D&L Industries (DLNDY) AI Stock Analysis

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D&L Industries

(Other OTC:DLNDY)

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Rating:65Neutral

Price Target:$1.50▲(10.13% Upside)

Action:downgraded

Date:11/15/26

The score is primarily constrained by weaker cash-flow generation, revenue contraction, and meaningful leverage. Attractive valuation and improved profitability provide support, while technical momentum remains mixed.

Positive Factors

Improving ProfitabilityImproving operating and net margins indicate better cost control and/or product mix, strengthening the earnings base. If maintained, this profitability improvement can support reinvestment, improve resilience across the company’s specialty product portfolio, and enhance returns over the next several quarters.

Negative Factors

Revenue and Gross Margin PressureDeclining revenue combined with lower gross margin points to uneven demand and reduced profitability per unit of sales. Persistent pressure would limit operating leverage, make margin gains harder to sustain, and constrain the company’s ability to grow earnings without further cost control or favorable mix changes.

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

Market Cap: $364.29M
Dividend Yield: 3.87%
Average Volume (3M): 3,592
Price to Earnings (P/E): 8.0
Beta (1Y): 0.03
Revenue Growth: -2.30%
EPS Growth: 10.36%
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...

D&L Industries Earnings Call Summary

Earnings Call Date:Mar 25, 2026(Q4-2025)|% Change Since:-3.06%|Next Earnings Date:May 05, 2021

Earnings Call SentimentNeutral

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.

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

Profitability improved, but revenue declined 3.4%. Leverage remains meaningful, and free cash flow fell 58.3%, limiting the financial score.

Income Statement

67Positive

Balance Sheet

60Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	53.93B	55.39B	40.67B	33.50B	43.48B	30.86B
Gross Profit	7.57B	7.21B	6.25B	5.70B	6.07B	4.56B
EBITDA	6.72B	5.85B	4.99B	4.46B	5.14B	4.07B
Net Income	2.89B	2.59B	2.34B	2.30B	3.32B	2.64B
Balance Sheet
Total Assets	54.90B	53.01B	48.37B	42.63B	40.76B	36.33B
Cash, Cash Equivalents and Short-Term Investments	2.58B	3.44B	2.88B	2.88B	3.33B	5.87B
Total Debt	24.45B	26.44B	21.91B	17.69B	16.30B	14.19B
Total Liabilities	31.45B	30.14B	26.58B	21.76B	20.11B	17.22B
Stockholders Equity	23.45B	22.87B	21.79B	20.87B	20.65B	19.10B
Cash Flow
Free Cash Flow	1.92B	-281.39M	-1.04B	1.14B	-1.72B	-3.39B
Operating Cash Flow	2.59B	567.84M	47.52M	2.65B	1.98B	204.45M
Investing Cash Flow	-649.82M	-846.96M	-1.08B	-1.43B	-3.13B	-3.59B
Financing Cash Flow	-2.49B	829.23M	1.05B	-1.63B	-782.23M	6.47B

D&L Industries Technical Analysis

Technical Analysis SentimentNegative

Last Price1.36

Price Trends

50DMA1.36Positive

100DMA1.40Negative

200DMA1.45Negative

Market Momentum

MACD0.00Negative

RSI50.77Neutral

STOCH57.33Neutral

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 1.36 is above the 20-day moving average (MA) of 1.35, above the 50-day MA of 1.36, and below the 200-day MA of 1.45, indicating a neutral trend. The MACD of 0.00 indicates Negative momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 57.33 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

DLNDY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IOSP	72Outperform	$1.98B	14.15	10.42%	2.23%	4.73%	―
AVNT	70Outperform	$4.10B	22.67	7.52%	2.46%	5.24%	58.61%
DLNDY	65Neutral	$387.52M	8.04	12.67%	3.87%	-2.30%	10.36%
SXT	62Neutral	$4.97B	29.18	13.66%	1.41%	9.54%	21.44%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASH	61Neutral	$3.50B	849.67	0.21%	2.18%	2.08%	―
SCL	55Neutral	$1.51B	349.37	0.36%	2.38%	10.02%	-90.50%

* Basic Materials Sector Average

Performance Comparison

DLNDY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DLNDY	D&L Industries, Inc.	1.36	-0.17	-11.10%
ASH	Ashland Global Holdings, Inc.	76.47	28.22	58.49%
IOSP	Innospec	80.39	9.03	12.65%
AVNT	Avient Corporation	44.66	17.28	63.11%
SXT	Sensient	116.70	25.30	27.68%
SCL	Stepan Company	66.38	24.98	60.33%

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: Nov 15, 2026

D&L Industries AI Stock Analysis