ETHAN ALLEN INTERIORS INC (ETD) Stock Fundamental Analysis
NYSE:ETD - New York Stock Exchange, Inc. - US2976021046 - Common Stock - Currency: USD
Overall ETD gets a fundamental rating of 6 out of 10. We evaluated ETD against 64 industry peers in the Household Durables industry. ETD gets an excellent profitability rating and is at the same time showing great financial health properties. ETD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ETD was profitable.
In the past year ETD had a positive cash flow from operations.
In the past 5 years ETD has always been profitable.
Each year in the past 5 years ETD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ETD (8.35%) is better than 60.94% of its industry peers.
With a Return On Equity value of 12.78%, ETD perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.33%, ETD is in line with its industry, outperforming 57.81% 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 12.31%.
The last Return On Invested Capital (9.33%) for ETD is well below the 3 year average (15.63%), which needs to be investigated, but indicates that ETD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.35% | ||
| ROE | 12.78% | ||
| ROIC | 9.33% |
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
ETD's Profit Margin of 9.76% is fine compared to the rest of the industry. ETD outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of ETD has grown nicely.
The Operating Margin of ETD (11.58%) is better than 68.75% of its industry peers.
In the last couple of years the Operating Margin of ETD has grown nicely.
The Gross Margin of ETD (60.80%) is better than 98.44% of its industry peers.
ETD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.58% | ||
| PM (TTM) | 9.76% | ||
| GM | 60.8% |
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.
ETD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ETD has less shares outstanding
The debt/assets ratio for ETD is higher compared to a year ago.
2.2 Solvency
ETD has an Altman-Z score of 4.54. This indicates that ETD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ETD (4.54) is better than 76.56% of its industry peers.
ETD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.54 |
ROIC/WACC1.03
WACC9.06%
2.3 Liquidity
A Current Ratio of 2.11 indicates that ETD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.11, ETD is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that ETD should not have too much problems paying its short term obligations.
ETD's Quick ratio of 1.16 is fine compared to the rest of the industry. ETD outperforms 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for ETD have decreased strongly by -24.68% in the last year.
The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
ETD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.10%.
ETD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.85% yearly.
EPS 1Y (TTM)-24.68%
EPS 3Y1.52%
EPS 5Y9.71%
EPS Q2Q%-11.94%
Revenue 1Y (TTM)-11.1%
Revenue growth 3Y-1.93%
Revenue growth 5Y-2.85%
Sales Q2Q%-5.99%
3.2 Future
ETD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.77% yearly.
Based on estimates for the next years, ETD will show a small growth in Revenue. The Revenue will grow by 0.46% on average per year.
EPS Next Y-3.89%
EPS Next 2Y1.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.51%
Revenue Next 2Y0.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.60 indicates a reasonable valuation of ETD.
ETD's Price/Earnings ratio is in line with the industry average.
ETD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.33.
A Price/Forward Earnings ratio of 10.61 indicates a reasonable valuation of ETD.
ETD's Price/Forward Earnings ratio is in line with the industry average.
ETD is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 10.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ETD indicates a rather cheap valuation: ETD is cheaper than 84.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ETD is valued a bit cheaper than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.69 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
The excellent profitability rating of ETD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y1.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.88%, ETD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.73, ETD pays a better dividend. On top of this ETD pays more dividend than 92.19% of the companies listed in the same industry.
ETD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
5.2 History
The dividend of ETD has a limited annual growth rate of 2.28%.
ETD has been paying a dividend for at least 10 years, so it has 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
80.57% of the earnings are spent on dividend by ETD. 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.
DP80.57%
EPS Next 2Y1.77%
EPS Next 3YN/A
27.26
+0.89 (+3.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners88.16%
Inst Owner ChangeN/A
Ins Owners9.93%
Ins Owner Change-4.6%
Market Cap693.22M
Analysts48
Price Target32.64 (19.74%)
Short Float %13.37%
Short Ratio12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
Yearly Dividend1.98
Dividend Growth(5Y)2.28%
DP80.57%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.85%
Min EPS beat(2)-4.24%
Max EPS beat(2)2.55%
EPS beat(4)2
Avg EPS beat(4)-1.46%
Min EPS beat(4)-25.74%
Max EPS beat(4)21.59%
EPS beat(8)4
Avg EPS beat(8)-1.12%
EPS beat(12)8
Avg EPS beat(12)10.83%
EPS beat(16)10
Avg EPS beat(16)10.99%
Revenue beat(2)0
Avg Revenue beat(2)-3.06%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-3.05%
Revenue beat(4)1
Avg Revenue beat(4)-3.83%
Min Revenue beat(4)-13.78%
Max Revenue beat(4)4.58%
Revenue beat(8)1
Avg Revenue beat(8)-4.08%
Revenue beat(12)3
Avg Revenue beat(12)-1.48%
Revenue beat(16)4
Avg Revenue beat(16)-0.72%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.98%
EPS NY rev (1m)0%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 10.61 | ||
| P/S | 1.11 | ||
| P/FCF | 10.69 | ||
| P/OCF | 9.05 | ||
| P/B | 1.45 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)2.35
EY8.62%
EPS(NY)2.57
Fwd EY9.42%
FCF(TTM)2.55
FCFY9.36%
OCF(TTM)3.01
OCFY11.05%
SpS24.64
BVpS18.83
TBVpS17.05
PEG (NY)N/A
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.35% | ||
| ROE | 12.78% | ||
| ROCE | 12.46% | ||
| ROIC | 9.33% | ||
| ROICexc | 12.25% | ||
| ROICexgc | 13.64% | ||
| OM | 11.58% | ||
| PM (TTM) | 9.76% | ||
| GM | 60.8% | ||
| FCFM | 10.35% |
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-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 74.26% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.67% | ||
| Profit Quality | 106.01% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 4.54 |
F-Score5
WACC9.06%
ROIC/WACC1.03
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)-24.68%
EPS 3Y1.52%
EPS 5Y9.71%
EPS Q2Q%-11.94%
EPS Next Y-3.89%
EPS Next 2Y1.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-11.1%
Revenue growth 3Y-1.93%
Revenue growth 5Y-2.85%
Sales Q2Q%-5.99%
Revenue Next Year-1.51%
Revenue Next 2Y0.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-27.6%
EBIT growth 3Y-1.01%
EBIT growth 5Y7.48%
EBIT Next Year20.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-6.62%
FCF growth 3Y-15.71%
FCF growth 5Y8.88%
OCF growth 1Y-12.55%
OCF growth 3Y-14.85%
OCF growth 5Y7.74%