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ETD

Ethan Allen InteriorsNYSE:ETD Stock Report

Market Cap

US$600.9m

7D

-1.0%

1Y

40.7%

Updated

26 Oct, 2021

Data

Company Financials +
ETD fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends4/6

ETD Overview

Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States, Mexico, Honduras, and Canada.

Ethan Allen Interiors Competitors

Tempur Sealy International

NYSE:TPX

US$9.3b

Leggett & Platt

NYSE:LEG

US$6.3b

La-Z-Boy

NYSE:LZB

US$1.5b

Purple Innovation

NasdaqGS:PRPL

US$1.3b

Price History & Performance

Summary of all time highs, changes and price drops for Ethan Allen Interiors
Historical stock prices
Current Share PriceUS$23.79
52 Week HighUS$15.28
52 Week LowUS$32.15
Beta1.1
1 Month Change-3.80%
3 Month Change-1.04%
1 Year Change40.69%
3 Year Change19.37%
5 Year Change-20.83%
Change since IPO256.85%

Recent News & Updates

Aug 08

Evaluating Ethan Allen

Ethan Allen Interiors has seen its stock fall back some 25% from recent highs. This is despite the fact the company just raised guidance, recently issued a special cash dividend and has a cheap stock with 4% yield to boot. A full investment analysis follows in the paragraphs below.

Shareholder Returns

ETDUS Consumer DurablesUS Market
7D-1.0%1.5%1.9%
1Y40.7%34.5%33.4%

Return vs Industry: ETD exceeded the US Consumer Durables industry which returned 34.5% over the past year.

Return vs Market: ETD exceeded the US Market which returned 33.4% over the past year.

Price Volatility

Is ETD's price volatile compared to industry and market?
ETD volatility
ETD Beta1.1
Industry Beta1.47
Market Beta1

Stable Share Price: ETD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ETD's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19324,188M. Kathwarihttps://www.ethanallen.com

Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States, Mexico, Honduras, and Canada. The company operates in 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 accent 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.

Ethan Allen Interiors Fundamentals Summary

How do Ethan Allen Interiors's earnings and revenue compare to its market cap?
ETD fundamental statistics
Market CapUS$600.94m
Earnings (TTM)US$60.01m
Revenue (TTM)US$685.17m

10.0x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETD income statement (TTM)
RevenueUS$685.17m
Cost of RevenueUS$291.42m
Gross ProfitUS$393.75m
ExpensesUS$333.74m
EarningsUS$60.01m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)2.38
Gross Margin57.47%
Net Profit Margin8.76%
Debt/Equity Ratio0%

How did ETD perform over the long term?

See historical performance and comparison

Dividends

7.4%

Current Dividend Yield

40%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ETD ($23.79) is trading below our estimate of fair value ($224.97)

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


Price To Earnings Ratio

PE vs Industry: ETD is good value based on its PE Ratio (10x) compared to the US Consumer Durables industry average (10.8x).

PE vs Market: ETD is good value based on its PE Ratio (10x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ETD is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: ETD is good value based on its PB Ratio (1.7x) compared to the US Consumer Durables industry average (1.9x).


Future Growth

How is Ethan Allen Interiors forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETD's forecast earnings growth (6.5% per year) is above the savings rate (2%).

Earnings vs Market: ETD's earnings (6.5% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: ETD's revenue (4.5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ETD's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ETD's Return on Equity is forecast to be high in 3 years time


Past Performance

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

-16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETD has high quality earnings.

Growing Profit Margin: ETD's current net profit margins (8.8%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: ETD's earnings have declined by 16.1% per year over the past 5 years.

Accelerating Growth: ETD's earnings growth over the past year (574.2%) exceeds its 5-year average (-16.1% per year).

Earnings vs Industry: ETD earnings growth over the past year (574.2%) exceeded the Consumer Durables industry 78.8%.


Return on Equity

High ROE: ETD's Return on Equity (17.1%) is considered low.


Financial Health

How is Ethan Allen Interiors's financial position?


Financial Position Analysis

Short Term Liabilities: ETD's short term assets ($295.3M) exceed its short term liabilities ($223.9M).

Long Term Liabilities: ETD's short term assets ($295.3M) exceed its long term liabilities ($107.9M).


Debt to Equity History and Analysis

Debt Level: ETD is debt free.

Reducing Debt: ETD has no debt compared to 5 years ago when its debt to equity ratio was 10.7%.

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

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


Balance Sheet


Dividend

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

7.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ETD's dividend (7.36%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: ETD's dividend (7.36%) is in the top 25% of dividend payers in the US market (3.48%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.4%), ETD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

M. Kathwari (77 yo)

33.08yrs

Tenure

US$3,780,814

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 ($USD3.78M) is above average for companies of similar size in the US market ($USD2.25M).

Compensation vs Earnings: M.'s compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ETD's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: ETD's board of directors are considered experienced (7.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Ethan Allen Interiors Inc.
  • Ticker: ETD
  • Exchange: NYSE
  • Founded: 1932
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$600.936m
  • Shares outstanding: 25.26m
  • Website: https://www.ethanallen.com

Number of Employees


Location

  • Ethan Allen Interiors Inc.
  • 25 Lake Avenue Extension
  • Danbury
  • Connecticut
  • 06811-5286
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:30
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.