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TLFTandy Leather Factory, Inc.
$2.36$19M
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  4. Financial Ratios

Tandy Leather Factory, Inc. (TLF) Financial Ratios

Latest Ratios: P/E Ratio 2.1x · EV/EBITDA 5.9x · ROE 16.6%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

TLF Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$19M$23M$42M$36M$36M$45M$29M$51M$52M$72M$75M
Enterprise Value$31M$34M$40M$33M$38M$46M$32M$50M$37M$61M$66M
P/E Ratio →2.152.4950.859.4728.3332.19——27.0528.7011.74
P/S Ratio0.250.300.570.470.440.540.450.680.630.870.91
P/B Ratio0.370.430.740.630.690.870.560.910.881.201.41
P/FCF——26.889.0068.7416.54—5.029.0753.8012.92
P/OCF——9.257.8630.9212.09—4.897.6223.7110.01

P/E links to full P/E history page with 30-year chart

TLF EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.440.530.430.470.560.500.660.450.740.80
EV / EBITDA5.876.537.383.6414.7013.63——6.616.665.50
EV / EBIT—2.7663.007.4723.3013.07——5.718.246.38
EV / FCF——25.288.3173.3517.10—4.886.4545.5611.31

TLF Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin57.0%57.0%56.2%59.2%57.9%56.9%56.3%56.0%60.9%63.3%62.4%
Operating Margin-1.3%-1.3%0.8%5.8%1.7%2.8%-9.9%-3.5%4.6%8.8%12.4%
Net Profit Margin11.9%11.9%1.1%4.9%1.5%1.6%-7.6%-2.5%2.4%5.4%7.7%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE16.6%16.6%1.5%7.0%2.4%2.6%-9.0%-3.3%3.3%7.9%12.2%
ROA11.3%11.3%1.1%5.4%1.7%1.8%-6.3%-2.4%2.6%6.1%9.5%
ROIC-1.2%-1.2%0.9%6.2%1.9%3.2%-8.6%-3.9%6.2%11.7%17.5%
ROCE-1.4%-1.4%1.0%7.2%2.3%3.7%-9.7%-3.8%5.6%11.1%17.4%

TLF Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.520.520.190.170.200.230.250.260.150.120.14
Debt / EBITDA5.275.272.011.044.003.43——1.590.810.62
Net Debt / Equity—0.21-0.04-0.050.050.030.06-0.03-0.25-0.18-0.18
Net Debt / EBITDA2.172.17-0.47-0.300.920.44——-2.68-1.20-0.78
Debt / FCF——-1.60-0.694.610.56—-0.14-2.62-8.23-1.61
Interest Coverage—————222.00-185.00-1.1921.3735.8566.74

TLF Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio5.165.165.115.745.334.133.954.298.718.286.47
Quick Ratio1.771.771.521.481.021.011.102.333.812.942.44
Cash Ratio1.641.641.341.360.900.830.802.053.492.632.04
Asset Turnover—0.880.991.061.171.130.840.941.091.101.17
Inventory Turnover0.990.990.920.820.890.940.761.370.960.810.94
Days Sales Outstanding—2.033.512.453.057.0017.671.991.792.042.47

TLF Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield65.3%56.3%—————————
Payout Ratio140.0%140.0%—————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield46.6%40.1%2.0%10.6%3.5%3.1%——3.7%3.5%8.5%
FCF Yield——3.7%11.1%1.5%6.0%—19.9%11.0%1.9%7.7%
Buyback Yield7.1%6.0%0.0%0.0%5.0%6.2%0.0%1.4%3.2%0.0%4.9%
Total Shareholder Yield72.4%62.3%0.0%0.0%5.0%6.2%0.0%1.4%3.2%0.0%4.9%
Shares Outstanding—$8M$9M$8M$8M$9M$9M$9M$9M$9M$9M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

High fixed cost retail

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Deep Discount Reflects Operational Uncertainty

According to current market data, TLF trades at a P/S ratio of 0.25 and a P/B of 0.37, suggesting that investors are pricing the company closer to a liquidation scenario than a going-concern growth entity, despite its established niche in the specialty leathercraft market.

The extremely low valuation multiples indicate that the market is heavily discounting the company's future earnings potential due to the persistent negative operating margins. Investors appear to be valuing the tangible asset base and cash reserves while assigning negligible value to the retail store network's ability to generate sustainable long-term growth.

Capital Efficiency Remains Structurally Impaired

Based on reported figures, ROIC has struggled to maintain positive territory, fluctuating between -0.9% and 2.4% over the last ten quarters, which indicates that the company is failing to generate returns on invested capital that exceed its cost of capital in its current configuration.

The inability to consistently compound capital suggests that the heavy investment in physical retail infrastructure is not yielding the necessary sales density to drive profitability. This trend warrants further investigation into whether the company's capital allocation strategy is overly focused on maintaining a legacy footprint rather than pivoting toward higher-margin B2B channels.

Working Capital Cycles Indicate Inefficiency

As reported in financial statements, the cash conversion cycle has remained elevated, often exceeding 300 days, primarily driven by a high days inventory outstanding (DIO) that frequently surpasses 400 days, reflecting significant challenges in managing inventory turnover within the specialty retail segment.

The prolonged inventory holding period suggests that the company may be carrying excessive stock or struggling with product obsolescence, which ties up liquidity and increases the risk of future write-downs. This inefficiency in working capital management is a primary drag on the company's overall operational performance and cash flow generation.

Conservative Leverage Masks Operational Fragility

Data from recent filings shows a debt-to-equity ratio of 0.60, which remains relatively low compared to broader retail peers, yet the company's inability to maintain consistent interest coverage suggests that even modest debt levels could become a burden if operating performance does not improve.

While the balance sheet appears healthy on the surface, the lack of consistent operating income means that the company has little margin for error in servicing its obligations. Investors should monitor whether the recent increase in debt is being deployed effectively to improve store-level productivity or if it is merely serving as a stopgap for operational cash burn.

Misapplication of P/E Multiples

The P/E ratio of 2.15 is frequently misapplied to TLF, as it obscures the fact that the company's net income is often bolstered by non-operating items rather than core retail profitability, making it a poor indicator of the company's true earning power.

Analysts should instead focus on EV/Sales or EV/EBITDA to better understand the valuation of the underlying business operations, as these metrics strip away the distortions caused by non-recurring income. Relying on P/E in this context may lead to a false sense of value, as the headline earnings do not reflect the structural challenges of the retail store footprint.

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Includes 30+ ratios · 30 years · Updated daily

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TLF — Frequently Asked Questions

Quick answers to the most common questions about buying TLF stock.

What is Tandy Leather Factory, Inc.'s P/E ratio?

Tandy Leather Factory, Inc.'s current P/E ratio is 2.1x. The historical average is 17.6x.

What is Tandy Leather Factory, Inc.'s EV/EBITDA?

Tandy Leather Factory, Inc.'s current EV/EBITDA is 5.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.

What is Tandy Leather Factory, Inc.'s ROE?

Tandy Leather Factory, Inc.'s return on equity (ROE) is 16.6%. The historical average is 8.9%.

Is TLF stock overvalued?

Based on historical data, Tandy Leather Factory, Inc. is trading at a P/E of 2.1x. Compare with industry peers and growth rates for a complete picture.

What is Tandy Leather Factory, Inc.'s dividend yield?

Tandy Leather Factory, Inc.'s current dividend yield is 65.35% with a payout ratio of 140.0%.

What are Tandy Leather Factory, Inc.'s profit margins?

Tandy Leather Factory, Inc. has 57.0% gross margin and -1.3% operating margin.

How much debt does Tandy Leather Factory, Inc. have?

Tandy Leather Factory, Inc.'s Debt/EBITDA ratio is 5.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.