Tandy Leather Factory, Inc. (TLF) Stock

Tandy Leather Factory, Inc. (TLF) is a Consumer Discretionary stock trading at $2.55 (as of 2026-08-25), with a market capitalization of $20.77M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Tandy Leather Factory, Inc. operates retail and online sales of leather and leathercraft-related products, including leather, tools, hardware, kits, liquids, teaching materials, workbenches, machinery, and accessories, primarily in North America and Spain. It also manufactures certain leathercraft items and provides production services such as cutting, splitting, and assembly for business customers through its Tandy Leather and related brand names.

Understand Tandy Leather Factory, Inc.: how it makes money

Tandy Leather Factory sells leather, hand tools, DIY kits, and workshop equipment to hobbyists and small craft shops through retail stores and online channels. The model is a niche specialty play: committed crafters buy from a network of 101 physical locations concentrated in North America, with modest but steady demand.

A 65% gross margin on specialty leather products is almost fully consumed by the fixed costs of maintaining 101 brick-and-mortar stores, leaving only a 3% operating margin and minimal free cash flow for reinvestment.

Business quality (Weak): Weak. The company runs a real product business but the store-level cost structure erases nearly all product-level profit, leaving an operating margin of 3% and a negative return on equity.

Bull case

  • Niche pricing power persists: Gross margin of 65% reflects a specialty product base (leather, kits, hand tools) where committed hobbyists prioritize material quality over the lowest price, giving Tandy insulation from the discount pressures that hit broader apparel retailers.

Bear case

  • Margins leave no cushion: Operating margin of 3% means nearly all product-level profit is consumed by rent, labor, and store overhead, so a modest drop in foot traffic or an unplanned inventory markdown could push the company into operating losses.
Valuation — source: SEC EDGAR (first-party)
Price$2.55
Market Cap$20.77M
EV / EBITDA24.1
Price / Book0.44
Price / Sales0.28
FCF Yield-71.5%
DCF Value (model)$21.12
DCF Upside vs Price728.2%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$76.32M
Net Margin11.9%
Revenue Growth (YoY)2.6%
EPS Growth (YoY)1010.0%
FCF Growth (YoY)-617.1%
Financial Health — source: SEC EDGAR
Altman Z-Score2.76 (grey)
Valuation vs Sector & Industry
Sector P/E (Consumer Discretionary)20.8
Industry P/E (Apparel)15.3
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBandera Partners LLC ($6.60M)
Institutional Holders Tracked10
Company
SectorConsumer Discretionary
IndustryApparel
CEOJohan Hedberg
Employees414
CountryUS
IPO Date1993-09-27

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TLF earnings history · TLF institutional & insider holders · TLF KPIs & operating metrics · TLF financials · TLF investor presentations & press releases · TLF SEC filings · TLF peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-25.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.