ETHAN ALLEN INTERIORS INC (ETD)
US2976021046 - Common Stock
Overall ETD gets a fundamental rating of 7 out of 10. We evaluated ETD against 68 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making ETD a very profitable company, without any liquidiy or solvency issues. ETD is valued correctly, 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.
Each year in the past 5 years ETD has been profitable.
In the past 5 years ETD always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.09%, ETD belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
The Return On Equity of ETD (16.94%) is better than 74.63% of its industry peers.
ETD has a Return On Invested Capital of 12.92%. This is amongst the best in the industry. ETD outperforms 80.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETD is significantly above the industry average of 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.09% | ||
| ROE | 16.94% | ||
| ROIC | 12.92% |
ROA(3y)12.44%
ROA(5y)8.76%
ROE(3y)21.63%
ROE(5y)14.93%
ROIC(3y)16.71%
ROIC(5y)12.66%
1.3 Margins
ETD has a Profit Margin of 11.37%. This is in the better half of the industry: ETD outperforms 79.10% of its industry peers.
In the last couple of years the Profit Margin of ETD has grown nicely.
With an excellent Operating Margin value of 14.22%, ETD belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
In the last couple of years the Operating Margin of ETD has grown nicely.
ETD has a better Gross Margin (60.65%) than 98.51% of its industry peers.
ETD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.22% | ||
| PM (TTM) | 11.37% | ||
| GM | 60.65% |
OM growth 3Y80.03%
OM growth 5Y21.49%
PM growth 3Y106.93%
PM growth 5Y23.03%
GM growth 3Y2.91%
GM growth 5Y2.27%
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 less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ETD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.01 indicates that ETD is not in any danger for bankruptcy at the moment.
ETD's Altman-Z score of 5.01 is amongst the best of the industry. ETD outperforms 80.60% 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 | 5.01 |
ROIC/WACC1.19
WACC10.88%
2.3 Liquidity
ETD has a Current Ratio of 2.31. This indicates that ETD is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.31, ETD perfoms like the industry average, outperforming 44.78% of the companies in the same industry.
ETD has a Quick Ratio of 1.31. 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 (1.31) is better than 65.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for ETD have decreased strongly by -28.93% 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 24.45% on average per year.
The Revenue for ETD has decreased by -16.59% in the past year. This is quite bad
ETD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.63% yearly.
EPS 1Y (TTM)-28.93%
EPS 3Y101.85%
EPS 5Y24.45%
EPS growth Q2Q-39.09%
Revenue 1Y (TTM)-16.59%
Revenue growth 3Y10.29%
Revenue growth 5Y0.63%
Revenue growth Q2Q-17.66%
3.2 Future
ETD is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.91% yearly.
Based on estimates for the next years, ETD will show a decrease in Revenue. The Revenue will decrease by -6.70% on average per year.
EPS Next Y-29.99%
EPS Next 2Y-12.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.15%
Revenue Next 2Y-6.7%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.45, the valuation of ETD can be described as very reasonable.
76.12% of the companies in the same industry are more expensive than ETD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.20, ETD is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.65, the valuation of ETD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ETD is valued a bit cheaper than the industry average as 74.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ETD to the average of the S&P500 Index (21.63), we can say ETD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETD is valued cheaply inside the industry as 98.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ETD is valued a bit cheaper than the industry average as 67.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.44 | ||
| EV/EBITDA | 4.2 |
4.3 Compensation for Growth
The excellent profitability rating of ETD may justify a higher PE ratio.
A cheap valuation may be justified as ETD's earnings are expected to decrease with -12.91% in the coming years.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-12.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ETD has a Yearly Dividend Yield of 4.67%, which is a nice return.
ETD's Dividend Yield is rather good when compared to the industry average which is at 3.32. ETD pays more dividend than 91.04% of the companies in the same industry.
ETD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
5.2 History
On average, the dividend of ETD grows each year by 27.96%, which is quite nice.
ETD has been paying a dividend for at least 10 years, so it has a reliable track record.
ETD has decreased its dividend recently.
Dividend Growth(5Y)27.96%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ETD pays out 70.65% of its income as dividend. This is not a sustainable payout ratio.
ETD's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP70.65%
EPS Next 2Y-12.91%
EPS Next 3YN/A
ETHAN ALLEN INTERIORS INC
NYSE:ETD (4/26/2024, 8:59:47 AM)
29.485
+0.43 (+1.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap748.92M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 9.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.09% | ||
| ROE | 16.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.22% | ||
| PM (TTM) | 11.37% | ||
| GM | 60.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-28.93%
EPS 3Y101.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y-29.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.59%
Revenue growth 3Y10.29%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y