Tandy Leather Factory Inc (NASDAQ: TLF)

Sector: Consumer Cyclical Industry: Specialty Retail CIK: 0000909724
Market Cap 26.51 Mn
P/B 0.50
P/E 2.31
P/S 0.36
ROIC (Qtr) -0.17
Div Yield % 48.39
Rev 1y % (Qtr) -0.50
Total Debt (Qtr) 24.98 Mn
Debt/Equity (Qtr) 0.47
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About

Investment thesis

Bull case

  • Healthy cash reserves of 12.02M provide 3.40x coverage of short-term debt 3.54M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 84.54M provides 3.38x coverage of total debt 24.98M, indicating robust asset backing and low credit risk.
  • Retained earnings of 61.77M provide full 2.88x coverage of long-term debt 21.44M, indicating strong internal capital position.
  • Tangible assets of 84.54M provide robust 25.32x coverage of other current liabilities 3.34M, indicating strong asset backing.
  • Retained earnings of 61.77M provide strong 18.50x coverage of other current liabilities 3.34M, indicating earnings quality.

Bear case

  • Operating cash flow of (1.02M) barely covers its investment activities of 17.64M, with a coverage ratio of -0.06, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (1.02M) provides thin coverage of dividend payments of (12.74M) with a 0.08 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of (1.02M) shows concerning coverage of stock compensation expenses of 352000, with a -2.91 ratio indicating potential earnings quality issues.
  • Free cash flow of 16.61M provides weak coverage of capital expenditures of (17.64M), with a -0.94 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (1.02M) provides minimal -0.27x coverage of tax expenses of 3.80M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ULTA Ulta Beauty, Inc. 32.20 Bn 27.06 2.69 2.57 Bn
2 WSM Williams Sonoma Inc 29.62 Bn 25.19 3.40 1.47 Bn
3 TSCO Tractor Supply Co /De/ 28.42 Bn 25.23 1.93 5.72 Bn
4 DKS Dick'S Sporting Goods, Inc. 24.98 Bn 88.10 4.64 7.70 Bn
5 CASY Caseys General Stores Inc 24.65 Bn 59.49 1.65 2.92 Bn
6 BBY Best Buy Co Inc 17.85 Bn 11.66 0.41 4.09 Bn
7 MUSA Murphy USA Inc. 15.91 Bn 61.33 1.35 2.75 Bn
8 FIVE Five Below, Inc 11.68 Bn 37.94 2.64 2.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.25 2.23
EV to Cash from Ops. EV/CFO -20.98 14.70
EV to Debt EV to Debt 0.86 79.39
EV to EBIT EV/EBIT 1.41 -40.16
EV to EBITDA EV/EBITDA 3.91 11.51
EV to Free Cash Flow [EV/FCF] EV/FCF 1.29 -286.14
EV to Market Cap EV to Market Cap 0.81 6.33
EV to Revenue EV/Rev 0.29 2.39
Price to Book Value [P/B] P/B 0.50 32.78
Price to Earnings [P/E] P/E 2.31 -36.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.90 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 111.90 14.19
Dividend per Basic Share Div per Share (Qtr) 1.50 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 73.53 18.58
Interest Coverage Int. cover (Qtr) 0.00 4.43
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 789.83 13.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 19.52 33.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 371.29 -272.99
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -21.44 588.45
EBIT Growth (1y) % EBIT 1y % (Qtr) 476.07 29.27
EBT Growth (1y) % EBT 1y % (Qtr) 476.07 -92.23
EPS Growth (1y) % EPS 1y % (Qtr) 378.57 -121.86
FCF Growth (1y) % FCF 1y % (Qtr) 1,943.54 71.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.33 2.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.88 1.24
Cash Payout Ratio Cash Payout (Qtr) -0.68 0.04
Cash Ratio Cash Ratio (Qtr) 1.26 0.74
Current Ratio Curr Ratio (Qtr) 5.22 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.47 25.92
Interest Cover Ratio Int Coverage (Qtr) 0.00 4.43
Times Interest Earned Times Interest Earned (Qtr) 0.00 4.43
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 28.10 -42.64
EBIT Margin % EBIT Margin % (Qtr) 20.47 -131.12
EBT Margin % EBT Margin % (Qtr) 20.47 -64.70
Gross Margin % Gross Margin % (Qtr) 56.70 30.93
Net Profit Margin % Net Margin % (Qtr) 15.40 -65.71