	2.71M	-13.84M
Operating Cash Flow	4.55M	4.54M	1.15M	3.72M	-12.53M
Investing Cash Flow	-2.98M	-576.00K	-625.00K	-1.00M	6.26M
Financing Cash Flow	-1.00K	-26.00K	-2.17M	-2.78M	416.00K

Tandy Leather Factory Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.47
• 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 TLF, the sentiment is Positive. The current price of 3.47 is above the 20-day moving average (MA) of 3.26, above the 50-day MA of 3.12, and above the 200-day MA of 3.15, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 66.00 is Neutral, neither overbought nor oversold. The STOCH value of 72.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLF.

Tandy Leather Factory Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLF	76 Outperform	$29.49M	2.30	22.74%	―	-1.32%	252.38%
Sector *	63 Neutral	$17.10B	10.79	-8.01%	2.94%	1.62%	-25.73%
NHTC	52 Neutral	$52.85M	104.08	1.44%	17.43%	-0.62%	1.15%
BGFV	51 Neutral	$32.58M	―	-39.57%	3.52%	-8.85%	-397.36%
KIRK	47 Neutral	$41.10M	―	77.02%	―	-7.00%	14.22%
YJ	44 Neutral	$9.31M	―	-10.86%	―	-35.95%	26.08%
MOGU	40 Underperform	$16.40M	―	-11.43%	―	-32.31%	69.20%

Tandy Leather Factory Corporate Events

Tandy Leather Factory Announces Stock Repurchase Agreement

On June 17, 2025, Tandy Leather Factory, Inc. entered into a Stock Repurchase Agreement with Janet Carr to buy back 430,897 shares of its common stock for a total of $1,292,691. This transaction, expected to close by June 30, 2025, will reduce the company’s outstanding common stock by approximately 5.1%, potentially impacting its market positioning and shareholder value.

Tandy Leather Factory Holds Successful Annual Stockholder Meeting

On June 10, 2025, Tandy Leather Factory, Inc. held its annual meeting of stockholders where four key proposals were voted on. The proposals included the election of six directors, ratification of Whitley Penn as the independent accounting firm for 2025, an advisory vote on executive compensation, and approval of an increase in shares for the 2023 Incentive Stock Plan. The results showed strong support for the election of directors and the ratification of the accounting firm, while the executive compensation and share increase proposals also received significant backing, indicating shareholder confidence in the company’s strategic direction.