On January 31, 2023, FIRST FOUNDATION ADVISORS (Trades, Portfolio), a renowned investment firm, added 826,712 shares of Tandy Leather Factory Inc (TLF, Financial) to its portfolio. This article provides an in-depth analysis of this transaction, the profiles of the guru and the traded company, and the financial health and performance of Tandy Leather Factory Inc.
Details of the Transaction
FIRST FOUNDATION ADVISORS (Trades, Portfolio) executed the trade at a price of $4.45 per share, resulting in a 0.02% change in their portfolio. The firm now holds a total of 826,712 shares in Tandy Leather Factory Inc, representing 0.18% of their portfolio and 10% of the company's outstanding shares.
Profile of FIRST FOUNDATION ADVISORS (Trades, Portfolio)
Located at 18101 Von Karman Avenue, Irvine, CA, FIRST FOUNDATION ADVISORS (Trades, Portfolio) is a prominent investment firm with a diverse portfolio of 392 stocks. The firm's top holdings include Apple Inc (AAPL, Financial), Alphabet Inc (GOOG, Financial), Microsoft Corp (MSFT, Financial), Berkshire Hathaway Inc (BRK.B, Financial), and United Parcel Service Inc (UPS, Financial). The firm's equity stands at $2.18 billion, with Technology and Financial Services being its top sectors. 
Overview of Tandy Leather Factory Inc
Tandy Leather Factory Inc, a specialty retailer of leather and leathercraft-related items, operates primarily in the United States and Canada. The company's product line includes leather, leatherworking tools, leather dyes and finishes, and do-it-yourself kits. Tandy Leather Factory Inc, which went public on August 1, 1986, has a market capitalization of $34.863 million and a PE ratio of 26.25. The company's current stock price is $4.2. 
GuruFocus Valuation of Tandy Leather Factory Inc
According to GuruFocus, Tandy Leather Factory Inc is modestly undervalued with a GF Value of $4.86. The stock's price to GF Value ratio stands at 0.86, indicating a potential upside. However, since the transaction, the stock has declined by 5.62%.
Performance of Tandy Leather Factory Inc
Since its IPO, Tandy Leather Factory Inc's stock price has decreased by 43.09%. The stock's year-to-date price change ratio is -7.6%. The company has a GF Score of 76/100, indicating good future performance potential. The company ranks 9/10 in Financial Strength, 7/10 in Profitability Rank, 3/10 in Growth Rank, 7/10 in GF Value Rank, and 5/10 in Momentum Rank.
Financial Health of Tandy Leather Factory Inc
Tandy Leather Factory Inc has a Piotroski F-Score of 8, indicating a healthy financial situation. The company's Altman Z score is 4.55, and its cash to debt ratio is 0.75. The company ranks 462 in Cash to Debt, 89 in interest coverage, 654 in ROE, and 589 in ROA.
Growth and Momentum of Tandy Leather Factory Inc
Over the past three years, Tandy Leather Factory Inc has seen a 4.70% growth in revenue and a 34% growth in EBITDA. However, the company's gross margin growth and operating margin growth remain stagnant. The company's RSI 14 Day stands at 57.19, and its Momentum Index 6 - 1 Month is -3.59.
In conclusion, FIRST FOUNDATION ADVISORS (Trades, Portfolio)' acquisition of Tandy Leather Factory Inc shares could potentially yield positive returns given the company's modest undervaluation and good future performance potential. However, the recent decline in the stock's price and its negative year-to-date price change ratio warrant careful monitoring.
