📊 TLF Key Takeaways
Is Tandy Leather Factory Inc. (TLF) a Good Investment?
Tandy Leather operates with exceptional balance sheet strength and zero debt, but generates minimal profitability with net margins of only 1.1% and ROE of 0.5%, indicating poor capital efficiency. The anomalous 13,726% YoY revenue growth raises questions about data quality or non-recurring events, while thin operating margins (1.9%) despite 61% gross margins suggest structural cost challenges.
Why Buy Tandy Leather Factory Inc. Stock? TLF Key Strengths
- Zero long-term debt with $46.5M equity provides financial fortress and zero bankruptcy risk
- Strong gross margins of 61% indicate competitive positioning in leather products market
- Excellent liquidity position with 4.23x current ratio and $10.1M cash reserves
- Positive free cash flow of $319K demonstrates ongoing cash generation capability
TLF Stock Risks: Tandy Leather Factory Inc. Investment Risks
- Unexplained 13,726% YoY revenue spike creates material uncertainty about growth quality and sustainability
- Critically low profitability with ROE of 0.5% and ROA of 0.3% indicates capital is not being deployed efficiently
- Extreme operating expense burden (operating margin 1.9% on 61% gross margin) suggests structural inefficiencies
- Minimal net income of $222K on $19.7M revenue represents break-even level returns
- Large gap between current ratio (4.23x) and quick ratio (1.06x) suggests heavy inventory dependence
Key Metrics to Watch
- Operating margin trend and expense ratios to assess if thin profitability persists
- Revenue sustainability in coming quarters relative to the unexplained 13,726% YoY increase
- Return on equity trajectory toward acceptable levels above 8-10%
- Free cash flow conversion rate and working capital management efficiency
Tandy Leather Factory Inc. (TLF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility. Strong liquidity with a 4.23x current ratio provides a solid financial cushion.
TLF Profit Margin, ROE & Profitability Analysis
TLF vs Market Sector: How Tandy Leather Factory Inc. Compares
How Tandy Leather Factory Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Tandy Leather Factory Inc. Stock Overvalued? TLF Valuation Analysis 2026
Based on fundamental analysis, Tandy Leather Factory Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Tandy Leather Factory Inc. Balance Sheet: TLF Debt, Cash & Liquidity
TLF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Tandy Leather Factory Inc.'s revenue has remained relatively flat over the 5-year period, with a 8% decline. The most recent EPS of $0.09 reflects profitable operations.
TLF Revenue Growth, EPS Growth & YoY Performance
TLF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $19.0M | $222.0K | $0.03 |
| Q3 2025 | $17.3M | $101.0K | $-0.02 |
| Q2 2025 | $17.3M | $101.0K | $0.01 |
| Q1 2025 | $19.0M | $525.0K | $0.06 |
| Q3 2024 | $17.4M | $101.0K | $-0.02 |
| Q2 2024 | $17.3M | $101.0K | $0.01 |
| Q1 2024 | $19.3M | $525.0K | $0.06 |
| Q3 2023 | $17.5M | $531.0K | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Tandy Leather Factory Inc. Dividends, Buybacks & Capital Allocation
TLF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Tandy Leather Factory Inc. (CIK: 0000909724)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TLF
What is the AI rating for TLF?
Tandy Leather Factory Inc. (TLF) has an AI rating of SELL with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TLF's key strengths?
Claude: Zero long-term debt with $46.5M equity provides financial fortress and zero bankruptcy risk. Strong gross margins of 61% indicate competitive positioning in leather products market.
What are the risks of investing in TLF?
Claude: Unexplained 13,726% YoY revenue spike creates material uncertainty about growth quality and sustainability. Critically low profitability with ROE of 0.5% and ROA of 0.3% indicates capital is not being deployed efficiently.
What is TLF's revenue and growth?
Tandy Leather Factory Inc. reported revenue of $19.7M.
Does TLF pay dividends?
Tandy Leather Factory Inc. pays dividends, with $6.1M distributed to shareholders in the trailing twelve months.
Where can I find TLF SEC filings?
Official SEC filings for Tandy Leather Factory Inc. (CIK: 0000909724) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TLF's EPS?
Tandy Leather Factory Inc. has a diluted EPS of $0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TLF a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Tandy Leather Factory Inc. has a SELL rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TLF stock overvalued or undervalued?
Valuation metrics for TLF: ROE of 0.5% (sector avg: 15%), net margin of 1.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy TLF stock in 2026?
Our dual AI analysis gives Tandy Leather Factory Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TLF's free cash flow?
Tandy Leather Factory Inc.'s operating cash flow is $906.0K, with capital expenditures of $587.0K. FCF margin is 1.6%.
How does TLF compare to other Market stocks?
Vs Default sector averages: Net margin 1.1% (avg: 12%), ROE 0.5% (avg: 15%), current ratio 4.23 (avg: 1.8).