ETHAN ALLEN INTERIORS INC (ETD) Stock Fundamental Analysis
NYSE:ETD - New York Stock Exchange, Inc. - US2976021046 - Common Stock
ETD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. ETD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ETD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ETD had positive earnings in the past year.
ETD had a positive operating cash flow in the past year.
In the past 5 years ETD has always been profitable.
ETD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.62%, ETD is doing good in the industry, outperforming 64.62% of the companies in the same industry.
With a Return On Equity value of 13.40%, ETD perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.79%, ETD is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
ETD had an Average Return On Invested Capital over the past 3 years of 15.63%. This is above the industry average of 11.99%.
The 3 year average ROIC (15.63%) for ETD is well above the current ROIC(9.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 13.4% | ||
| ROIC | 9.79% |
ROA(3y)12.37%
ROA(5y)9.46%
ROE(3y)20.34%
ROE(5y)16.16%
ROIC(3y)15.63%
ROIC(5y)12.52%
1.3 Margins
With a decent Profit Margin value of 9.99%, ETD is doing good in the industry, outperforming 75.38% of the companies in the same industry.
In the last couple of years the Profit Margin of ETD has grown nicely.
ETD has a Operating Margin of 11.92%. This is in the better half of the industry: ETD outperforms 69.23% of its industry peers.
ETD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.75%, ETD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ETD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.92% | ||
| PM (TTM) | 9.99% | ||
| GM | 60.75% |
OM growth 3Y0.94%
OM growth 5Y10.63%
PM growth 3Y4.08%
PM growth 5Y23.47%
GM growth 3Y1.91%
GM growth 5Y1.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ETD is creating some value.
The number of shares outstanding for ETD has been increased compared to 1 year ago.
The number of shares outstanding for ETD has been reduced compared to 5 years ago.
ETD has a worse debt/assets ratio than last year.
2.2 Solvency
ETD has an Altman-Z score of 4.61. This indicates that ETD is financially healthy and has little risk of bankruptcy at the moment.
ETD has a Altman-Z score of 4.61. This is in the better half of the industry: ETD outperforms 70.77% of its industry peers.
There is no outstanding debt for ETD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.61 |
ROIC/WACC1.06
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.99 indicates that ETD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.99, ETD is doing worse than 60.00% of the companies in the same industry.
ETD has a Quick Ratio of 1.08. This is a normal value and indicates that ETD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ETD (1.08) is comparable to the rest of the industry.
ETD does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for ETD have decreased strongly by -31.55% in the last year.
Measured over the past years, ETD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.71% on average per year.
ETD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.05%.
Measured over the past years, ETD shows a decrease in Revenue. The Revenue has been decreasing by -2.85% on average per year.
EPS 1Y (TTM)-31.55%
EPS 3Y1.52%
EPS 5Y9.71%
EPS Q2Q%-7.94%
Revenue 1Y (TTM)-14.05%
Revenue growth 3Y-1.93%
Revenue growth 5Y-2.85%
Sales Q2Q%-5.83%
3.2 Future
The Earnings Per Share is expected to grow by 1.41% on average over the next years.
The Revenue is expected to grow by 0.29% on average over the next years.
EPS Next Y-6.74%
EPS Next 2Y1.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.83%
Revenue Next 2Y0.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.72, the valuation of ETD can be described as very reasonable.
ETD's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ETD to the average of the S&P500 Index (28.29), we can say ETD is valued rather cheaply.
ETD is valuated reasonably with a Price/Forward Earnings ratio of 11.17.
ETD's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.44. ETD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
92.31% of the companies in the same industry are more expensive than ETD, based on the Enterprise Value to EBITDA ratio.
86.15% of the companies in the same industry are more expensive than ETD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.48 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
The excellent profitability rating of ETD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y1.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.43%, ETD is a good candidate for dividend investing.
ETD's Dividend Yield is rather good when compared to the industry average which is at 2.90. ETD pays more dividend than 92.31% of the companies in the same industry.
ETD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
The dividend of ETD has a limited annual growth rate of 2.28%.
ETD has paid a dividend for at least 10 years, which is a reliable track record.
ETD has decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.28%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ETD pays out 76.30% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ETD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP76.3%
EPS Next 2Y1.41%
EPS Next 3YN/A
ETHAN ALLEN INTERIORS INC
NYSE:ETD (1/22/2025, 2:31:47 PM)
28.48
-0.42 (-1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.93%
Inst Owner ChangeN/A
Ins Owners10.13%
Ins Owner Change-3.19%
Market Cap724.25M
Analysts77.14
Price Target32.64 (14.61%)
Short Float %10.94%
Short Ratio12.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
Yearly Dividend1.98
Dividend Growth(5Y)2.28%
DP76.3%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.07%
Min EPS beat(2)2.55%
Max EPS beat(2)21.59%
EPS beat(4)2
Avg EPS beat(4)-3.58%
Min EPS beat(4)-25.74%
Max EPS beat(4)21.59%
EPS beat(8)5
Avg EPS beat(8)2.3%
EPS beat(12)9
Avg EPS beat(12)13.23%
EPS beat(16)10
Avg EPS beat(16)11.24%
Revenue beat(2)1
Avg Revenue beat(2)0.75%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)4.58%
Revenue beat(4)1
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-13.78%
Max Revenue beat(4)4.58%
Revenue beat(8)1
Avg Revenue beat(8)-4.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)4
Avg Revenue beat(16)-0.59%
PT rev (1m)0%
PT rev (3m)6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 11.17 | ||
| P/S | 1.14 | ||
| P/FCF | 10.48 | ||
| P/OCF | 9.22 | ||
| P/B | 1.53 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 5.69 |
EPS(TTM)2.43
EY8.53%
EPS(NY)2.55
Fwd EY8.95%
FCF(TTM)2.72
FCFY9.54%
OCF(TTM)3.09
OCFY10.85%
SpS25.04
BVpS18.67
TBVpS16.89
PEG (NY)N/A
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 13.4% | ||
| ROCE | 13.07% | ||
| ROIC | 9.79% | ||
| ROICexc | 12.78% | ||
| ROICexgc | 14.22% | ||
| OM | 11.92% | ||
| PM (TTM) | 9.99% | ||
| GM | 60.75% | ||
| FCFM | 10.85% |
ROA(3y)12.37%
ROA(5y)9.46%
ROE(3y)20.34%
ROE(5y)16.16%
ROIC(3y)15.63%
ROIC(5y)12.52%
ROICexc(3y)21.36%
ROICexc(5y)16.83%
ROICexgc(3y)24.06%
ROICexgc(5y)19.02%
ROCE(3y)20.88%
ROCE(5y)16.73%
ROICexcg growth 3Y-7.95%
ROICexcg growth 5Y3.68%
ROICexc growth 3Y-7.18%
ROICexc growth 5Y4.1%
OM growth 3Y0.94%
OM growth 5Y10.63%
PM growth 3Y4.08%
PM growth 5Y23.47%
GM growth 3Y1.91%
GM growth 5Y1.99%
F-Score4
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 59.81% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.64% | ||
| Profit Quality | 108.62% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 4.61 |
F-Score4
WACC9.25%
ROIC/WACC1.06
Cap/Depr(3y)77.62%
Cap/Depr(5y)79.89%
Cap/Sales(3y)1.63%
Cap/Sales(5y)1.86%
Profit Quality(3y)82.27%
Profit Quality(5y)171.77%
High Growth Momentum
Growth
EPS 1Y (TTM)-31.55%
EPS 3Y1.52%
EPS 5Y9.71%
EPS Q2Q%-7.94%
EPS Next Y-6.74%
EPS Next 2Y1.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.05%
Revenue growth 3Y-1.93%
Revenue growth 5Y-2.85%
Sales Q2Q%-5.83%
Revenue Next Year-1.83%
Revenue Next 2Y0.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-34.41%
EBIT growth 3Y-1.01%
EBIT growth 5Y7.48%
EBIT Next Year18.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-8.81%
FCF growth 3Y-15.71%
FCF growth 5Y8.88%
OCF growth 1Y-13.45%
OCF growth 3Y-14.85%
OCF growth 5Y7.74%