Tandy Leather Factory (TLF)
NASDAQ:TLF
Top Page
Tandy Leather Factory
(NASDAQ:TLF)
Select Model
Select Model
Rating:60Neutral
Price Target:
$3.00
▲(5.63% Upside)
Action:ReiteratedDate:02/25/26
The score is held back most by weakening financial quality in 2025—negative operating profit, negative free cash flow, and higher leverage—despite strong gross margins. Offsetting this, technicals are mildly constructive with the stock trading above major moving averages, and valuation looks attractive due to a very low P/E.
Positive Factors
High Gross Margins
Sustained gross margins near the high-50% range indicate durable product pricing power and favorable unit economics for leather goods. That margin buffer supports profitability through cost pressure, funds reinvestment in channels, and helps preserve cash generation potential over the next several quarters.
Negative Factors
Negative Free Cash Flow
Deeply negative free cash flow signals the business is consuming cash from operations or heavy investment, reducing runway for strategic initiatives. Persistently negative FCF constrains capital allocation, increases reliance on external funding, and raises execution risk if operating results don’t recover.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Sustained gross margins near the high-50% range indicate durable product pricing power and favorable unit economics for leather goods. That margin buffer supports profitability through cost pressure, funds reinvestment in channels, and helps preserve cash generation potential over the next several quarters.
Read all positive factors
Tandy Leather Factory (TLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.41M
Dividend YieldN/A
Average Volume (3M)12.55K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth-0.28%
EPS Growth363.27%
CountryUS
Employees414
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.12
Shares Outstanding8,072,875
10 Day Avg. Volume9,780
30 Day Avg. Volume12,547
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.43
Price to Sales (P/S)0.30
P/FCF Ratio-2.79
Enterprise Value/Market Cap1.61
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit0.68
Enterprise Value/Ebitda14.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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,...
How the Company Makes Money
Tandy Leather Factory generates revenue primarily through the sale of leather and leatherworking supplies, including hides, tools, dyes, and hardware, both in retail locations and online. The company has a diversified revenue model that includes d...
Tandy Leather Factory Earnings Call Summary
Earnings Call Date:Mar 22, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant improvements in operating income, adjusted EBITDA, and gross margin, coupled with strategic new store openings. However, these positives were offset by a decline in overall sales and lower-than-expected interest income. The company showed strong financial discipline and strategic planning, suggesting cautious optimism for future growth.Positive Updates
Increase in Operating Income
Operating income rose to $4.4 million, marking a $3 million increase over the previous year.
Negative Updates
Decline in Sales
Sales decreased by 5.1% to $76.2 million, attributed to weak consumer demand and store closures.
Read all updates
Q4-2023 Updates
Positive
Negative
Increase in Operating Income
Operating income rose to $4.4 million, marking a $3 million increase over the previous year.
Read all positive updates
Company Guidance
In the Tandy Leather Factory (TLF) Q4 2023 earnings call, the company provided guidance focused on maintaining profitability and cash flow amid a challenging market environment. For the year, TLF reported a 5.1% decline in sales totaling $76.2 million, yet achieved a $4.4 million operating income, up $3 million from the previous year. Gross margin improved by 130 basis points, while operating expenses dropped by 9.7%. Adjusted EBITDA rose to $6.5 million, a $2.5 million increase year-over-year. The company ended the year with $12.2 million in cash, a $4 million increase, and maintained a debt-free balance sheet. Looking to 2024, Tandy plans to open 3 to 5 new stores, leveraging a new retail model that focuses on a smaller footprint and expert customer service. Additionally, the company is exploring the sale of its Fort Worth property to potentially unlock more value and excess cash, which could be returned to shareholders.Tandy Leather Factory Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
60
Neutral
Cash Flow
35
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 76.32M | 74.39M | 76.23M | 80.33M | 82.66M |
| Gross Profit | 43.54M | 41.80M | 45.16M | 46.50M | 47.00M |
| EBITDA | 18.46M | 5.36M | 9.04M | 2.83M | 4.66M |
| Net Income | 9.10M | 827.00K | 3.77M | 1.23M | 1.35M |
Balance Sheet | |||||
| Total Assets | 86.63M | 74.92M | 72.14M | 68.58M | 73.08M |
| Cash, Cash Equivalents and Short-Term Investments | 16.09M | 13.27M | 12.16M | 7.97M | 10.15M |
| Total Debt | 27.38M | 10.77M | 9.43M | 10.37M | 11.66M |
| Total Liabilities | 34.04M | 17.77M | 15.79M | 17.12M | 21.58M |
| Stockholders Equity | 52.59M | 57.15M | 56.35M | 51.46M | 51.50M |
Cash Flow | |||||
| Free Cash Flow | -8.09M | 1.56M | 3.96M | 519.00K | 2.71M |
| Operating Cash Flow | -556.00K | 4.55M | 4.54M | 1.15M | 3.72M |
| Investing Cash Flow | 17.36M | -2.98M | -576.00K | -625.00K | -1.00M |
| Financing Cash Flow | -14.11M | -1.00K | -26.00K | -2.17M | -2.78M |
Tandy Leather Factory Technical Analysis
Negative
2.84
Price Trends
2.33
Negative
2.19
Positive
2.29
Negative
Market Momentum
>-0.01
Positive
44.64
Neutral
37.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLF, the sentiment is Negative. The current price of 2.84 is above the 20-day moving average (MA) of 2.31, above the 50-day MA of 2.33, and above the 200-day MA of 2.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TLF.
Tandy Leather Factory Risk Analysis
Tandy Leather Factory disclosed 21 risk factors in its most recent earnings report. Tandy Leather Factory reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tandy Leather Factory Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $18.41M | -2.79 | 16.54% | ― | -0.28% | 363.27% | |
51 Neutral | $24.45M | -40.28 | -3.23% | 25.20% | -5.07% | -115.50% | |
49 Neutral | $18.64M | ― | -9.51% | ― | -12.53% | -3.24% | |
44 Neutral | $21.11M | -2.29 | ― | ― | -10.64% | 37.38% | |
44 Neutral | $7.73M | -0.31 | ― | ― | -35.95% | 26.08% |
* Consumer Cyclical Sector Average
TLF
Tandy Leather Factory
2.28
0.21
10.14%
TBHC
Brand House Collective
0.94
-0.21
-18.35%
NHTC
Natural Health Trends
2.85
-1.29
-31.09%
MOGU
Mogu
2.28
0.24
11.76%
YJ
Yunji
1.57
-0.09
-5.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.