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D&L Industries (DLNDY) AI Stock Analysis
D&L Industries
(Other OTC:DLNDY)
The overall score reflects solid, resilient financial performance supported by consistent profitability and recent strength in cash generation, offset by elevated and rising leverage and some margin pressure. A favorable valuation—low P/E and decent dividend yield—improves the attractiveness of the stock, while neutral, range-bound technicals neither strongly support nor undermine the investment case. With these factors combined, the stock appears fundamentally sound and reasonably valued, but with balance sheet and cash-flow consistency risks that keep it below the highest tier.
D&L Industries (DLNDY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $331.43M
- Dividend Yield
- 3.98%
- Average Volume (3M)
- 2,798
- Price to Earnings (P/E)
- 7.7
- Beta (1Y)
- 0.08
- Revenue Growth
- 12.09%
- EPS Growth
- 8.05%
- Country
- US
- Employees
- 1,522
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals - Specialty
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 comp...
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 specialty c...
D&L Industries Earnings Call Summary
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.
Q4-2025 Updates
Positive Updates
Negative 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
Financial performance is solid, with strong revenue scale, consistent profitability, and improved recent cash generation, but rising leverage, margin compression, and a volatile cash flow history prevent a top-tier rating.
Income Statement
78PositiveBalance Sheet
74PositiveCash Flow
63Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 55.81B | 55.39B | 40.67B | 33.50B | 43.48B | 30.86B |
| Gross Profit | 7.27B | 7.21B | 6.25B | 5.70B | 6.07B | 4.56B |
| EBITDA | 6.14B | 5.85B | 4.99B | 4.46B | 5.14B | 4.07B |
| Net Income | 2.71B | 2.59B | 2.34B | 2.30B | 3.32B | 2.64B |
Balance Sheet | ||||||
| Total Assets | 52.87B | 53.01B | 48.37B | 42.63B | 40.76B | 36.33B |
| Cash, Cash Equivalents and Short-Term Investments | 3.26B | 3.44B | 2.88B | 2.88B | 3.33B | 5.87B |
| Total Debt | 24.81B | 26.44B | 21.91B | 17.69B | 16.30B | 14.19B |
| Total Liabilities | 30.19B | 30.14B | 26.58B | 21.76B | 20.11B | 17.22B |
| Stockholders Equity | 22.69B | 22.87B | 21.79B | 20.87B | 20.65B | 19.10B |
Cash Flow | ||||||
| Free Cash Flow | 4.61B | -281.39M | -1.04B | 1.14B | -1.72B | -3.39B |
| Operating Cash Flow | 5.41B | 567.84M | 47.52M | 2.65B | 1.98B | 204.45M |
| Investing Cash Flow | -783.96M | -846.96M | -1.08B | -1.43B | -3.13B | -3.59B |
| Financing Cash Flow | -5.18B | 829.23M | 1.05B | -1.63B | -782.23M | 6.47B |
D&L Industries Technical Analysis
Price Trends
Market Momentum
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 1.33 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.37, and below the 200-day MA of 1.47, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 11.90 is Positive, 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
- DLNDY77Outperform
IOSP76Outperform
SXT62Neutral
SCL61Neutral
AVNT58Neutral
ASH56Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DLNDY | 77Outperform | $379.43M | 7.74 | 11.90% | 3.98% | 12.09% | 8.05% |
| IOSP | 76Outperform | $2.46B | 20.34 | 9.15% | 1.79% | 2.87% | 534.76% |
| SXT | 62Neutral | $5.01B | 29.41 | 13.66% | 1.39% | 9.54% | 21.44% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| SCL | 61Neutral | $1.58B | 366.37 | 0.36% | 2.27% | 10.02% | -90.50% |
| AVNT | 58Neutral | $3.93B | 23.03 | 7.17% | 2.57% | 2.36% | 42.56% |
| ASH | 56Neutral | $3.42B | 65.51 | 2.77% | 2.24% | -1.39% | ― |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DLNDY | D&L Industries, Inc. | 1.33 | -0.51 | -27.86% | |
| ASH | Ashland Global Holdings, Inc. | 74.68 | 27.76 | 59.17% | |
| IOSP | Innospec | 99.89 | 27.13 | 37.28% | |
| AVNT | Avient Corporation | 42.84 | 11.74 | 37.74% | |
| SXT | Sensient | 117.63 | 27.14 | 29.99% | |
| SCL | Stepan Company | 69.61 | 28.35 | 68.72% |
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