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D&L Industries (DLNDY)
OTHER OTC:DLNDY
US Market
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D&L Industries (DLNDY) AI Stock Analysis

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DLNDY

D&L Industries

(OTC:DLNDY)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
$1.50
▲(4.90% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by improved recent financial performance (notably stronger TTM cash flow and revenue scale-up) but moderated by higher leverage and evidence of margin compression. Valuation is a meaningful positive due to the low P/E and solid dividend yield, while technicals are neutral with only modest near-term momentum and the price still below the 200-day average.
Positive Factors
Strong Revenue Expansion
The sharp TTM revenue increase indicates meaningful scale expansion across the company’s specialty chemicals and food-ingredient activities. If sustained, greater volume and customer adoption can improve operating leverage and strengthen its position with industrial buyers.
Negative Factors
Elevated Leverage
Debt exceeding equity limits financial flexibility and can increase sensitivity to cyclical demand, input costs, and interest expenses. Although debt declined from 2025, leverage remains a material constraint on resilience and future investment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Expansion
The sharp TTM revenue increase indicates meaningful scale expansion across the company’s specialty chemicals and food-ingredient activities. If sustained, greater volume and customer adoption can improve operating leverage and strengthen its position with industrial buyers.
Read all positive factors

D&L Industries (DLNDY) vs. SPDR S&P 500 ETF (SPY)

D&L Industries Business Overview & Revenue Model

Company Description
D&L Industries, Inc. (DLNDY) is a diversified manufacturing entity specializing in the production and distribution of vital ingredients and finished goods across the Philippines and international markets. Its extensive portfolio encompasses food c...
How the Company Makes Money
D&L Industries makes money primarily by selling manufactured specialty chemical and food-ingredient products to business customers. Revenue is generated through its two main operating segments: (1) Chemicals and Raw Materials, which sells specialt...

D&L Industries Earnings Call Summary

Earnings Call Date:Mar 25, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
Balanced. The company delivered solid profitability and volume growth (net income +10.6% YoY; volumes +8%; Q4 margin improvement), improved operational metrics (lower CapEx, shorter working capital cycle, inventory days down), and continued shareholder buybacks. However, significant headwinds from raw material price spikes—especially coconut oil (+62% YoY)—drove higher working capital, negative free cash flow (PHP (1.2)B), and increased debt (net debt PHP 21.9B, net gearing 96%), while commodity margins compressed and geopolitical oil/supply risks create near-term uncertainty. Positives and negatives are roughly balanced.
Positive Updates
Net Income Growth
Net income increased 10.6% year-over-year for FY2025 and was up 20% versus the prior-year fourth quarter, indicating improved profitability versus expectations.
Negative Updates
Negative Free Cash Flow and Working Capital Strain
Free cash flow ended the year negative at PHP (1.2) billion. Higher raw material prices, especially coconut oil, increased working capital tied up by close to PHP 6 billion, pressuring liquidity.
Read all updates
Q4-2025 Updates
Negative
Net Income Growth
Net income increased 10.6% year-over-year for FY2025 and was up 20% versus the prior-year fourth quarter, indicating improved profitability versus expectations.
Read all positive updates
Company Guidance
Management did not give formal 2026 earnings guidance because of geopolitical and commodity volatility, but offered directional guidance: CapEx is expected to remain much lower and near a stable run‑rate (PHP 767m in 2025), working capital and free cash flow should improve in 2026 (2025 free cash flow was negative PHP 1.2bn) as coconut oil eases from its August 2025 peak (~$3,000/t) to roughly $2,300–2,400 (coconut oil +62% YoY; palm oil +6% YoY), which should lower cash tied in inventory and shorten the working capital cycle (WCC improved 139 → 110 days; inventory 107 → 74 days; AR 45 days; payables 21 → 9 days), enabling deleveraging from current net debt of PHP 21.9bn (net gearing ~96%, interest cover ~3x, avg cost of debt ~6%); they expect product mix to drift back toward pre‑COVID ~2/3 high‑margin/1/3 commodities over time (company reported FY volume +8% overall, high‑margin volume +9%, specialty product revenue +22%, commodity revenue +64%, high‑margin margin 18.5% FY / Q4 20.1%, commodity margin 7.5%) and will continue opportunistic share buybacks (family has repurchased ~9% since IPO) while monitoring supply risks.

D&L Industries Financial Statement Overview

Summary
Income statement strength (solid profitability and sharp TTM revenue acceleration) and improved TTM cash generation are offset by elevated leverage (debt-to-equity ~1.09) and margin compression versus prior years. Cash flow quality improved recently, but has been volatile across 2024–2025.
Income Statement
72
Positive
Balance Sheet
56
Neutral
Cash Flow
63
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue55.81B55.39B40.67B33.50B43.48B30.86B
Gross Profit7.27B7.21B6.25B5.70B6.07B4.56B
EBITDA6.15B5.85B4.99B4.46B5.14B4.07B
Net Income2.71B2.59B2.34B2.30B3.32B2.64B
Balance Sheet
Total Assets52.87B53.01B48.37B42.63B40.76B36.33B
Cash, Cash Equivalents and Short-Term Investments3.26B3.44B2.88B2.88B3.33B5.87B
Total Debt24.81B26.44B21.91B17.69B16.30B14.19B
Total Liabilities30.19B30.14B26.58B21.76B20.11B17.22B
Stockholders Equity22.69B22.87B21.79B20.87B20.65B19.10B
Cash Flow
Free Cash Flow4.61B-281.39M-1.04B1.14B-1.72B-3.39B
Operating Cash Flow5.41B567.84M47.52M2.65B1.98B204.45M
Investing Cash Flow-783.96M-846.96M-1.08B-1.43B-3.13B-3.59B
Financing Cash Flow-5.18B829.23M1.05B-1.63B-782.23M6.47B

D&L Industries Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.43
Price Trends
50DMA
1.43
Negative
100DMA
1.43
Negative
200DMA
1.50
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
45.80
Neutral
STOCH
57.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLNDY, the sentiment is Negative. The current price of 1.43 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.43, and below the 200-day MA of 1.50, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 57.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLNDY.

D&L Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$406.04M8.0711.90%3.70%12.09%8.05%
65
Neutral
$1.18B21.0820.30%0.93%3.31%14.76%
62
Neutral
$1.44B-528.50-0.22%2.49%7.63%-104.57%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
55
Neutral
$405.47M-1.82-51.42%121.37%-264.53%
52
Neutral
$73.57M-23.51-8.12%2.35%-4.66%-201.32%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DLNDY
D&L Industries
1.43
-0.71
-33.26%
FSI
Flexible Solutions International
5.76
-3.83
-39.94%
GEVO
Gevo
1.64
0.00
0.00%
ODC
Oil-Dri Of America
87.90
23.38
36.23%
SCL
Stepan Company
63.42
14.89
30.67%
CNEY
CN Energy Group
0.53
-1.72
-76.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 18, 2026