Tandy Leather Factory Inc. Common Stock (TLF)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earning power bought at a sensible price. Tandy is a small specialty retailer of leather and leathercraft supplies with 401 employees and a $19.2M market capitalization at the 2026-10-13 close of $2.34. FairStock's calculations show it trades at 0.41 times book, so Peter Lynch's rules classify it as an asset play. That is the main attraction. But an asset play only works if the assets earn or can be converted into cash. The filed record is lumpy. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $18.0M and net income was $409,000, or $0.05 per diluted share. Fiscal Q1 2026 had $222,000 of net income, or $0.03 per share. Yet fiscal Q3 2025 lost $1.4M, or $0.17 per share. For FY2025, revenue was $76.3M and net income was $9.1M, or $1.10 per share, versus FY2024 net income of $827,000, or $0.09 per share. That profit swing is not the consistency I prize. Financial health is mixed. Trailing free cash flow is -$2.3M, a -12.0% FCF yield, and FairStock shows a negative trailing P/E and EPS of -$0.16. The Piotroski F-Score is 4/9, Altman Z is 2.04, and D/E is 0.60. EV/EBITDA of 6.42 is not demanding, and the beta is low, but weak returns on equity and capital suggest little moat. The stock is cheap against book value, but I would want evidence that book value is real and cash generation can turn positive before calling it a genuine bargain.

In plain English: Tandy Leather Factory sells leather and leathercraft supplies through stores and online. Recent filed results show a small profit in the first half of fiscal 2026, but the business has been uneven, does not generate free cash on a trailing basis, and earns weak returns. The stock looks inexpensive compared with its accounting book value, but because profits and cash flow are shaky, it is not clearly a strong bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer