Tandy Leather Factory Inc (TLF) stock analysis

P/E above its 5-year median

Tandy Leather Factory's P/E of 111.0 is above its own 5-year median of 16.3.

P/E above the industry

Tandy Leather Factory's P/E of 111.0 is above the Consumer discretionary median of 19.6.

EV/EBITDA below its 5-year median

Tandy Leather Factory's EV/EBITDA of 14.6 is below its 5-year median of 15.1.

P/B below the industry

Tandy Leather Factory's price-to-book of 0.38 is below the Consumer discretionary median of 2.44.

Price against fair value

We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

Margin of safety

Depends on the fair value estimate.

Revenue growing under 10% a year

Revenue grew -1.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 94.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 5.3% over the last twelve months; the Consumer discretionary median is 7.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 60.3% over the last twelve months, against 56.7% a year earlier.

Return on equity under 15%

Return on equity was 0.3% over the last twelve months and averaged 6.0% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 1.0%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Tandy Leather Factory's return on equity of 0.3% is below the Consumer discretionary median of 5.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 0.2% over the last twelve months, against a 5-year average of 4.2%.

Net margin below the industry

Tandy Leather Factory's net margin of 0.2% is below the Consumer discretionary median of 5.6%.

No debt

Tandy Leather Factory has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 4.69 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.78; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Tandy Leather Factory paid dividends worth 33.8% of the share price over the last twelve months.

Yield above Treasuries

The 33.8% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Tandy Leather Factory yields 33.8%.

Dividend stability

Fewer than five years of dividend history.

Not covered by earnings

Dividends take 3480% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.