Talon International, Inc. (TALN) Stock Price & Analysis

Talon International, Inc. (TALN) Consumer Business Overview

Talon International, Inc. provides apparel components and accessories, including zippers and trim, to fashion manufacturers and retailers globally. With a focus on branded trim and outsourced services, Talon aims to enhance apparel products and supply chain efficiency in a competitive consumer cyclical market.

What Is the Investment Thesis for TALN?

Talon International, Inc. presents a focused play on the apparel supply chain, providing essential components and services to a global customer base. With a P/E ratio of 29.41 and a modest profit margin of 0.5%, the company's valuation reflects the challenges and opportunities within the apparel manufacturing sector. A gross margin of 36.8% indicates a reasonable level of efficiency in its operations. Growth catalysts include expanding its outsourced trim management services and penetrating new geographic markets. Potential risks include fluctuations in raw material costs and competition from other apparel component suppliers. The company's beta of -0.84 suggests a lower sensitivity to market movements compared to its peers.

Based on FMP financials and quantitative analysis

TALN Key Highlights

Talon International, Inc. operates within the Consumer Cyclical sector, specifically the Apparel - Manufacturers industry.

• The company's gross margin stands at 36.8%, reflecting its ability to manage production costs and pricing strategies.
• Talon International, Inc. has a P/E ratio of 29.41, suggesting investor expectations regarding its future earnings potential.
• The company's beta of -0.84 indicates a lower volatility compared to the overall market.
• Talon International, Inc. serves a global market through its sales force in the United States, Asia, and Europe.

Who Are TALN's Competitors?

TALN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TALN's Key Strengths?

Established Talon brand name.

• Global sales and distribution network.
• Comprehensive product range.
• Outsourced trim management services.

What Are TALN's Weaknesses?

Low profit margin of 0.5%.

• Dependence on the apparel industry.
• Limited financial resources compared to larger competitors.
• OTC market listing may limit investor access.

What Could Drive TALN Stock Higher?

Potential expansion into new geographic markets in Asia and Latin America.

• Continued growth in outsourced trim management services.
• Development and launch of innovative apparel components and accessories.

What Are the Key Risks for TALN?

Financial-distress signal — its Altman Z-Score of -1.05 sits in the distress zone (elevated bankruptcy risk).

• Fluctuations in raw material costs affecting profitability.
• Intense competition from other apparel component suppliers.
• Changes in fashion trends impacting demand for Talon's products.
• Economic downturns reducing consumer spending on apparel.
• Risks associated with operating on the OTC market, including limited liquidity and disclosure.

What Are the Growth Opportunities for TALN?

• Expanding Outsourced Trim Management Services: Talon can further penetrate the market for outsourced trim design, sourcing, and management services. This represents a significant growth opportunity as apparel manufacturers increasingly seek to streamline their supply chains and focus on core competencies. By offering custom branded trim components and comprehensive management solutions, Talon can capture a larger share of this market, estimated to be worth billions of dollars globally. Timeline: Ongoing.
• Penetrating Emerging Markets: Talon has the opportunity to expand its presence in emerging markets, particularly in Asia and Latin America, where apparel manufacturing is growing rapidly. By establishing a stronger foothold in these regions, Talon can tap into new customer bases and diversify its revenue streams. This expansion could involve establishing new sales offices, partnering with local distributors, or acquiring existing businesses. Timeline: 2-3 years.
• Developing Innovative Product Solutions: Talon can invest in research and development to create innovative apparel components and accessories that meet the evolving needs of its customers. This could include developing sustainable materials, incorporating smart technologies into trim components, or creating new designs that enhance the functionality and aesthetics of apparel products. By staying ahead of the curve in product innovation, Talon can differentiate itself from competitors and capture new market share. Timeline: Ongoing.
• Strengthening Relationships with Key Customers: Talon can focus on strengthening its relationships with key customers, such as major apparel brands and retailers. By providing exceptional service, customized solutions, and timely delivery, Talon can become a trusted partner and secure long-term contracts. This could involve establishing dedicated account teams, offering value-added services, or collaborating on joint product development initiatives. Timeline: Ongoing.
• Acquiring Complementary Businesses: Talon can pursue strategic acquisitions of complementary businesses that expand its product offerings, geographic reach, or technological capabilities. This could include acquiring companies that specialize in specific types of trim components, operate in new geographic markets, or possess innovative technologies related to apparel manufacturing. By carefully selecting and integrating acquisitions, Talon can accelerate its growth and enhance its competitive position. Timeline: 3-5 years.

What Are TALN's Competitive Advantages?

• Established Talon brand name in zippers.
• Global sales force and distribution network.
• Comprehensive range of apparel components and accessories.
• Outsourced trim design and management services.

What Does TALN Do?

Founded in 1980 and headquartered in Woodland Hills, California, Talon International, Inc. has evolved from Tag-It Pacific, Inc. into a key supplier of apparel components and accessories. The company's core business revolves around manufacturing and distributing a wide array of products, including metal, coil, and plastic zippers under the well-known Talon brand. Beyond zippers, Talon offers comprehensive apparel trim components such as tags, labels, buttons, rivets, leather patches, woven labels, heat transfer seals, tapes, ribbons, printed marketing material, polybasic, packing cartons, and hangers. They also provide specialized products like Flex-It films, adhesive films, overlay films, seam sealing tapes, metal fasteners, Tekfit stretch waistbands, shirt collars, and inner pocketing panels, as well as specialty stretch technology for interlinings. Talon extends its services to outsourced trim design, sourcing, and management, offering custom branded trim components to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. The company maintains a global presence with its own sales force in the United States, Hong Kong, China, India, Indonesia, Vietnam, and Bangladesh, complemented by sales representatives in Europe, ensuring a widespread distribution network.

What Products and Services Does TALN Offer?

• Manufactures metal, coil, and plastic zippers under the Talon brand.
• Provides apparel trim components, including tags, labels, and buttons.
• Offers Flex-It films, adhesive films, and seam sealing tapes.
• Supplies metal fasteners and stretch waistbands.
• Provides outsourced trim design, sourcing, and management services.
• Supplies custom branded trim components.
• Offers specialty stretch technology for interlinings.

How Does TALN Make Money?

• Manufacturing and selling apparel components and accessories.
• Providing outsourced trim design, sourcing, and management services.
• Supplying custom branded trim components to apparel manufacturers and retailers.
• Generating revenue through direct sales and sales representatives.

What Industry Does TALN Operate In?

Talon International, Inc. operates within the apparel manufacturing industry, a segment of the broader consumer cyclical sector. This industry is characterized by evolving fashion trends, global supply chains, and intense competition. Companies like Talon play a crucial role in providing essential components and services to apparel brands and retailers. The market is influenced by factors such as consumer spending, trade policies, and technological advancements in textile production. Talon's focus on branded trim and outsourced services positions it to capitalize on the increasing demand for supply chain efficiency and product differentiation within the apparel industry.

Who Are TALN's Key Customers?

• Manufacturers of fashion apparel.
• Specialty retailers.
• Mass merchandisers.

How Talon International, Inc. Is Valued

Talon International, Inc. carries a market capitalization of $4.62M, placing it in the micro-cap category.

Company Profile

Talon International, Inc. operates in the Apparel - Manufacturers industry within the Consumer Cyclical sector. It is headquartered in Woodland Hills, US. The company is led by CEO Larry Dyne. TALN has traded publicly since 1998.

Return on equity for Talon International, Inc. stands at 1.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.7%, showing how much profit it generates from its asset base. TALN trades at a trailing price-to-earnings ratio of 29.41, roughly in line with the Consumer Cyclical sector average of ~32.50x. Its free cash flow yield is 23.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.39 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.3%, the inverse of the P/E and a quick read on earnings relative to price.

Talon International, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -1.05 places it in the distress zone, a signal of elevated financial risk.

12 transactions · 1 purchases, 0 sales, 11 other transactions · 9 identified insiders · most recent available transactions. Purchases and sales use the reported transaction category. Other transactions include awards, exercises, gifts, withholding and unclassified activity; an acquisition or disposition alone is not a purchase or sale. These records do not establish intent.

TALN Financials

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TALN Analyst Consensus

TALN MoonshotScore

What Investors Ask About Talon International, Inc. (TALN) — Consumer Discretionary

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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