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iFabric Corp. (TSE:IFA)
:IFA
Canadian Market
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iFabric (IFA) AI Stock Analysis

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TSE:IFA

iFabric

(TSX:IFA)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
C$1.50
▲(8.70% Upside)
iFabric's strong financial performance, characterized by robust revenue growth and improved profitability, is the most significant factor driving the score. Technical analysis indicates positive momentum, though valuation concerns due to a high P/E ratio slightly temper the overall outlook.

iFabric (IFA) vs. iShares MSCI Canada ETF (EWC)

iFabric Business Overview & Revenue Model

Company DescriptioniFabric Corporation (IFA) is a Canadian company engaged in the development and commercialization of innovative textile technologies and products. Operating primarily in the textile and apparel sectors, iFabric specializes in producing advanced fabrics with enhanced properties such as moisture management, odor control, and antimicrobial features. The company also develops performance apparel and offers its expertise in fabric treatments, catering to a diverse range of industries including fashion, healthcare, and sports.
How the Company Makes MoneyiFabric generates revenue through several key streams. Primarily, it earns money by selling advanced textile products to manufacturers and brands in the apparel industry. These products include performance fabrics treated with proprietary technologies that enhance their usability and longevity. Additionally, iFabric has established partnerships with various companies to co-develop specialized fabrics, which can lead to licensing agreements and royalties. The company also engages in direct sales of its own branded apparel, further diversifying its income. Revenue is bolstered by ongoing research and development efforts that keep its product offerings at the cutting edge of textile technology, enabling it to maintain competitive advantages in the market.

iFabric Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2024)
|
% Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with record revenue and expectations of significant growth in the coming quarters, supported by strong relationships with major retailers like Target. Despite some challenges such as increased expenses and pending EPA approval, the company's strong balance sheet and strategic growth initiatives indicate a promising future.
Q2-2024 Updates
Positive Updates
Record Quarterly Revenue
The company reported a record Q2 revenue of $5.8 million, marking a 10% increase from the previous year's $5.3 million, driven by the Intelligent Fabrics division.
Strong Gross Margin
Gross margin increased to 42% from 40%, attributed to new programs with better margins.
Legal Claim Recovery
The company collected $400,000 from an ongoing legal claim they had previously impaired.
Strong Balance Sheet
The company maintains a strong, underleveraged balance sheet with an unutilized credit line of $6.75 million.
Significant Expected Growth
Guidance for the year suggests over 50% growth for the last two quarters, with Q4 anticipated to be over $10 million in revenue, driven by four major programs.
Major U.S. Retailer Acquisition
Acquired a major U.S. retailer, Target, and established a relationship for ongoing programs.
Negative Updates
Increased Administrative and Selling Expenses
A 34% increase in admin and selling expenses due to increased personnel and travel costs.
Cash Decrease
Cash reserves decreased by about $500,000 compared to the previous quarter due to deposits on future purchases.
Potential Impact of External Factors
Concerns about potential impacts from a railroad strike, though not immediate, could affect logistics if prolonged.
Ongoing EPA Approval Delays
EPA approval for a key product is still pending, with no clear timeline for completion.
Company Guidance
During the Q2 2024 earnings call for iFabric (IFA.TO), several key metrics and forward-looking guidance were discussed. Revenue for the quarter reached a record $5.8 million, marking a 10% increase from the previous year, primarily driven by the Intelligent Fabrics division. The gross margin improved to 42% from 40%, reflecting strong performance from new programs. Administrative and selling expenses rose by 34% due to increased personnel and travel costs, as the company invests in infrastructure to support anticipated growth. Despite a $500,000 decrease in cash, working capital increased slightly to $18 million. iFabric maintains a strong balance sheet with an unutilized credit line of $6.75 million. Looking ahead, the company anticipates significant growth in Q4, with projected revenues expected to exceed $10 million, contributing to a total annual revenue target of over $30 million, representing more than 50% growth in the latter half of the year. The management reiterated confidence in achieving these targets, despite potential external challenges like a railroad strike, and highlighted ongoing efforts to expand into new market segments, particularly in the U.S., while also addressing questions about potential share buybacks, insider share purchases, and the status of regulatory approvals.

iFabric Financial Statement Overview

Summary
iFabric demonstrates strong financial health with robust revenue growth and improved profitability. The balance sheet reflects low leverage and strong equity financing, enhancing financial stability. Cash flow management has improved, yet there is scope for enhancing cash conversion rates. Overall, iFabric is on a positive trajectory with opportunities to strengthen cash flow dynamics.
Income Statement
78
Positive
The company shows strong revenue growth with a 20.3% increase from the previous year. Gross profit margin stands at 41.2%, indicating efficient cost management. The net profit margin improved significantly, moving from a negative to 6.0%, showcasing enhanced profitability. EBIT and EBITDA margins are also positive, reflecting operational efficiency.
Balance Sheet
72
Positive
The debt-to-equity ratio is low at 0.081, indicating prudent financial leverage. Return on Equity (ROE) is solid at 7.1%, showing effective use of equity. The equity ratio is strong at 78.4%, suggesting financial stability with a high proportion of assets financed by equity.
Cash Flow
65
Positive
The free cash flow growth rate improved significantly, turning positive after a previous decline, signaling better cash management. The operating cash flow to net income ratio is low at 0.18, suggesting potential cash flow volatility. The free cash flow to net income ratio is 0.13, indicating room for improvement in converting net income into cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.33M22.72M19.74M19.76M11.52M
Gross Profit11.27M8.84M7.03M7.76M4.30M
EBITDA2.11M-2.21M-27.09K3.21M-551.96K
Net Income1.63M-1.69M-452.46K2.37M-624.71K
Balance Sheet
Total Assets29.49M25.91M27.37M27.63M17.51M
Cash, Cash Equivalents and Short-Term Investments2.06M1.57M944.73K8.90M1.16M
Total Debt1.88M2.03M1.24M1.27M1.32M
Total Liabilities6.35M5.21M4.60M5.35M8.17M
Stockholders Equity23.13M20.69M22.75M22.27M9.34M
Cash Flow
Free Cash Flow208.92K644.99K-8.45M-2.48M-1.24M
Operating Cash Flow301.78K833.77K-8.21M-2.22M-1.06M
Investing Cash Flow-52.86K-138.38K-242.76K-253.40K-178.02K
Financing Cash Flow-214.74K-14.42K41.93K10.46M205.15K

iFabric Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.38
Price Trends
50DMA
1.18
Negative
100DMA
1.07
Positive
200DMA
1.06
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
42.55
Neutral
STOCH
9.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IFA, the sentiment is Neutral. The current price of 1.38 is above the 20-day moving average (MA) of 1.26, above the 50-day MA of 1.18, and above the 200-day MA of 1.06, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 9.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:IFA.

iFabric Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$11.93B18.2831.12%1.51%6.64%27.37%
70
Outperform
$1.88B41.0111.35%2.45%-17.73%
66
Neutral
C$35.15M38.034.36%18.44%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
52
Neutral
C$54.56M-1.67%22.39%90.55%
46
Neutral
C$23.77M-8.92-16.28%-3.10%67.01%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IFA
iFabric
1.13
<0.01
0.89%
TSE:GIL
Gildan Activewear
82.00
14.66
21.78%
TSE:AEG
Aegis Brands
0.29
-0.13
-30.95%
TSE:UNI
Unisync
1.26
-0.40
-24.10%
TSE:GOOS
Canada Goose Holdings
19.94
6.39
47.16%
TSE:MENE
Mene
0.18
0.05
38.46%

iFabric Corporate Events

Business Operations and StrategyPrivate Placements and Financing
iFabric Corp Secures $2.5 Million Trade Finance Facility with Ebury
Positive
Oct 27, 2025

iFabric Corp has secured a $2.5 million unsecured trade finance facility with Ebury Partners Canada Ltd. to enhance financial flexibility for growth and expansion. This facility, alongside an existing $12 million secured credit facility, is expected to support iFabric’s sales growth objectives and help manage foreign currency risks, reflecting a strategic move to strengthen its market position.

The most recent analyst rating on (TSE:IFA) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on iFabric stock, see the TSE:IFA Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
iFabric and Doctor’s Choice Collaborate on Advanced Medical Apparel
Positive
Sep 29, 2025

iFabric Corp’s subsidiary, IFTNA, has entered a licensing agreement with Mercury Athletics LLC to design, manufacture, and market scrubs and medical apparel under the Doctor’s Choice brand. This collaboration aims to integrate IFTNA’s textile technologies, including PROTX2®, to enhance infection-prevention and comfort in healthcare apparel, potentially strengthening iFabric’s position in the healthcare sector.

The most recent analyst rating on (TSE:IFA) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on iFabric stock, see the TSE:IFA Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
iFabric Renews Partnership with TUMI to Enhance Travel Products with Antimicrobial Technology
Positive
Sep 22, 2025

iFabric Corp. has announced the renewal of its license agreement with TUMI, Inc., allowing the continued integration of its PROTX2® antimicrobial solutions in select TUMI products for another five years. This partnership highlights the commitment of both companies to deliver performance, durability, and protection in travel essentials, with PROTX2 being featured in various TUMI collections, enhancing their product offerings with eco-friendly antimicrobial solutions.

The most recent analyst rating on (TSE:IFA) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on iFabric stock, see the TSE:IFA Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
iFabric Expands PROTX2 Technology to UK and EU with Marks & Spencer Partnership
Positive
Sep 3, 2025

iFabric Corp. has announced the expansion of its PROTX2 technology into the UK and EU markets, with Marks & Spencer adopting this technology for its Autograph collections. This strategic move marks iFabric’s shift beyond its North American focus, highlighting growing global demand for performance-enhanced fabrics and reinforcing its presence in new regional markets.

The most recent analyst rating on (TSE:IFA) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on iFabric stock, see the TSE:IFA Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
iFabric’s Antimicrobial Scrubs Prove Effective in Infection Control
Positive
Aug 19, 2025

iFabric Corp. has announced the publication of a clinical trial demonstrating the effectiveness of their PROTX2® and ecoPEL™ treated scrubs in reducing bacterial contamination in healthcare environments. The study, published in the Journal of Hospital Infection, highlights significant reductions in bacterial loads on scrubs, positioning iFabric’s technologies as a leading solution in infection prevention. This breakthrough offers substantial market opportunities for iFabric, as it addresses a critical need in healthcare-associated infection control, potentially reducing infection rates, readmissions, and hospital costs while extending protection beyond hospital settings.

The most recent analyst rating on (TSE:IFA) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on iFabric stock, see the TSE:IFA Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
iFabric Corp Reports Stable Q2 & H1 2025 Results Amid Market Challenges
Neutral
Aug 14, 2025

iFabric Corp reported its financial results for Q2 and H1 2025, showing stable revenues despite challenges such as U.S. tariffs and exchange losses. The company experienced a slight decrease in overall revenues due to brand advertising contributions and a weakening U.S. dollar, but it remains optimistic about future growth, with record-level deposits for future deliveries. The Intimate Apparel Division saw a 10% revenue increase, while the Intelligent Fabrics Division faced a 7% decline. iFabric is poised for expansion in the U.S. market, supported by strategic supplier and customer negotiations.

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: Oct 23, 2025