Delta Galil (DELG) AI Stock Analysis

• Market Cap: 4.28B
• Dividend Yield: 2.8%
• Average Volume (3M): 16.82K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.94
• Revenue Growth: 7.95%
• EPS Growth: -8.44%
• Country: IL
• Employees: 25,510
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 206.40
• Shares Outstanding: 26,104,824
• 10 Day Avg. Volume: 12,710
• 30 Day Avg. Volume: 16,823
• PEG Ratio: 1.56
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 14.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 18,412.76
• Price Target Upside: 6.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: 18,414.00 ▲(7.00% Upside)

Delta Galil's overall stock score is primarily influenced by its solid financial performance, despite challenges in revenue growth and cash flow management. Technical indicators suggest a bearish trend, while valuation metrics are moderate. The absence of significant earnings call insights or corporate events leaves the financial performance as the most significant factor.

Delta Galil Business Overview & Revenue Model

Company Description

Delta Galil Industries Ltd. engages in the design, development, production, marketing, and sale of men and women apparel products worldwide. It operates through Brands, Private Label, Delta Israel, Seven for All Mankind, and other segments. The Brands segment operates brands, such as Schiesser, Eminence, Splendid, PJ Salvage, and company licensed brands comprising Columbia, Tommy Hilfiger, and Polo Ralph Lauren, Adidas, Wolford, and others, in underwear , leisure wear, and sleep wear categories. The Private Label segment operates private labels in category of underwear, leisure wear, and sleep wear under Nike, Victoria's Secret, Walmart, Target, and other brands. The Delta Israel segment design, develop, and markets branded undergarments for women and men, sleepwear, socks, children clothing products under Delta and Fix brands and distributes through stores in Israel and websites, as well as retails and wholesales its products. The Seven for All Mankind segment operates clothing in the Denim category for women, men, and children. The Other segment operates Bare Necessities and Organic Basics brands. Delta Galil Industries Ltd. was incorporated in 1975 and is headquartered in Caesarea, Israel.

How the Company Makes Money

Delta Galil makes money through the design, manufacture, and sale of apparel products. Its revenue streams primarily include sales from private label products to leading retailers, branded products under its own label, and e-commerce platforms. The company collaborates with well-known fashion brands and retailers to produce exclusive collections, which are sold through various distribution channels. Additionally, Delta Galil benefits from strategic acquisitions and partnerships that expand its market reach and product offerings. The company focuses on leveraging its global manufacturing capabilities and technological advancements to drive growth and profitability.

Delta Galil Financial Statement Overview

Summary

Delta Galil demonstrates solid profitability with stable gross profit margins and manageable leverage. However, it faces challenges in revenue growth and cash flow management, with a decline in free cash flow growth and negative revenue growth.

Income Statement

Delta Galil's income statement shows a stable gross profit margin around 41.7% in TTM, with a slight decline in net profit margin to 4.2%. Revenue growth is negative at -6.2% in TTM, indicating a contraction compared to previous periods. EBIT and EBITDA margins are healthy, though slightly declining. Overall, the company maintains profitability but faces challenges in revenue growth.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.72 in TTM, indicating manageable leverage. Return on equity is stable at 11%, suggesting efficient use of equity. The equity ratio is not explicitly calculated but appears stable given the consistent stockholders' equity growth. Overall, the balance sheet is solid but shows room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -32.6% in TTM, indicating potential liquidity concerns. The operating cash flow to net income ratio is 0.29, suggesting moderate cash generation relative to net income. Free cash flow to net income ratio is 0.33, indicating some cash flow challenges. Overall, cash flow management requires attention to improve liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.09B	2.05B	1.86B	2.03B	1.95B	1.45B
Gross Profit	872.32M	856.29M	760.60M	785.19M	776.71M	523.68M
EBITDA	199.05M	239.97M	235.01M	252.93M	262.62M	87.16M
Net Income	88.05M	86.41M	79.21M	109.48M	112.78M	-39.85M
Balance Sheet
Total Assets	1.96B	1.88B	1.79B	1.85B	1.77B	1.69B
Cash, Cash Equivalents and Short-Term Investments	88.69M	120.51M	174.46M	190.91M	230.13M	230.84M
Total Debt	597.77M	521.09M	549.14M	614.78M	544.46M	735.56M
Total Liabilities	1.11B	1.08B	1.02B	1.14B	1.13B	1.22B
Stockholders Equity	826.04M	779.41M	737.89M	682.07M	623.43M	476.78M
Cash Flow
Free Cash Flow	55.82M	96.22M	177.83M	-24.12M	136.37M	196.96M
Operating Cash Flow	170.84M	203.02M	230.81M	31.53M	166.53M	218.41M
Investing Cash Flow	-110.14M	-104.01M	8.55M	-116.04M	-32.96M	-34.77M
Financing Cash Flow	-145.16M	-148.85M	-194.51M	-6.83M	-134.30M	-67.88M

Delta Galil Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17210.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:DELG, the sentiment is Neutral. The current price of 17210 is above the 20-day moving average (MA) of 17160.00, below the 50-day MA of 17618.71, and below the 200-day MA of 18358.98, indicating a neutral trend. The MACD of -249.98 indicates Positive momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 31.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:DELG.

Delta Galil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFRLF	73 Outperform	279.32M	6.59	14.26%	9.50%	-5.49%	-25.51%
CAST	72 Outperform	1.38B	13.93	10.92%	18.52%	―	―
DLTI	71 Outperform	2.38B	14.99	31.61%	3.05%	―	―
DELG	63 Neutral	4.28B	13.21	11.23%	2.80%	7.95%	-8.44%
FOX	62 Neutral	4.68B	19.79	13.95%	3.79%	15.66%	11.04%
ECP	62 Neutral	2.55B	30.15	8.00%	1.54%	5.18%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%