TLF - Tandy Leather Factory: Intrinsic Value Discount

2024-03-26 06:39:00 ET

Summary

• TLF is an intrinsically and relatively cheap investment based on consistent profitable FCF and growing margins.
• Deep value-based and long-term owners provide a margin of safety and offer constructive activism.
• For the year ending 2023, Tandy shows continued profit and cash growth in a difficult retail environment with high inflation.
• Optionality exists, as the company’s fully owned corporate headquarters has been listed with a broker for sale.

Tandy Leather ( TLF ), founded in 1919, is a consistently profitable leather crafting retail leader. Tandy sells leather and leather craft-related items primarily through retail stores, websites, or direct account representatives. Tandy has 101 stores in 40 states, six provinces in Canada, and one store in Spain. Several smaller, privately family owned competitors exist, including Double Eagle Leathersmith, Montana Leather Company, and Weaver Leather Supply....

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