Is TANDY LEATHER FACTORY INC (TLF) Halal?

NASDAQ Consumer Cyclical United States $18M
✗ NOT HALAL
Confidence: 90/100
TANDY LEATHER FACTORY INC (TLF) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 140.1% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. TANDY LEATHER FACTORY INC operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 140.1%
/ 30%
82.3%
/ 30%
2.2%
/ 30%
0.72%
/ 5%
✗ NOT HALAL
DJIM 140.1%
/ 33%
82.3%
/ 33%
2.2%
/ 33%
0.72%
/ 5%
✗ NOT HALAL
MSCI 31.6%
/ 33%
18.6%
/ 33%
0.5%
/ 33%
0.72%
/ 5%
✓ HALAL
S&P 140.1%
/ 33%
82.3%
/ 33%
2.2%
/ 33%
0.72%
/ 5%
✗ NOT HALAL
FTSE 31.6%
/ 33%
18.6%
/ 33%
0.5%
/ 50%
0.72%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
2.1
Forward: 3.9
EPS
$1.10
P/B Ratio
0.3
EV/EBITDA
-282.1
EV: $30M
Revenue
$76M
Growth: 8.7%
Beta
0.7
Low volatility
Current Ratio
5.2

Profitability

Gross Margin 57.0%
Operating Margin -2.8%
Net Margin 11.9%
Return on Equity (ROE) 16.6%
Return on Assets (ROA) -0.7%

Cash Flow & Balance Sheet

Operating Cash Flow-$556,000
Free Cash Flow-$8M
Total Debt$27M
Debt-to-Equity52.1
Current Ratio5.2
Total Assets$87M

Price & Trading

Last Close$2.27
50-Day MA$2.69
200-Day MA$2.94
Avg Volume53K
Beta0.7
52-Week Range
$2.21
$3.78

About TANDY LEATHER FACTORY INC (TLF)

CEO
Mr. Johan Hedberg M.B.A.
Employees
401
Sector
Consumer Cyclical
Industry
Specialty Retail
Country
United States
Exchange
NASDAQ
Market Cap
$18M
Currency
USD

Tandy Leather Factory, Inc., together with its subsidiaries, retails leather and leathercraft-related items in the United States, Canada, and Spain. It offers leather, hand tools, hardware, kits, liquids, teaching materials, open workbenches, machines, and other supplies. The company manufactures leather laces, cut leather pieces, do-it-yourself kits, thread laces, belt strips and straps, and Craftaid tooling template through its stores and website, as well as direct account representative. In addition, it offers production services, including cutting, splitting, and assembly services to commercial and business customers. The company sells its products to retail customers, including hobbyists, schools, camps, other businesses, as well as military and first responders under the Tandy Leather, Eco-Flo, Craftool, CraftoolPro, Dr. Jackson's, and TandyPro brand names. The company was formerly known as The Leather Factory, Inc. and changed its name to Tandy Leather Factory, Inc. in 2005. Tandy Leather Factory, Inc. was founded in 1919 and is headquartered in Fort Worth, Texas.

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Frequently Asked Questions

Is TANDY LEATHER FACTORY INC (TLF) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), TANDY LEATHER FACTORY INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is TANDY LEATHER FACTORY INC's debt ratio?

TANDY LEATHER FACTORY INC's debt ratio is 140.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 31.6%.

What are TANDY LEATHER FACTORY INC's key financial metrics?

TANDY LEATHER FACTORY INC has a market capitalization of $18M, trailing P/E ratio of 2.1, and revenue of $76M. The company maintains a gross margin of 57.0% and a net margin of 11.9%. Return on equity stands at 16.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.