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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
ETD had positive earnings in each of the past 5 years.
ETD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ETD (8.35%) is better than 62.50% 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.
The Return On Invested Capital of ETD (9.33%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ETD is above the industry average of 11.93%.
The 3 year average ROIC (15.63%) for ETD is well above the current ROIC(9.33%). The reason for the recent decline needs to be investigated.
| 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
With a decent Profit Margin value of 9.76%, ETD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ETD's Profit Margin has improved in the last couple of years.
ETD has a better Operating Margin (11.58%) than 68.75% of its industry peers.
ETD's Operating Margin has improved in the last couple of years.
ETD has a Gross Margin of 60.80%. This is amongst the best in the industry. ETD outperforms 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.
The number of shares outstanding for ETD has been reduced compared to 5 years ago.
Compared to 1 year ago, ETD has a worse debt to assets ratio.
2.2 Solvency
ETD has an Altman-Z score of 4.51. This indicates that ETD is financially healthy and has little risk of bankruptcy at the moment.
ETD has a better Altman-Z score (4.51) than 76.56% 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 | 4.51 |
ROIC/WACC1.01
WACC9.25%
2.3 Liquidity
A Current Ratio of 2.11 indicates that ETD has no problem at all paying its short term obligations.
ETD's Current ratio of 2.11 is in line compared to the rest of the industry. ETD outperforms 48.44% of its industry peers.
A Quick Ratio of 1.16 indicates that ETD should not have too much problems paying its short term obligations.
ETD has a better Quick ratio (1.16) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
ETD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.88%.
ETD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
Looking at the last year, ETD shows a very negative growth in Revenue. The Revenue has decreased by -18.34% in the last year.
ETD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.85% yearly.
EPS 1Y (TTM)-17.88%
EPS 3Y1.52%
EPS 5Y9.71%
EPS Q2Q%-20.83%
Revenue 1Y (TTM)-18.34%
Revenue growth 3Y-1.93%
Revenue growth 5Y-2.85%
Sales Q2Q%-2.54%
3.2 Future
ETD is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.35% yearly.
ETD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by 0.00% yearly.
EPS Next Y-18.55%
EPS Next 2Y-8.41%
EPS Next 3Y-0.35%
EPS Next 5YN/A
Revenue Next Year-4.82%
Revenue Next 2Y-1.97%
Revenue Next 3Y0%
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 11.59, the valuation of ETD can be described as very reasonable.
ETD's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.82. ETD is valued rather cheaply when compared to this.
ETD is valuated correctly with a Price/Forward Earnings ratio of 12.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETD is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ETD to the average of the S&P500 Index (21.76), we can say ETD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
85.94% of the companies in the same industry are more expensive than ETD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETD indicates a somewhat cheap valuation: ETD is cheaper than 78.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.22 | ||
| EV/EBITDA | 4.97 |
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 2Y-8.41%
EPS Next 3Y-0.35%
5. Dividend
5.1 Amount
ETD has a Yearly Dividend Yield of 5.66%, which is a nice return.
Compared to an average industry Dividend Yield of 3.47, ETD pays a better dividend. On top of this ETD pays more dividend than 93.75% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
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
80.57% of the earnings are spent on dividend by ETD. 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.
DP80.57%
EPS Next 2Y-8.41%
EPS Next 3Y-0.35%
26.07
+0.09 (+0.35%)
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-2.99%
Market Cap662.96M
Analysts48
Price Target32.64 (25.2%)
Short Float %6.89%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
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)0%
EPS NY rev (1m)-15.25%
EPS NY rev (3m)-15.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-3.37%
Revenue NY rev (3m)-3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 12.53 | ||
| P/S | 1.06 | ||
| P/FCF | 10.22 | ||
| P/OCF | 8.65 | ||
| P/B | 1.38 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 4.97 |
EPS(TTM)2.25
EY8.63%
EPS(NY)2.08
Fwd EY7.98%
FCF(TTM)2.55
FCFY9.78%
OCF(TTM)3.01
OCFY11.55%
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 | 4.51 |
F-Score5
WACC9.25%
ROIC/WACC1.01
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)-17.88%
EPS 3Y1.52%
EPS 5Y9.71%
EPS Q2Q%-20.83%
EPS Next Y-18.55%
EPS Next 2Y-8.41%
EPS Next 3Y-0.35%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.34%
Revenue growth 3Y-1.93%
Revenue growth 5Y-2.85%
Sales Q2Q%-2.54%
Revenue Next Year-4.82%
Revenue Next 2Y-1.97%
Revenue Next 3Y0%
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%