Delta Brands (DLTI) AI Stock Analysis

Delta Brands

(TASE:DLTI)

Select Model

Rating:64Neutral

Price Target:ILA 11,577.00▲(7.19% Upside)

Action:downgraded

Date:08/10/26

Delta Brands' strong financial performance, highlighted by robust cash flows and profitability, is the primary positive factor. However, the stock's technical picture is bearish, with price below all major moving averages, indicating near-term weakness. Valuation appears fair and the dividend yield is attractive. The overall score of 64 suggests a neutral to slightly positive outlook, with the current downtrend being the main risk.

Positive Factors

High ProfitabilitySustained high gross and operating margins imply structural pricing power or a low-cost production model for an apparel manufacturer. This margin cushion supports profitability through cycles, funds reinvestment and dividends, and underpins durable cash flow generation beyond short-term trends.

Negative Factors

Elevated LeverageDebt materially exceeding equity creates a higher-risk capital structure that increases interest expense sensitivity and limits strategic optionality. Elevated leverage amplifies earnings volatility in downturns and constrains capacity for M&A, buybacks, or large reinvestments over the medium term.

Delta Brands (DLTI) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 2.70B
Dividend Yield: 4.07%
Average Volume (3M): 15.11K
Price to Earnings (P/E): 18.0
Beta (1Y): 1.02
Revenue Growth: ―
EPS Growth: ―
Country: Israel
Employees: 1,236
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Delta Brands Business Overview & Revenue Model

Company Description

Delta Israel Brands Ltd., an Israeli company, specializes in the development, promotion, and distribution of apparel and intimate wear collections. Its extensive product range, marketed primarily under the Delta and Fix labels, encompasses women's li...

Delta Brands Financial Statement Overview

Summary

Delta Brands shows solid financial health with strong cash flow ($311M operating cash flow, up 6%), healthy profitability (net margin 10.9%, ROE 28.5%), and moderate debt reduction (debt-to-equity down to 1.26). However, revenue growth has moderated and margins show some volatility, leading to a score of 74.

Income Statement

72Positive

Balance Sheet

68Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.35B	1.30B	1.19B	945.88M	918.77M	906.12M
Gross Profit	803.69M	666.47M	721.92M	566.19M	533.05M	558.72M
EBITDA	429.86M	326.48M	335.61M	176.34M	151.25M	202.70M
Net Income	146.65M	151.63M	158.73M	116.05M	96.87M	138.31M
Balance Sheet
Total Assets	1.43B	1.43B	1.16B	1.20B	960.18M	972.61M
Cash, Cash Equivalents and Short-Term Investments	206.47M	202.93M	125.93M	346.91M	330.23M	356.07M
Total Debt	665.59M	901.78M	369.65M	373.46M	233.04M	242.69M
Total Liabilities	899.29M	896.54M	692.16M	623.87M	451.92M	517.50M
Stockholders Equity	529.64M	528.61M	470.58M	571.78M	508.25M	455.12M
Cash Flow
Free Cash Flow	258.19M	244.64M	111.34M	125.69M	86.90M	194.10M
Operating Cash Flow	311.34M	293.71M	209.81M	185.88M	102.52M	205.76M
Investing Cash Flow	-53.67M	-50.48M	-98.47M	164.08M	-241.76M	-11.46M
Financing Cash Flow	-187.44M	-166.07M	-332.32M	-107.13M	-112.75M	161.78M

Delta Brands Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:DLTI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:FOX	64Neutral	ILS 4.13B	17.65	―	3.54%	11.07%	-1.25%
IL:DLTI	64Neutral	ILS 2.65B	18.04	―	4.07%	―	―
IL:CAST	62Neutral	ILS 1.14B	27.05	―	23.09%	3.53%	-57.85%
IL:DELG	61Neutral	ILS 4.83B	14.48	10.63%	2.13%	-7.17%	-3.00%
IL:MAXO	60Neutral	ILS 4.56B	30.44	―	2.80%	11.28%	35.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IL:DLTI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:DLTI	Delta Israel Brands Ltd	10800.00	710.66	7.04%
IL:DELG	Delta Galil Industries	18520.00	246.76	1.35%
IL:FOX	Fox-Wizel	30480.00	-4764.15	-13.52%
IL:CAST	Castro Model Ltd.	12420.00	-7380.00	-37.27%
IL:MSBI	Hamashbir 365 Ltd	62.10	-56.00	-47.42%
IL:MAXO	Max Stock Ltd.	3316.00	1049.74	46.32%

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 10, 2026

Delta Brands AI Stock Analysis