NYSE:ETH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States and internationally. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ETH's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.0%

ETH

-1.8%

US Consumer Durables

-2.4%

US Market


1 Year Return

87.1%

ETH

37.1%

US Consumer Durables

31.2%

US Market

Return vs Industry: ETH exceeded the US Consumer Durables industry which returned 37.1% over the past year.

Return vs Market: ETH exceeded the US Market which returned 31.2% over the past year.


Shareholder returns

ETHIndustryMarket
7 Day-1.0%-1.8%-2.4%
30 Day2.3%-0.8%-3.0%
90 Day30.2%10.1%3.2%
1 Year96.5%87.1%38.9%37.1%34.1%31.2%
3 Year24.1%3.8%46.3%40.3%48.1%38.6%
5 Year6.5%-15.9%92.4%78.4%116.5%92.3%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ETH ($24.86) is trading below our estimate of fair value ($96.4)

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


Price To Earnings Ratio

PE vs Industry: ETH is poor value based on its PE Ratio (45.2x) compared to the US Consumer Durables industry average (13.2x).

PE vs Market: ETH is poor value based on its PE Ratio (45.2x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: ETH is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ETH's PB Ratio (1.8x) is in line with the US Consumer Durables industry average.


Next Steps

Future Growth

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

55.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETH's forecast earnings growth (55.6% per year) is above the savings rate (2%).

Earnings vs Market: ETH's earnings (55.6% per year) are forecast to grow faster than the US market (19.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ETH's revenue (11.3% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: ETH's revenue (11.3% 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 ETH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETH has a large one-off loss of $10.3M impacting its December 31 2020 financial results.

Growing Profit Margin: ETH's current net profit margins (2.4%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: ETH's earnings have declined by 24.3% 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 (-45.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (34.4%).


Return on Equity

High ROE: ETH's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Ethan Allen Interiors's financial position?


Financial Position Analysis

Short Term Liabilities: ETH's short term assets ($245.9M) exceed its short term liabilities ($187.5M).

Long Term Liabilities: ETH's short term assets ($245.9M) exceed its long term liabilities ($101.2M).


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 15.2%.

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


Next Steps

Dividend

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

4.02%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ETH's dividend (4.02%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: ETH's dividend (4.02%) is in the top 25% of dividend payers in the US market (3.72%)


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: With its high payout ratio (159.8%), ETH's dividend payments are not 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?

6.7yrs

Average management tenure


CEO

M. Kathwari (76 yo)

32.5yrs

Tenure

US$1,816,107

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 ($USD1.82M) is about average for companies of similar size in the US market ($USD2.24M).

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


Leadership Team

NamePositionTenureCompensationOwnership
M. Kathwari
Chairman of the Board32.5yrsUS$1.82m8.18%
$ 53.4m
Corey Whitely
Executive VP of Administration6.67yrsUS$577.30k0.066%
$ 431.0k
Eric Koster
VP, General Counsel & Secretary7.92yrsUS$307.45k0%
$ 0
Rodney Hutton
Chief Marketing Officer1.17yrsUS$249.38kno data
Daniel Grow
Senior Vice President of Business Development6.08yrsUS$385.55k0.0091%
$ 59.3k
Kathy Bliss
Senior Vice President of Retail Division3.42yrsUS$311.20kno data
Clifford Thorn
Vice President of Upholstery Manufacturing19.83yrsUS$337.19k0.0095%
$ 62.3k

6.7yrs

Average Tenure

68yo

Average Age

Experienced Management: ETH's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. Kathwari
Chairman of the Board32.5yrsUS$1.82m8.18%
$ 53.4m
John Dooner
Independent Director10.17yrsUS$78.30k0.044%
$ 288.1k
Tara Stacom
Independent Director5.5yrsUS$71.30k0.025%
$ 163.6k
James Carlson
Independent Director7.75yrsUS$78.30k0.072%
$ 469.5k
James Schmotter
Director10.92yrsUS$78.30k0.011%
$ 70.1k
Mary Garrett
Independent Director5.17yrsUS$71.30k0.00079%
$ 5.2k
Domenick Esposito
Lead Independent Directorno dataUS$85.30k0.015%
$ 95.5k

9.0yrs

Average Tenure

72yo

Average Age

Experienced Board: ETH's board of directors are considered experienced (9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ETH insiders have only sold shares 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 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$653.493m
  • Shares outstanding: 25.17m
  • 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
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 the United States and internationally. The company operates in two segments, Wholesal...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 23:48
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.