Tandy Leather Factory, Inc. (TLF) | Investment Case

1. Company Snapshot

1.a. Company Description

Tandy Leather Factory, Inc., together with its subsidiaries, operates as a retailer of leather and leathercraft-related items in North America and Spain.It offers leather, hand tools, hardware, kits, liquids, teaching materials, open workbenches, machinery, and related accessories and supplies.The company also manufactures leather laces, cut leather pieces, do-it-yourself kits, thread laces, belt strips and straps, and Craftaids.

In addition, it offers production services, including cutting, splitting, and assembly services to business customers.The company sells its products under the Tandy Leather, Eco-Flo, Craftool, CraftoolPro, Dr. Jackson's, and TandyPro brand names through company-owned stores; and orders generated from its websites, such as tandyleather.com, tandyleather.ca, tandyleather.eu, and tandyleather.com.au.It operates 106 retail stores, including 95 stores in the United States; ten stores in Canada; and one store in Spain.

The company was formerly known as The Leather Factory, Inc.and changed its name to Tandy Leather Factory, Inc.in 2005.

Tandy Leather Factory, Inc.was founded in 1919 and is headquartered in Fort Worth, Texas.

Show Full description

1.b. Last Insights on TLF

Tandy Leather Factory's recent performance was impacted by declining sales, as the company's top-line growth was hindered by a decrease in demand. The third quarter 2025 earnings release revealed a challenging business environment, with the company struggling to maintain its revenue momentum. Although specific details on the decline were not provided, the earnings report likely highlighted the difficulties faced by the company. A recent rating downgrade or cautious commentary from analysts could have also contributed to the negative sentiment.

1.c. Company Highlights

Last Price	2.67
Change Percentage	-0.74%
Open	2.79
Previous Close	2.69
Market Cap ( Millions)	23
Volume	12806
Year High	5.48
Year Low	2.56
M A 50	2.92
M A 200	3.07

FCF Yield	-36.64%
Dividend Yield	56.18%
ROE	20.40%
Debt / Equity	46.80%
Net Debt / EBIDTA	372.55%
Price To Book	0.41
Price Earnings Ratio	1.9
Price To FCF	-2.73
Price To sales	0.3
EV / EBITDA	10.22

2. Transcript Summary

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3. NewsRoom

Tandy Leather Factory Reports Third Quarter 2025 Results

Nov -10

Source: globenewswire.com

Tandy Leather Factory Reports Second Quarter 2025 Results

Aug -11

Source: globenewswire.com

Tandy Leather Factory Reports First Quarter 2025 Results

May -12

Source: globenewswire.com

Tandy Leather Factory Reports Fourth Quarter and Full Year 2024 Results

Feb -26

Source: globenewswire.com

Tandy Leather Factory, Inc. Clarifies Ex-Dividend Date for Special Dividend

Jan -31

Source: globenewswire.com

Tandy Leather Factory Announces Completion of HQ Sale and Lease of New Space, Dividend to Stockholders

Jan -29

Source: globenewswire.com

Tandy Leather Factory Appoints new CEO; Announces Board Changes

Jan -03

Source: globenewswire.com

Tandy Leather Factory, Inc. Offers A Special Situation Trade

Dec -30

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Leather and Leathercraft-related Items

Expected Growth: 4.5%

Growing demand for DIY and handmade products, increasing popularity of leather crafting, and expansion of online sales channels drive the growth of the leathercraft industry, benefiting Tandy Leather Factory, Inc.

7. Detailed Products

Leathercraft Tools

A wide range of tools for leatherworking, including mallets, awls, and edge bevelers

Leather Hides and Skins

A variety of leather hides and skins in different types, weights, and finishes

Leather Dyes and Finishes

A selection of leather dyes, finishes, and conditioners for protecting and enhancing leather

Leathercraft Kits and Patterns

Pre-designed kits and patterns for creating specific leather projects

Leather Working Classes and Instruction

In-store classes, workshops, and online tutorials for learning leatherworking skills

Leather Accessories and Findings

A variety of leather accessories such as buckles, rivets, and snaps

8. Tandy Leather Factory, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for Tandy Leather Factory, Inc. because the company's products are highly specialized and there are limited alternatives available to customers.

Bargaining Power Of Customers

The bargaining power of customers is medium for Tandy Leather Factory, Inc. because while customers have some negotiating power, the company's products are highly specialized and customers are loyal to the brand.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Tandy Leather Factory, Inc. because the company has a diverse supplier base and is not heavily reliant on any one supplier.

Threat Of New Entrants

The threat of new entrants is high for Tandy Leather Factory, Inc. because the leather goods industry is relatively easy to enter and there are low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is medium for Tandy Leather Factory, Inc. because while there are several competitors in the leather goods industry, the company has a strong brand presence and loyal customer base.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	14.33%
Debt Cost	3.95%
Equity Weight	85.67%
Equity Cost	8.04%
WACC	7.45%
Leverage	16.73%

11. Quality Control: Tandy Leather Factory, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Tandy Leather Factory

A-Score: 5.1/10

Value: 9.3

Growth: 3.8

Quality: 6.8

Yield: 5.0

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

Liquidity Services

A-Score: 4.9/10

Value: 3.8

Growth: 6.1

Quality: 6.8

Yield: 0.0

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

Honest

A-Score: 4.0/10

Value: 4.7

Growth: 6.0

Quality: 6.4

Yield: 0.0

Momentum: 4.5

Volatility: 2.7

1-Year Total Return ->

1stdibs

A-Score: 3.9/10

Value: 8.4

Growth: 4.7

Quality: 5.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

Big 5 Sporting Goods

A-Score: 3.7/10

Value: 9.8

Growth: 0.6

Quality: 3.6

Yield: 5.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

A.K.A. Brands

A-Score: 2.3/10

Value: 7.2

Growth: 3.4

Quality: 2.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

19.69%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.45%

Tandy Leather Factory, Inc. - US87538X1054

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TLF

1.c. Company Highlights

Fairly Valued

Average Quality

Average Yield

Average Growth

Stable Momentum

Medium Volatility

Weak Momentum

Better Quality

Cheaper

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Leather and Leathercraft-related Items

Expected Growth: 4.5%

7. Detailed Products

Leathercraft Tools

Leather Hides and Skins

Leather Dyes and Finishes

Leathercraft Kits and Patterns

Leather Working Classes and Instruction

Leather Accessories and Findings

8. Tandy Leather Factory, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Tandy Leather Factory, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.67$

Current Price

2.67$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA