Tokyo Lifestyle Co., Ltd. (TKLF) vs Tandy Leather Factory, Inc. (TLF)

Tokyo Lifestyle Co., Ltd. and Tandy Leather Factory, Inc. are both Specialty Retail companies. Tandy Leather Factory, Inc. is the larger, with a market value of $21.1M against $7.2M — 3.0× the size. Tandy Leather Factory, Inc. has negative trailing earnings, so its P/E is not meaningful; Tokyo Lifestyle Co., Ltd. trades at 6.1×. Tokyo Lifestyle Co., Ltd. has the higher net margin (1.96% vs −2.14%) and the higher return on invested capital (0.00% vs −0.59%). Across the 19 metrics below, Tandy Leather Factory, Inc. leads on 10 and Tokyo Lifestyle Co., Ltd. on 9.

Valuation

Metric TKLF TLF Specialty Retail median
P/E 6.07 n/m 17.14
P/S 0.10 0.28 0.48
P/B 1.09 0.46 1.71
Price to free cash flow n/m n/m 13.04
EV/EBITDA 5.13 2.85 8.92
EV/Sales 0.24 0.24 0.64
Earnings yield 16.46% (6.84%) 3.85%
Free cash flow yield (35.72%) (10.73%) 3.02%

Profitability

Metric TKLF TLF Specialty Retail median
Gross margin 17.56% 59.49% 37.89%
Operating margin 0.00% (0.50%) 3.66%
Net margin 1.96% (2.14%) 1.42%
Free cash flow margin 0.00% (2.98%) 1.44%
Return on equity 0.00% (3.17%) 2.58%
Return on assets 0.00% (2.09%) 0.25%
Return on invested capital 0.00% (0.59%) 0.00%

Growth

Metric TKLF TLF Specialty Retail median
Revenue growth (TTM) — 3.45% 3.35%
EPS growth (last fiscal year) (90.21%) 1,122.22% —
Revenue growth, 5-year CAGR 11.00% 3.56% 3.70%
Net income growth, 5-year CAGR (33.53%) 0.00% 0.00%

Health

Metric TKLF TLF Specialty Retail median
Debt to equity 1.55 0.00 0.27
Current ratio 1.30 4.55 1.35
Net debt to EBITDA 14.09 (3.10) 0.24

Dividend

Metric TKLF TLF Specialty Retail median
Dividend yield — — 1.73%
Payout ratio 0.00 — 0.00

Size

Metric TKLF TLF Specialty Retail median
Market cap 7.15m 21.14m 348.57m

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