Tandy Leather Factory Inc. Common Stock (TLF)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Generates $880,125 in annual free cash flow (4.6% yield on market cap)
• Solid return on equity of 16.6% above cost of capital

AI Analysis

Tandy Leather Factory Inc. Common Stock is a micro-cap consumer cyclical company valued at $19 million. The business generates $76 million in annual revenue with a 0.9% net margin and $880,125 in free cash flow. From a quality standpoint, Tandy shows Altman Z-Score of 2.1 in the grey zone and adequate 17% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 2.1x, with offers a 81% margin of safety vs Graham Number of $13. Growth dynamics show revenue growing at 8.7% and profit growth of -380.1%. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Tandy's consistent 17% ROE at just 2x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $880,125 in annual free cash flow (4.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer