DB:ETH

Stock Analysis Report

Ethan Allen Interiors

Executive Summary

Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in North America, Asia, the Middle East, and Europe.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Ethan Allen Interiors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ETH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

ETH

0.02%

DE Consumer Durables

-0.9%

DE Market


1 Year Return

-20.7%

ETH

3.1%

DE Consumer Durables

12.8%

DE Market

Return vs Industry: ETH underperformed the German Consumer Durables industry which returned 3.1% over the past year.

Return vs Market: ETH underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

ETHIndustryMarket
7 Day0.8%0.02%-0.9%
30 Day-16.8%0.7%-0.4%
90 Day-12.4%2.6%2.3%
1 Year-17.3%-20.7%5.6%3.1%16.3%12.8%
3 Year-48.7%-56.5%2.8%-5.8%15.8%5.7%
5 Year-31.8%-44.6%25.2%8.1%19.7%3.3%

Price Volatility Vs. Market

How volatile is Ethan Allen Interiors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ethan Allen Interiors undervalued compared to its fair value and its price relative to the market?

30.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ETH (€13.4) is trading below our estimate of fair value (€19.36)

Significantly Below Fair Value: ETH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ETH is good value based on its PE Ratio (15.1x) compared to the Consumer Durables industry average (17.6x).

PE vs Market: ETH is good value based on its PE Ratio (15.1x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: ETH is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: ETH is good value based on its PB Ratio (1x) compared to the DE Consumer Durables industry average (1.7x).


Next Steps

Future Growth

How is Ethan Allen Interiors forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETH's forecast earnings growth (5.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: ETH's earnings (5.4% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: ETH's earnings are forecast to grow, but not significantly.

Revenue vs Market: ETH's revenue (1.1% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: ETH's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ETH's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has Ethan Allen Interiors performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETH has a large one-off loss of $13.9M impacting its December 31 2019 financial results.

Growing Profit Margin: ETH's current net profit margins (3.6%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: ETH's earnings have declined by -8.6% per year over the past 5 years.

Accelerating Growth: ETH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ETH had negative earnings growth (-26.4%) over the past year, making it difficult to compare to the Consumer Durables industry average (-15.9%).


Return on Equity

High ROE: ETH's Return on Equity (7.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ethan Allen Interiors's financial position?


Financial Position Analysis

Short Term Liabilities: ETH's short term assets ($199.4M) exceed its short term liabilities ($137.4M).

Long Term Liabilities: ETH's short term assets ($199.4M) exceed its long term liabilities ($121.7M).


Debt to Equity History and Analysis

Debt Level: ETH is debt free.

Reducing Debt: ETH has no debt compared to 5 years ago when its debt to equity ratio was 34.5%.

Debt Coverage: ETH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ETH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ETH has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ETH's debt is covered by short term assets.


Next Steps

Dividend

What is Ethan Allen Interiors's current dividend yield, its reliability and sustainability?

5.75%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Ethan Allen Interiors before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.7%marketbottom25%1.3%markettop25%3.6%industryaverage3.0%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: ETH's dividend (5.75%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: ETH's dividend (5.75%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: ETH's dividend payments have been volatile in the past 10 years.

Growing Dividend: ETH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.7%), ETH's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ETH's dividends in 3 years are forecast to be covered by earnings (73.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

M. Kathwari (75yo)

31.4yrs

Tenure

US$2,772,990

Compensation

Mr. M. Farooq Kathwari serves as the Chairman and Chief Executive Officer of Ethan Allen Interiors Inc. since September 1988 and its President since 1985. Mr. Kathwari has been the Chief Executive Officer  ...


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD2.77M) is above average for companies of similar size in the German market ($USD802.74K).

Compensation vs Earnings: M.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
M. Kathwari
Chairman of the Board31.4yrsUS$2.77m7.4% $25.8m
Corey Whitely
Executive VP of Administration5.6yrsUS$675.51k0.064% $223.3k
Eric Koster
VP, General Counsel & Secretary6.8yrsUS$344.88kno data
Daniel Grow
Senior Vice President of Business Development5yrsUS$478.37k0.019% $67.2k
Clifford Thorn
Vice President of Upholstery Manufacturing18.8yrsUS$337.19k0.0093% $32.3k
Matthew McNulty
Vice President0.8yrsno datano data
Rodney Hutton
Chief Marketing Officer0yrsno datano data
Kathy Bliss
Senior Vice President of Retail Division2.3yrsUS$311.20kno data

5.6yrs

Average Tenure

69.5yo

Average Age

Experienced Management: ETH's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. Kathwari
Chairman of the Board31.4yrsUS$2.77m7.4% $25.8m
John Dooner
Independent Director9.1yrsUS$82.01k0.043% $149.3k
Tara Stacom
Independent Director4.4yrsUS$76.61k0.024% $84.7k
James Carlson
Independent Director6.7yrsUS$83.81k0.070% $243.2k
James Schmotter
Independent Lead Director0yrsUS$83.81k0.010% $36.3k
Mary Garrett
Independent Director4.1yrsUS$76.61k0.00077% $2.7k
Domenick Esposito
Independent Director4.6yrsUS$91.01k0.014% $49.5k

5.6yrs

Average Tenure

71yo

Average Age

Experienced Board: ETH's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ethan Allen Interiors Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ethan Allen Interiors Inc.
  • Ticker: ETH
  • Exchange: DB
  • Founded: 1932
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$378.829m
  • Listing Market Cap: US$348.750m
  • Shares outstanding: 25.93m
  • Website: https://www.ethanallen.com

Number of Employees


Location

  • Ethan Allen Interiors Inc.
  • 25 Lake Avenue Extension
  • Danbury
  • Connecticut
  • 6811
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETHNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 1993
ETHDB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 1993

Biography

Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in North America, Asia, the Middle East, and Europe. The company operates through two segments, Wholesale and Retail. Its products include case goods items, such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents; upholstery items comprising sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather; and home accents and other items consisting of window treatments and drapery hardware, wall decors, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings, and home and garden furnishings. The company markets and sells its products under the Ethan Allen brand name through home furnishing retail networks and independent retailers, as well as through ethanallen.com Website. As of July 31, 2019, it operated a network of approximately 300 design centers. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 20:42
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.