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
|Historical stock prices|
|Current Share Price||US$21.14|
|52 Week High||US$28.04|
|52 Week Low||US$19.60|
|1 Month Change||-11.06%|
|3 Month Change||2.92%|
|1 Year Change||-11.55%|
|3 Year Change||14.09%|
|5 Year Change||-32.68%|
|Change since IPO||217.10%|
Recent News & Updates
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.
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...
|ETD||US Consumer Durables||US Market|
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.
|ETD Average Weekly Movement||5.0%|
|Consumer Durables Industry Average Movement||6.2%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.8%|
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
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
|ETD fundamental statistics|
Is ETD overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ETD income statement (TTM)|
|Cost of Revenue||US$333.06m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||4.07|
|Net Profit Margin||12.63%|
How did ETD perform over the long term?See historical performance and comparison
8.4%Current Dividend Yield
Is ETD undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is ETD's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ETD's PE Ratio compare to its peers?
|ETD PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
BSET Bassett Furniture Industries
HOFT Hooker Furnishings
ETD Ethan Allen Interiors
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.
|Current PE Ratio||5.2x|
|Fair PE Ratio||5.2x|
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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How is Ethan Allen Interiors forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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
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How has Ethan Allen Interiors performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Ethan Allen Interiors's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
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.
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What is Ethan Allen Interiors's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Ethan Allen Interiors Dividend Yield vs Market|
|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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
M. Kathwari (78 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||n/a||n/a|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||US$4m||US$1m|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||n/a||n/a|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||US$2m||US$863k|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||n/a||n/a|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||US$3m||US$1m|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||n/a||n/a|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||US$3m||US$1m|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||n/a||n/a|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||US$3m||US$1m|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||n/a||n/a|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||US$4m||US$1m|
Compensation vs Market: M.'s total compensation ($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.
Experienced Management: ETD's management team is considered experienced (2.7 years average tenure).
Experienced Board: ETD's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.
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
|01 Nov 21||SellUS$430,218||James Carlson||Individual||18,084||US$23.79|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Ethan Allen Interiors Inc.'s employee growth, exchange listings and data sources
- 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
- Ethan Allen Interiors Inc.
- 25 Lake Avenue Extension
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ETD||NYSE (New York Stock Exchange)||Yes||Class A Common Stock||US||USD||Mar 1993|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/30 00:00|
|End of Day Share Price||2022/09/30 00:00|
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.