Tandy Leather Factory, Inc. (TLF) AI Stock Analysis

Tandy Leather Factory, Inc. retails leather and leathercraft supplies across North America and Spain. The company provides leather, hand tools, hardware, kits, liquids, teaching materials, open workbenches, machinery, and accessories. It also manufactures leather laces, cut leather pieces, do-it-yourself kits, thread laces, belt strips and straps, and Craftaids, while offering cutting, splitting, and assembly production services. Operating under brands including Tandy Leather, Eco-Flo, Craftool, CraftoolPro, Dr. Jackson's, and TandyPro, sales flow through 106 retail stores—including 95 in the United States, ten in Canada, and one in Spain—and regional e-commerce sites like tandyleather.com.

Tandy Leather Factory generated revenue of $82.7M in FY2021, which decreased to $80.3M in FY2022, $76.2M in FY2023, and $74.4M in FY2024 before rising 2.6% to $76.3M in FY2025. Gross margin held between 56.2% and 59.2% across these years, while operating margin fell from 5.8% in FY2023 to -1.3% in FY2025. Net income was $9.1M in FY2025, yielding an eps of $0.07, supported by a 5-year revenue CAGR of 3.6%. For the trailing twelve months, revenue totaled $77.2M. In the latest quarter ending June 30, 2026, quarterly revenue grew 1.5% year-over-year, while quarterly earnings declined 98.0%.

As of June 30, 2026, Tandy Leather Factory held $6.4M in cash and short-term investments alongside total debt of $28.3M, yielding net debt of $21.9M. Total assets stood at $81.6M and shareholders' equity reached $47.0M, supported by a current ratio of 4.55 and a debt-to-equity ratio of 0.60. For FY2025, operating cash flow was -$556,000 and free cash flow was -$8.1M. During FY2025, capital expenditures consumed $7.5M, share buybacks used $1.4M, and dividends paid totaled $12.7M.

Tandy Leather Factory trades at a market cap of $19.6M and an enterprise value of $43.1M. Its forward P/E of 11.7x sits below the 14.1x median of its US-listed Consumer Cyclical peers. The stock's price-to-sales multiple is 0.3x versus the peer median of 0.7x, and its EV-to-EBITDA stands at 6.7x compared to the peer median of 11.1x. Over the past year, the stock returned 35.7%, outperforming the S&P 500 return of 16.8%, but its 5-year return of 8.0% lagged the S&P 500 return of 83.0%.

Analyst tracking for the stock shows a mean price target of $5.50, representing a 130.3% upside compared to the last close of $2.39 on October 16, 2026. Tandy Leather Factory has recorded 1 EPS beat over the last 4 quarters. The company's next earnings report is scheduled for November 9, 2026.

This page is an AI-written research summary of Tandy Leather Factory, Inc. (TLF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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