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ETD

Ethan Allen Interiors NYSE:ETD Stock Report

Last Price

US$21.14

Market Cap

US$535.8m

7D

-2.9%

1Y

-11.5%

Updated

30 Sep, 2022

Data

Company Financials +
ETD fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends5/6

ETD Stock 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

Price History & Performance

Summary of all time highs, changes and price drops for Ethan Allen Interiors
Historical stock prices
Current Share PriceUS$21.14
52 Week HighUS$28.04
52 Week LowUS$19.60
Beta1.07
1 Month Change-11.06%
3 Month Change2.92%
1 Year Change-11.55%
3 Year Change14.09%
5 Year Change-32.68%
Change since IPO217.10%

Recent News & Updates

Sep 13

Ethan Allen: Great Buy At Current Levels

Summary Ethan Allen is a great retail stock that is undervalued and can provide both capital and income appreciation. The company's history and brand are strong moats that provide solid competitive advantages for the business. The company's stock is undervalued based on intrinsic valuation models and peer/historical valuation comparisons. We believe Ethan Allen can continue to perform in less-than-ideal economic scenarios due to the nature of the target demographic and its liquidity position. Thesis Ethan Allen Interiors Inc. (NYSE:ETD) is a retail stock that we believe is vastly undervalued by the market and is a stock that can provide dividend income growth for investors. The company is financially strong with a formidable brand moat. Based on dividend-based valuation model and historical/peer valuation comparisons, the company is undervalued and we believe there is at least a minimum of 60% upside once market conditions normalize. In addition, Ethan Allen's management has proven to be capable of navigating the company through a deep economic shock like the COVID-19 pandemic and should be liquid enough to endure any further economic deterioration. Company Overview Ethan Allen Interiors Inc. is a U.S. interior design furniture company that manufactures and sells various interior design products, such as couches, beds, dining tables, and more. The company has more than 300 locations in the United States and abroad. Ethan Allen is well known for its timeless designs and the ability to customize its furnitures in its design centers. The company's stock has outperformed the S&P 500 index so far this year, returning -7.38% compared to S&P 500's return of -14.39% in the same time frame. ETD Year to Date Price Returns (Daily) data by YCharts Strong Financial Performance Ethan Allen is a widely known interior design brand and has won numerous awards to demonstrate its popularity and trust among consumers. For example, Lifestory Research declared Ethan Allen the "most trusted brand among people shopping furniture for their home" in 2022. Such titles put Ethan Allen well ahead of competitors, such as Williams-Sonoma (WSM), Restoration Hardware (RH), and IKEA. Recent quarter's performance reflects Ethan Allen's strong business moat as the company reported a quarterly sales YoY growth of 28.8% and a EPS YoY growth of 73.2%. Such strong quarterly performance has led management to declare an additional special cash dividend of $0.50 per share in addition to the regular quarterly cash dividend of $0.32 per share. Based on current levels, that translates to a dividend return of 3.3% just in the past quarter alone. We believe Ethan Allen's 90-year brand history and consumer brand awareness serve as a strong moat that can continue to propel the company's financial performance forward. As one can see below, except for pandemic-related years in which stores were shut down, the company's revenue has generally trended upwards in the last 10 years, and Ethan Allen was able to exceed pre-pandemic revenues this year. ETD data by YCharts Valuation We used a couple of valuation methods to determine whether the stock is undervalued or overvalued by the market. Based on either metric, we find that the company is considerably undervalued from an intrinsic valuation standpoint as well as based on historical valuation, and we believe that the current stock price presents an attractive opportunity for investors. Gordon Growth Model Excluding special cash dividends, the company current pays $0.32 per share in quarterly dividends. Annualized, the annual dividend amounts to $1.28 per share, which represents an annualized yield of 5.26%. That is more than 3 times S&P 500's dividend yield of 1.69%. Using half of Ethan Allen's 5 year dividend growth CAGR of 10.52% and a discount rate of 8.26%, the Gordon Growth Model has an intrinsic valuation at $44.76 per share, which represents a 83.8% upside from current levels. Given a low payout ratio of 29.26%, we believe that the dividend growth assumption is conservative and has the potential for higher dividend growth based on the company's performance. Sweet Minute Capital Valuation Historical and Peer Valuation The company is currently valued well below the Sector median valuation multiples (i.e. P/E, PEG, EV/Sales, and etc.) as seen below. On certain metrics like PEG GAAP (TTM) valuation metric, Ethan Allen trades nearly -66.08% below current levels. Seeking Alpha Valuation Metrics What is especially notable is that due to the market uncertainties, the company is trading at historical valuation lows. The company's P/E ratio now hovers at ~6.0x though the company's P/E ratio has ranged well in between ~10.0x to 20.0x in the last 10 years. Using the lower estimate of this range of 10.0x, based on the company's TTM financial performance, we believe the company can well recover back to 10.0x P/E multiple, which presents a ~66% upside from current levels.

Aug 05
We Ran A Stock Scan For Earnings Growth And Ethan Allen Interiors (NYSE:ETD) Passed With Ease

We Ran A Stock Scan For Earnings Growth And Ethan Allen Interiors (NYSE:ETD) Passed With Ease

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

ETDUS Consumer DurablesUS Market
7D-2.9%-3.1%-2.5%
1Y-11.5%-33.6%-23.2%

Return vs Industry: ETD exceeded the US Consumer Durables industry which returned -32.6% over the past year.

Return vs Market: ETD exceeded the US Market which returned -21.5% over the past year.

Price Volatility

Is ETD's price volatile compared to industry and market?
ETD volatility
ETD Average Weekly Movement5.0%
Consumer Durables Industry Average Movement6.2%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

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
19324,239M. 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$535.84m
Earnings (TTM)US$103.28m
Revenue (TTM)US$817.76m

5.2x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETD income statement (TTM)
RevenueUS$817.76m
Cost of RevenueUS$333.06m
Gross ProfitUS$484.71m
Other ExpensesUS$381.43m
EarningsUS$103.28m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.07
Gross Margin59.27%
Net Profit Margin12.63%
Debt/Equity Ratio0%

How did ETD perform over the long term?

See historical performance and comparison

Dividends

8.4%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ETD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ETD?

Other financial metrics that can be useful for relative valuation.

ETD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA3.5x
PEG Ratio-0.2x

Price to Earnings Ratio vs Peers

How does ETD's PE Ratio compare to its peers?

ETD PE Ratio vs Peers
The above table shows the PE ratio for ETD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.1x
LZB La-Z-Boy
5.9x0.2%US$971.3m
BSET Bassett Furniture Industries
5.6x-39.4%US$143.6m
HOFT Hooker Furnishings
46x78.9%US$156.8m
LOVE Lovesac
7x32.6%US$309.5m
ETD Ethan Allen Interiors
5.2x-20.8%US$535.8m

Price-To-Earnings vs Peers: ETD is good value based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (16.1x).


Price to Earnings Ratio vs Industry

How does ETD's PE Ratio compare vs other companies in the US Consumer Durables Industry?

Price-To-Earnings vs Industry: ETD is good value based on its Price-To-Earnings Ratio (5.2x) compared to the US Consumer Durables industry average (6.2x)


Price to Earnings Ratio vs Fair Ratio

What is ETD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ETD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.2x
Fair PE Ratio5.2x

Price-To-Earnings vs Fair Ratio: ETD is good value based on its Price-To-Earnings Ratio (5.2x) compared to the estimated Fair Price-To-Earnings Ratio (5.2x).


Share Price vs Fair Value

What is the Fair Price of ETD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ETD ($21.14) is trading below our estimate of fair value ($30.37)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-20.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETD's earnings are forecast to decline over the next 3 years (-20.8% per year).

Earnings vs Market: ETD's earnings are forecast to decline over the next 3 years (-20.8% per year).

High Growth Earnings: ETD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ETD's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: ETD's revenue is forecast to decline over the next 3 years (-1.6% 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


Discover growth companies

Past Performance

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

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ETD has high quality earnings.

Growing Profit Margin: ETD's current net profit margins (12.6%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: ETD's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: ETD's earnings growth over the past year (72.1%) exceeds its 5-year average (21.1% per year).

Earnings vs Industry: ETD earnings growth over the past year (72.1%) exceeded the Consumer Durables industry 29%.


Return on Equity

High ROE: ETD's Return on Equity (25.4%) is considered high.


Discover strong past performing companies

Financial Health

How is Ethan Allen Interiors's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ETD's short term assets ($346.7M) exceed its short term liabilities ($215.6M).

Long Term Liabilities: ETD's short term assets ($346.7M) exceed its long term liabilities ($96.9M).


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 3.5%.

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


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.42%

Current Dividend Yield

Dividend Yield vs Market

Ethan Allen Interiors Dividend Yield vs Market
How does Ethan Allen Interiors dividend yield compare to the market?
SegmentDividend Yield
Company (Ethan Allen Interiors)8.4%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Consumer Durables)2.9%
Analyst forecast in 3 Years (Ethan Allen Interiors)n/a

Notable Dividend: ETD's dividend (8.42%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: ETD's dividend (8.42%) is in the top 25% of dividend payers in the US market (4.7%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.3%), ETD's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (80.6%), ETD's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure


CEO

M. Kathwari (78 yo)

37.67yrs

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

M. Kathwari's Compensation vs Ethan Allen Interiors Earnings
How has M. Kathwari's remuneration changed compared to Ethan Allen Interiors's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$103m

Mar 31 2022n/an/a

US$90m

Dec 31 2021n/an/a

US$81m

Sep 30 2021n/an/a

US$71m

Jun 30 2021US$4mUS$1m

US$60m

Mar 31 2021n/an/a

US$30m

Dec 31 2020n/an/a

US$14m

Sep 30 2020n/an/a

US$4m

Jun 30 2020US$2mUS$863k

US$9m

Mar 31 2020n/an/a

US$18m

Dec 31 2019n/an/a

US$26m

Sep 30 2019n/an/a

US$31m

Jun 30 2019US$3mUS$1m

US$26m

Mar 31 2019n/an/a

US$40m

Dec 31 2018n/an/a

US$35m

Sep 30 2018n/an/a

US$38m

Jun 30 2018US$3mUS$1m

US$36m

Mar 31 2018n/an/a

US$37m

Dec 31 2017n/an/a

US$36m

Sep 30 2017n/an/a

US$32m

Jun 30 2017US$3mUS$1m

US$36m

Mar 31 2017n/an/a

US$41m

Dec 31 2016n/an/a

US$49m

Sep 30 2016n/an/a

US$55m

Jun 30 2016US$4mUS$1m

US$57m

Compensation vs Market: M.'s total compensation ($USD3.78M) is about average for companies of similar size in the US market ($USD2.91M).

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 (2.7 years average tenure).


Board Members

Experienced Board: ETD's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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

NYSE:ETD Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
01 Nov 21SellUS$430,218James CarlsonIndividual18,084US$23.79

Ownership Breakdown

What is the ownership structure of ETD?
Owner TypeNumber of SharesOwnership Percentage
General Public475,9761.9%
Individual Insiders2,050,0028.1%
Institutions22,810,30490.0%

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


Top Shareholders

Top 25 shareholders own 76.16% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
17.38%
BlackRock, Inc.
4,402,185$93.1m0.31%no data
7.91%
M. Kathwari
2,003,737$42.4m-2.88%no data
7.4%
Dimensional Fund Advisors LP
1,875,255$39.6m3.15%0.01%
6.16%
The Vanguard Group, Inc.
1,559,535$33.0m-7.99%no data
4.01%
LSV Asset Management
1,014,809$21.5m-0.36%0.05%
3.79%
State Street Global Advisors, Inc.
960,963$20.3m1.11%no data
2.67%
Charles Schwab Investment Management, Inc.
677,023$14.3m4.75%no data
2.19%
Hodges Capital Management Inc
553,766$11.7m3.25%1.21%
2.15%
UBS Asset Management
544,636$11.5m-43.1%no data
2.09%
The Ifran Kathwari Foundation, Endowment Arm
530,776$11.2m16.46%no data
1.91%
Victory Capital Management Inc.
484,960$10.3m-0.6%0.01%
1.8%
Columbia Management Investment Advisers, LLC
455,680$9.6m-1.11%no data
1.76%
Geode Capital Management, LLC
446,224$9.4m11.12%no data
1.7%
Northern Trust Global Investments
430,783$9.1m-0.82%no data
1.7%
BNY Mellon Asset Management
429,589$9.1m-3.82%no data
1.65%
First Trust Advisors LP
418,149$8.8m10.68%0.01%
1.65%
Hotchkis and Wiley Capital Management, LLC
417,641$8.8m5.27%0.04%
1.64%
Invesco Capital Management LLC
416,774$8.8m8.15%0.01%
1.34%
Royce & Associates, LP
338,803$7.2m48.88%0.07%
1.07%
Grantham Mayo Van Otterloo & Co. LLC
271,781$5.7m-2.96%0.02%
0.99%
Bridgeway Capital Management, LLC
250,200$5.3m0%0.13%
0.95%
Millennium Management LLC
240,028$5.1m0%0.01%
0.8%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
201,853$4.3m-3.99%no data
0.76%
Cambria Investment Management, L.P.
191,520$4.0m11.11%0.43%
0.71%
North Star Investment Management Corporation
178,818$3.8m19.9%0.37%

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
  • Implied Market Cap: US$535.844m
  • Shares outstanding: 25.35m
  • Website: https://www.ethanallen.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETDNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 1993

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.