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iFabric Corp. J (TSE:IFA)
TSX:IFA
Canadian Market
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iFabric (IFA) AI Stock Analysis

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iFabric

(TSX:IFA)

Rating:60Neutral
Price Target:
C$1.00
▲(11.11%Upside)
The overall stock score is primarily driven by strong financial performance, underscored by revenue growth and improved profitability. However, technical analysis indicates bearish trends, which weigh down the score. Valuation suggests a moderately priced stock, but the lack of a dividend yield may limit attractiveness. Corporate events show strong shareholder support and record revenues, yet challenges persist in certain divisions and external risks.

iFabric (IFA) vs. iShares MSCI Canada ETF (EWC)

iFabric Business Overview & Revenue Model

Company DescriptioniFabric Corp. designs and distributes women's intimate apparel and accessories in Canada, the United States, the United Kingdom, Southeast Asia, and internationally. The company's Intimate Apparel division engages in the design, purchase, and distribution of intimate apparel, which includes a range of specialty bras, including reversible bra, patented bandeaux bra, and patented breast lift products. Its Intelligent Fabrics division engages in development, testing, and distribution of specialty textiles and chemicals for textiles, such as Protx2, an anti-microbial and anti-viral formulations; Enguard, an insect repellant technology; Dreamskin, a skin polymer; UVtx, an ultraviolet light blocker; FreshTx, an odor absorbing technology; RepelTX, a durable water repellant; Omega+, a joint and muscle recovery; TempTx, a thermal regulator; Apollo, a body odor neutralizer; DryTx, a moisture-wicking technology; BioTX, a metal free anti-stink solution; RepelTX Eco Plus, a fluorine-free durable water repellant; IMPRINT, a logo exposing moisture-wicker; and DriForce, a fabric interior moisture wicker. iFabric Corp. was founded in 1985 and is headquartered in Markham, Canada.
How the Company Makes MoneyiFabric primarily makes money through the sale of its proprietary textile products to a diverse range of industries. The company's revenue streams include direct sales to manufacturers and distributors in the healthcare, consumer, and industrial sectors. iFabric also engages in licensing agreements, where it licenses its patented textile technologies to other companies, generating royalty income. Strategic partnerships with industry leaders further enhance its revenue, allowing for expanded market reach and product development collaborations. The company benefits from these alliances, which facilitate entry into new markets and the launch of innovative textile solutions.

iFabric Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q2-2024)
|
% Change Since: -18.18%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with record revenue and expectations of significant growth in the coming quarters, supported by strong relationships with major retailers like Target. Despite some challenges such as increased expenses and pending EPA approval, the company's strong balance sheet and strategic growth initiatives indicate a promising future.
Q2-2024 Updates
Positive Updates
Record Quarterly Revenue
The company reported a record Q2 revenue of $5.8 million, marking a 10% increase from the previous year's $5.3 million, driven by the Intelligent Fabrics division.
Strong Gross Margin
Gross margin increased to 42% from 40%, attributed to new programs with better margins.
Legal Claim Recovery
The company collected $400,000 from an ongoing legal claim they had previously impaired.
Strong Balance Sheet
The company maintains a strong, underleveraged balance sheet with an unutilized credit line of $6.75 million.
Significant Expected Growth
Guidance for the year suggests over 50% growth for the last two quarters, with Q4 anticipated to be over $10 million in revenue, driven by four major programs.
Major U.S. Retailer Acquisition
Acquired a major U.S. retailer, Target, and established a relationship for ongoing programs.
Negative Updates
Increased Administrative and Selling Expenses
A 34% increase in admin and selling expenses due to increased personnel and travel costs.
Cash Decrease
Cash reserves decreased by about $500,000 compared to the previous quarter due to deposits on future purchases.
Potential Impact of External Factors
Concerns about potential impacts from a railroad strike, though not immediate, could affect logistics if prolonged.
Ongoing EPA Approval Delays
EPA approval for a key product is still pending, with no clear timeline for completion.
Company Guidance
During the Q2 2024 earnings call for iFabric (IFA.TO), several key metrics and forward-looking guidance were discussed. Revenue for the quarter reached a record $5.8 million, marking a 10% increase from the previous year, primarily driven by the Intelligent Fabrics division. The gross margin improved to 42% from 40%, reflecting strong performance from new programs. Administrative and selling expenses rose by 34% due to increased personnel and travel costs, as the company invests in infrastructure to support anticipated growth. Despite a $500,000 decrease in cash, working capital increased slightly to $18 million. iFabric maintains a strong balance sheet with an unutilized credit line of $6.75 million. Looking ahead, the company anticipates significant growth in Q4, with projected revenues expected to exceed $10 million, contributing to a total annual revenue target of over $30 million, representing more than 50% growth in the latter half of the year. The management reiterated confidence in achieving these targets, despite potential external challenges like a railroad strike, and highlighted ongoing efforts to expand into new market segments, particularly in the U.S., while also addressing questions about potential share buybacks, insider share purchases, and the status of regulatory approvals.

iFabric Financial Statement Overview

Summary
iFabric demonstrates strong financial health with robust revenue growth and improved profitability. The balance sheet reflects low leverage and strong equity financing, enhancing financial stability. Cash flow management has improved, yet there is scope for enhancing cash conversion rates. Overall, iFabric is on a positive trajectory with opportunities to strengthen cash flow dynamics.
Income Statement
78
Positive
The company shows strong revenue growth with a 20.3% increase from the previous year. Gross profit margin stands at 41.2%, indicating efficient cost management. The net profit margin improved significantly, moving from a negative to 6.0%, showcasing enhanced profitability. EBIT and EBITDA margins are also positive, reflecting operational efficiency.
Balance Sheet
72
Positive
The debt-to-equity ratio is low at 0.081, indicating prudent financial leverage. Return on Equity (ROE) is solid at 7.1%, showing effective use of equity. The equity ratio is strong at 78.4%, suggesting financial stability with a high proportion of assets financed by equity.
Cash Flow
65
Positive
The free cash flow growth rate improved significantly, turning positive after a previous decline, signaling better cash management. The operating cash flow to net income ratio is low at 0.18, suggesting potential cash flow volatility. The free cash flow to net income ratio is 0.13, indicating room for improvement in converting net income into cash flow.
BreakdownDec 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue27.33M22.72M19.74M19.76M11.52M
Gross Profit11.27M8.84M7.03M7.76M4.30M
EBITDA2.11M-2.21M-27.09K3.21M-551.96K
Net Income1.63M-1.69M-452.46K2.37M-624.71K
Balance Sheet
Total Assets29.49M25.91M27.37M27.63M17.51M
Cash, Cash Equivalents and Short-Term Investments2.06M1.57M944.73K8.90M1.16M
Total Debt1.88M2.03M1.24M1.27M1.32M
Total Liabilities6.35M5.21M4.60M5.35M8.17M
Stockholders Equity23.13M20.69M22.75M22.27M9.34M
Cash Flow
Free Cash Flow208.92K644.99K-8.45M-2.48M-1.24M
Operating Cash Flow301.78K833.77K-8.21M-2.22M-1.06M
Investing Cash Flow-52.86K-138.38K-242.76K-253.40K-178.02K
Financing Cash Flow-214.74K-14.42K41.93K10.46M205.15K

iFabric Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.90
Price Trends
50DMA
0.99
Negative
100DMA
1.03
Negative
200DMA
1.07
Negative
Market Momentum
MACD
-0.02
Positive
RSI
42.06
Neutral
STOCH
25.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IFA, the sentiment is Negative. The current price of 0.9 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 0.99, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 25.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:IFA.

iFabric Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
€5.87B12.31-11.12%4.13%3.79%-34.20%
TSIFA
60
Neutral
C$27.27M25.655.50%21.12%
GIGIL
$7.69B19.7324.40%1.77%
TSAEG
C$31.56M6.54%
TSUNI
52
Neutral
C$24.91M-30.57%-8.08%46.56%
$1.34B20.3419.34%
$32.27M-1.51%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IFA
iFabric
0.90
-0.15
-14.29%
GIL
Gildan Activewear
50.49
11.67
30.06%
TSE:AEG
Aegis Brands
0.37
-0.02
-5.13%
TSE:UNI
Unisync
1.40
-0.38
-21.35%
GOOS
Canada Goose Holdings
13.87
1.65
13.50%
MENEF
Mene
0.11
0.03
37.50%

iFabric Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
iFabric Corp. Secures Strong Shareholder Support at 2025 AGM
Positive
Jun 24, 2025

iFabric Corp. announced the successful approval of all matters presented at its 2025 Annual General Meeting, with approximately 65% of total shares represented. The meeting included the election of directors and the re-appointment of BDO Canada LLP as auditors. This approval signifies strong shareholder support and positions iFabric for continued strategic operations in its market segments.

Business Operations and StrategyFinancial Disclosures
iFabric Corp. Achieves Record Q1 2025 Revenue Amidst Challenges
Positive
May 15, 2025

iFabric Corp. reported record revenues for Q1 2025, with a total revenue increase of 5% compared to the previous year. The Intelligent Fabrics Division saw a significant 25% increase in revenue, driven by increased apparel sales in Canada and the US. However, the Intimate Apparel Division experienced a 40% decline due to the absence of new programs. Despite increased regulatory and production costs, the company remains optimistic about future growth, supported by new product segments and strategic financial management. The recent U.S. tariff increase on Chinese imports is not expected to significantly impact 2025 earnings, although future risks remain.

Financial Disclosures
iFabric Corp to Announce Q1 2025 Financial Results
Neutral
May 8, 2025

iFabric Corp announced it will release its financial results for the first quarter of 2025 on May 15, 2025, followed by a webinar on May 20, 2025, to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

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.Date of analysis: Jul 16, 2025