📊 TLF Key Takeaways
Is Tandy Leather Factory Inc. (TLF) a Good Investment?
Despite a significant reported earnings improvement, Tandy Leather faces a critical earnings quality issue: the company is burning $8.1M in free cash flow while reporting $9.1M net income, indicating non-operating gains masking core business deterioration. Negative operating margins (-1.3%) and operating cash flow (-$556K) reveal the core business is unprofitable and generating no cash, while the unexplained 13,726% revenue spike lacks credible operational support.
Why Buy Tandy Leather Factory Inc. Stock? TLF Key Strengths
- Fortress balance sheet with zero long-term debt and $16.1M cash reserves
- Strong gross margin of 57% demonstrates pricing power in leather products
- Excellent liquidity position with 5.16x current ratio provides financial flexibility
TLF Stock Risks: Tandy Leather Factory Inc. Investment Risks
- Severe earnings quality issue: $9.1M net income contradicted by -$8.1M free cash flow and negative operating income, indicating reliance on non-operating gains or accounting items
- Core business unprofitable with -1.3% operating margin and -$556K operating cash flow, suggesting fundamental business deterioration
- Unexplained and implausible 13,726% revenue spike raises questions about acquisition accounting, one-time events, or data anomalies that are not operationally sustainable
- Negative cash generation despite profitable headline earnings signals unsustainable working capital dynamics
Key Metrics to Watch
- Operating cash flow trend and sustainability of cash burn
- Reconciliation of net income to operating cash flow to identify non-operating income sources
- Revenue composition in next quarter to confirm if 13,726% spike is ongoing or one-time event
Tandy Leather Factory Inc. (TLF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.16x 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $17.5M | $56.0K | $0.01 |
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 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TLF's key strengths?
Claude: Fortress balance sheet with zero long-term debt and $16.1M cash reserves. Strong gross margin of 57% demonstrates pricing power in leather products.
What are the risks of investing in TLF?
Claude: Severe earnings quality issue: $9.1M net income contradicted by -$8.1M free cash flow and negative operating income, indicating reliance on non-operating gains or accounting items. Core business unprofitable with -1.3% operating margin and -$556K operating cash flow, suggesting fundamental business deterioration.
What is TLF's revenue and growth?
Tandy Leather Factory Inc. reported revenue of $76.3M.
Does TLF pay dividends?
Tandy Leather Factory Inc. pays dividends, with $12.7M 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 $1.10.
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 April 2026, Tandy Leather Factory Inc. has a SELL rating with 78% 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 17.3% (sector avg: 15%), net margin of 11.9% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
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 $-556.0K, with capital expenditures of $7.5M. FCF margin is -10.6%.
How does TLF compare to other Market stocks?
Vs Default sector averages: Net margin 11.9% (avg: 12%), ROE 17.3% (avg: 15%), current ratio 5.16 (avg: 1.8).