Delta Apparel, Inc. (DLA) | Investment Case

1. Company Snapshot

1.a. Company Description

Delta Apparel, Inc., through its subsidiaries, designs, manufactures, sources, and markets activewear and lifestyle apparel products in the United States and internationally.The company operates through two segments, Delta Group and Salt Life Group.It offers on-demand digitally printed apparel products under the DTG2Go brand; silhouettes and fleece products; performance shirts that keep athletes dry under the Delta Dri line brand; ringspun garments; Delta Soft apparel products; and heritage, mid- and heavier-weight tee shirts under the Delta Pro Weight and Magnum Weight brand names, as well as polos, outerwear, headwear, bags, and other accessories.

The company also distributes its products to various audience, which includes sporting goods and outdoor retailers, specialty and resort shops, farm and fleet stores, department stores, and mid-tier retailers, as well as through www.soffe.com website.In addition, it offers apparel, swimwear, board shorts, sunglasses, bags, and accessories under the Salt Life brand name; and craft beer under the Salt Life Lager brand through surf shops, specialty stores, department stores, and outdoor retailers, as well as through its ecommerce site www.saltlife.com.Delta Apparel, Inc.

was incorporated in 1999 and is headquartered in Duluth, Georgia.

Show Full description

1.b. Last Insights on DLA

Delta Apparel, Inc. (DLA) stock plummeted -52.0% over the past 3 weeks, with no apparent news or filings from the company to explain the decline. The lack of transparency has fueled market uncertainty, potentially contributing to the significant drop in stock value. The absence of new products, sales, or acquisitions has likely exacerbated the situation, leaving investors searching for answers.

1.c. Company Highlights

Last Price	0.58
Change Percentage	16.00%
Open	0.47
Previous Close	0.5
Market Cap ( Millions)	4
Volume	4313309
Year High	11.02
Year Low	0.4
M A 50	1.6
M A 200	5.22

FCF Yield	205.30%
Dividend Yield	0.00%
ROE	-19.87%
Debt / Equity	147.04%
Net Debt / EBIDTA	-1095.22%
Price To Book	0.03
Price Earnings Ratio	-0.12
Price To FCF	0.49
Price To sales	0.01
EV / EBITDA	-11.15

2. Transcript Summary

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3. NewsRoom

Fujifilm Awarded Exclusive Defense Logistics Agency (DLA) Contract for its Surgical C-Arm Systems

Feb -25

Source: globenewswire.com

Why Is Delta Apparel (DLA) Stock Down 34% Today?

Jul -01

Source: investorplace.com

Delta Apparel Announces Reporting Date for Fiscal 2024 Second Quarter Results

May -02

Source: Business Wire

Delta Apparel (DLA) Reports Wide-Than-Expected Loss in Q1

Feb -13

Source: Zacks Investment Research

Delta Apparel (DLA) Reports Q1 Loss, Lags Revenue Estimates

Feb -12

Source: Zacks Investment Research

Delta Apparel, Inc. (DLA) Q1 2024 Earnings Call Transcript

Feb -12

Source: Seeking Alpha

Delta Apparel Reports First Quarter Fiscal 2024 Results

Feb -12

Source: businesswire.com

Delta Apparel Announces Reporting Date for Fiscal 2024 First Quarter Results

Feb -06

Source: Business Wire

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.47%)

6. Segments

Delta Group

Expected Growth: 9.33%

Delta Group's 9.33% growth is driven by increasing demand for activewear and outdoor apparel, strategic acquisitions, and expansion into new markets. The company's focus on sustainability, innovative products, and strong e-commerce platform also contribute to its growth. Additionally, the rise of athleisure wear and growing popularity of outdoor activities further boost sales.

Salt Life Group

Expected Growth: 10.33%

Salt Life Group's 10.33% growth is driven by increasing demand for outdoor apparel, expansion into new markets, and successful marketing efforts. The brand's strong online presence, social media engagement, and influencer partnerships have contributed to its growth. Additionally, the company's focus on sustainability and eco-friendly products has resonated with environmentally conscious consumers, further boosting sales.

7. Detailed Products

Activewear

Delta Apparel offers a wide range of activewear products, including t-shirts, tank tops, and sweatpants, designed for comfort and performance.

Bleisure Apparel

Delta Apparel's bleisure apparel combines business casual with athletic wear, offering a stylish and comfortable solution for the modern professional.

Core Apparel

Delta Apparel's core apparel line includes basic tees, fleece, and other essential items, offering high-quality, affordable, and versatile apparel for everyday wear.

Outdoor Apparel

Delta Apparel's outdoor apparel line is designed for outdoor enthusiasts, offering high-performance, water-resistant, and breathable clothing for various outdoor activities.

Sustainable Apparel

Delta Apparel's sustainable apparel line is made from eco-friendly materials, reducing environmental impact while maintaining high-quality and comfort.

8. Delta Apparel, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Delta Apparel, Inc. faces moderate threat from substitutes due to the availability of alternative apparel products from competitors.

Bargaining Power Of Customers

Delta Apparel, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Delta Apparel, Inc. relies on a few large suppliers for raw materials, giving them moderate bargaining power.

Threat Of New Entrants

The apparel industry has high barriers to entry, making it difficult for new entrants to compete with established players like Delta Apparel, Inc.

Intensity Of Rivalry

The apparel industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	59.52%
Debt Cost	8.39%
Equity Weight	40.48%
Equity Cost	9.84%
WACC	8.98%
Leverage	147.04%

11. Quality Control: Delta Apparel, Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Vince

A-Score: 4.3/10

Value: 9.6

Growth: 2.7

Quality: 4.0

Yield: 0.0

Momentum: 9.5

Volatility: 0.0

1-Year Total Return ->

FIGS

A-Score: 4.1/10

Value: 1.7

Growth: 8.8

Quality: 5.8

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

Delta Apparel

A-Score: 3.4/10

Value: 10.0

Growth: 1.7

Quality: 2.9

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

Ubiquiti

A-Score: 3.0/10

Value: 8.3

Growth: 1.3

Quality: 3.2

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

Hanesbrands

A-Score: 3.0/10

Value: 3.5

Growth: 0.9

Quality: 4.5

Yield: 2.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

Xcel Brands

A-Score: 2.7/10

Value: 9.2

Growth: 2.4

Quality: 4.1

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-11.19%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.98%

Delta Apparel, Inc. - US2473681037

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DLA

1.c. Company Highlights

Cheaper

Lower Growth

Weak Momentum

Earnings Miss

Revenues Miss

More Volatile

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.47%)

6. Segments

Delta Group

Expected Growth: 9.33%

Salt Life Group

Expected Growth: 10.33%

7. Detailed Products

Activewear

Bleisure Apparel

Core Apparel

Outdoor Apparel

Sustainable Apparel

8. Delta Apparel, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Delta Apparel, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.58$

Current Price

0.58$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA