ETHAN ALLEN INTERIORS INC (ETD) Stock Fundamental Analysis
USA - NYSE:ETD - US2976021046 - Common Stock
29.45 USD
+0.22 (+0.75%)
29.45 USD
0 (0%)
Taking everything into account, ETD scores 6 out of 10 in our fundamental rating. ETD was compared to 63 industry peers in the Household Durables industry. ETD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ETD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ETD was profitable.
ETD had a positive operating cash flow in the past year.
Each year in the past 5 years ETD has been profitable.
ETD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.83%, ETD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ETD's Return On Equity of 12.07% is in line compared to the rest of the industry. ETD outperforms 58.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.89%, ETD is in line with its industry, outperforming 58.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ETD is in line with the industry average of 10.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 12.07% | ||
| ROIC | 8.89% |
ROA(3y)9.92%
ROA(5y)10.58%
ROE(3y)15.46%
ROE(5y)17.76%
ROIC(3y)11.65%
ROIC(5y)13.57%
1.3 Margins
ETD has a better Profit Margin (9.29%) than 80.95% of its industry peers.
ETD's Profit Margin has improved in the last couple of years.
ETD has a better Operating Margin (11.09%) than 69.84% of its industry peers.
In the last couple of years the Operating Margin of ETD has grown nicely.
ETD's Gross Margin of 60.77% is amongst the best of the industry. ETD outperforms 100.00% of its industry peers.
ETD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.09% | ||
| PM (TTM) | 9.29% | ||
| GM | 60.77% |
OM growth 3Y-14.74%
OM growth 5Y28.53%
PM growth 3Y-12.73%
PM growth 5Y40.95%
GM growth 3Y0.71%
GM growth 5Y1.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ETD is still creating some value.
ETD has about the same amout of shares outstanding than it did 1 year ago.
ETD has more shares outstanding than it did 5 years ago.
ETD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.69 indicates that ETD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.69, ETD is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
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 | 4.69 |
ROIC/WACC0.98
WACC9.06%
2.3 Liquidity
ETD has a Current Ratio of 2.29. This indicates that ETD is financially healthy and has no problem in meeting its short term obligations.
ETD has a Current ratio of 2.29. This is comparable to the rest of the industry: ETD outperforms 47.62% of its industry peers.
A Quick Ratio of 1.34 indicates that ETD should not have too much problems paying its short term obligations.
The Quick ratio of ETD (1.34) is better than 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for ETD have decreased strongly by -17.74% in the last year.
Measured over the past years, ETD shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.01% on average per year.
Looking at the last year, ETD shows a decrease in Revenue. The Revenue has decreased by -4.89% in the last year.
Measured over the past years, ETD shows a small growth in Revenue. The Revenue has been growing by 0.83% on average per year.
EPS 1Y (TTM)-17.74%
EPS 3Y-19.63%
EPS 5Y33.01%
EPS Q2Q%-30%
Revenue 1Y (TTM)-4.89%
Revenue growth 3Y-9.08%
Revenue growth 5Y0.83%
Sales Q2Q%-4.91%
3.2 Future
ETD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.97% yearly.
Based on estimates for the next years, ETD will show a small growth in Revenue. The Revenue will grow by 2.62% on average per year.
EPS Next Y-4.28%
EPS Next 2Y1.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.47%
Revenue Next 2Y2.62%
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
The Price/Earnings ratio is 14.44, which indicates a correct valuation of ETD.
Compared to the rest of the industry, the Price/Earnings ratio of ETD is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.67. ETD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.08, ETD is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETD is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.13. ETD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETD is valued cheaply inside the industry as 92.06% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETD indicates a somewhat cheap valuation: ETD is cheaper than 79.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.49 | ||
| EV/EBITDA | 5.47 |
4.3 Compensation for Growth
ETD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y1.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.45%, ETD is a good candidate for dividend investing.
ETD's Dividend Yield is rather good when compared to the industry average which is at 2.76. ETD pays more dividend than 96.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, ETD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
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
86.58% 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.
DP86.58%
EPS Next 2Y1.97%
EPS Next 3YN/A
29.45
+0.22 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.1%
Inst Owner ChangeN/A
Ins Owners9.73%
Ins Owner Change-1.14%
Market Cap749.21M
Analysts48
Price Target30.6 (3.9%)
Short Float %3.55%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
Yearly Dividend1.98
Dividend Growth(5Y)2.28%
DP86.58%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.77%
Min EPS beat(2)-17.31%
Max EPS beat(2)-4.24%
EPS beat(4)2
Avg EPS beat(4)0.65%
Min EPS beat(4)-17.31%
Max EPS beat(4)21.59%
EPS beat(8)3
Avg EPS beat(8)-4.34%
EPS beat(12)7
Avg EPS beat(12)7.55%
EPS beat(16)10
Avg EPS beat(16)9.92%
Revenue beat(2)0
Avg Revenue beat(2)-3.42%
Min Revenue beat(2)-3.79%
Max Revenue beat(2)-3.05%
Revenue beat(4)1
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)4.58%
Revenue beat(8)1
Avg Revenue beat(8)-4.06%
Revenue beat(12)3
Avg Revenue beat(12)-1.74%
Revenue beat(16)4
Avg Revenue beat(16)-0.89%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.75%
EPS NY rev (3m)-8.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 15.08 | ||
| P/S | 1.2 | ||
| P/FCF | 14.49 | ||
| P/OCF | 11.87 | ||
| P/B | 1.56 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 5.47 |
EPS(TTM)2.04
EY6.93%
EPS(NY)1.95
Fwd EY6.63%
FCF(TTM)2.03
FCFY6.9%
OCF(TTM)2.48
OCFY8.42%
SpS24.49
BVpS18.84
TBVpS17.06
PEG (NY)N/A
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 12.07% | ||
| ROCE | 11.9% | ||
| ROIC | 8.89% | ||
| ROICexc | 12.66% | ||
| ROICexgc | 14.23% | ||
| OM | 11.09% | ||
| PM (TTM) | 9.29% | ||
| GM | 60.77% | ||
| FCFM | 8.3% |
ROA(3y)9.92%
ROA(5y)10.58%
ROE(3y)15.46%
ROE(5y)17.76%
ROIC(3y)11.65%
ROIC(5y)13.57%
ROICexc(3y)16.09%
ROICexc(5y)18.26%
ROICexgc(3y)18.01%
ROICexgc(5y)20.6%
ROCE(3y)15.59%
ROCE(5y)18.16%
ROICexcg growth 3Y-26.89%
ROICexcg growth 5Y27.15%
ROICexc growth 3Y-26.42%
ROICexc growth 5Y27.41%
OM growth 3Y-14.74%
OM growth 5Y28.53%
PM growth 3Y-12.73%
PM growth 5Y40.95%
GM growth 3Y0.71%
GM growth 5Y1.68%
F-Score5
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 73.26% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.52% | ||
| Profit Quality | 89.38% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 4.69 |
F-Score5
WACC9.06%
ROIC/WACC0.98
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.74%
EPS 3Y-19.63%
EPS 5Y33.01%
EPS Q2Q%-30%
EPS Next Y-4.28%
EPS Next 2Y1.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.89%
Revenue growth 3Y-9.08%
Revenue growth 5Y0.83%
Sales Q2Q%-4.91%
Revenue Next Year1.47%
Revenue Next 2Y2.62%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.1%
EBIT growth 3Y-22.48%
EBIT growth 5Y29.6%
EBIT Next Year26.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-25.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-21.36%
OCF growth 3YN/A
OCF growth 5YN/A