NYSE:ETH

Stock Analysis Report

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

Fundamentals

Flawless balance sheet established dividend payer.


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


Market Performance


7 Day Return

3.2%

ETH

2.7%

US Consumer Durables

0.5%

US Market


1 Year Return

-3.9%

ETH

45.4%

US Consumer Durables

6.8%

US Market

Return vs Industry: ETH underperformed the US Consumer Durables industry which returned 45.4% over the past year.

Return vs Market: ETH underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

ETHIndustryMarket
7 Day3.2%2.7%0.5%
30 Day5.2%4.3%-0.8%
90 Day-6.5%8.5%-0.9%
1 Year5.4%-3.9%47.4%45.4%9.2%6.8%
3 Year-26.9%-37.6%53.8%49.0%45.6%36.2%
5 Year-14.0%-29.5%43.2%34.1%63.2%45.4%

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

Valuation

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

20.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ETH ($19.27) is trading above our estimate of fair value ($12.92)

Significantly Below Fair Value: ETH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ETH is poor value based on its PE Ratio (20x) compared to the Consumer Durables industry average (13.8x).

PE vs Market: ETH is poor value based on its PE Ratio (20x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ETH is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ETH is good value based on its PB Ratio (1.4x) compared to the US Consumer Durables industry average (1.6x).


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?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETH's forecast earnings growth (14.5% per year) is above the savings rate (2.7%).

Earnings vs Market: ETH's earnings (14.5% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: ETH's revenue (2.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ETH's revenue (2.1% 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 (12.5%).


Next Steps

Past Performance

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

-6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ETH's earnings have declined by -6.1% 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 (-29.3%) over the past year, making it difficult to compare to the Consumer Durables industry average (13.5%).


Return on Equity

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


Return on Assets

ROA vs Industry: ETH's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: ETH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ethan Allen Interiors's financial position?


Financial Position Analysis

Short Term Liabilities: ETH's short term assets ($216.3M) exceeds its short term liabilities ($122.8M)

Long Term Liabilities: ETH's short term assets (216.3M) exceeds its long term liabilities (23.6M)


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 35.6%.

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?

9.55%

Current Dividend Yield


Dividend Yield vs Market

company9.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ETH's dividend (9.55%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ETH's dividend (9.55%) is in the top 25% of dividend payers in the US market (3.73%)

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 (78.9%), 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 (52% payout ratio).


Next Steps

Management

What is the CEO of Ethan Allen Interiors's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

M. Kathwari (75yo)

31.1yrs

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 ($USD2.77M) is above average for companies of similar size in the US market ($USD1.80M).

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


Management Age and Tenure

5.3yrs

Average Tenure

69.5yo

Average Age

Experienced Management: ETH's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

71yo

Average Age

Experienced Board: ETH's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$38,76019 Nov 18
James Carlson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$19.38
BuyUS$195,00007 Nov 18
M. Kathwari
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board
Shares10,000
Max PriceUS$19.50

Ownership Breakdown


Management Team

  • M. Kathwari (75yo)

    Chairman of the Board

    • Tenure: 31.1yrs
    • Compensation: US$2.77m
  • Dan Grow (73yo)

    Senior Vice President of Business Development

    • Tenure: 4.7yrs
    • Compensation: US$478.37k
  • Corey Whitely (59yo)

    Executive VP of Administration

    • Tenure: 5.3yrs
    • Compensation: US$675.51k
  • Clifford Thorn (67yo)

    Vice President of Upholstery Manufacturing

    • Tenure: 18.4yrs
    • Compensation: US$337.19k
  • Matt McNulty

    Vice President

    • Tenure: 0.5yrs
  • Kathy Bliss (55yo)

    Senior Vice President of Retail Division

    • Tenure: 2yrs
    • Compensation: US$311.20k
  • Eric Koster (72yo)

    VP, General Counsel & Secretary

    • Tenure: 6.5yrs
    • Compensation: US$344.88k

Board Members

  • John Dooner (71yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$82.01k
  • M. Kathwari (75yo)

    Chairman of the Board

    • Tenure: 31.1yrs
    • Compensation: US$2.77m
  • Tara Stacom (61yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$76.61k
  • James Carlson (64yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$83.81k
  • Jim Schmotter (72yo)

    Independent Lead Director

    • Tenure: 0yrs
    • Compensation: US$83.81k
  • Mary Garrett (60yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$76.61k
  • Domenick Esposito (72yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$91.01k

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: NYSE
  • Founded: 1932
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$512.330m
  • Shares outstanding: 26.59m
  • 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 se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:35
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.