ETHAN ALLEN INTERIORS INC (ETD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETD - US2976021046 - Common Stock
24.21 USD
-0.57 (-2.3%)
24.21 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ETD. ETD was compared to 60 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 on the other hand it scores bad on growth.
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.
- Each year in the past 5 years ETD has been profitable.
- Each year in the past 5 years ETD had a positive operating cash flow.
1.2 Ratios
- ETD's Return On Assets of 6.42% is fine compared to the rest of the industry. ETD outperforms 63.33% of its industry peers.
- ETD's Return On Equity of 9.95% is in line compared to the rest of the industry. ETD outperforms 51.67% of its industry peers.
- ETD's Return On Invested Capital of 7.10% is in line compared to the rest of the industry. ETD outperforms 51.67% of its industry peers.
- ETD had an Average Return On Invested Capital over the past 3 years of 11.65%. This is in line with the industry average of 9.71%.
- The last Return On Invested Capital (7.10%) for ETD is well below the 3 year average (11.65%), which needs to be investigated, but indicates that ETD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.42% | ||
| ROE | 9.95% | ||
| ROIC | 7.1% |
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's Profit Margin of 7.79% is fine compared to the rest of the industry. ETD outperforms 68.33% of its industry peers.
- In the last couple of years the Profit Margin of ETD has grown nicely.
- ETD has a Operating Margin of 9.06%. This is in the better half of the industry: ETD outperforms 61.67% of its industry peers.
- ETD's Operating Margin has improved in the last couple of years.
- ETD has a Gross Margin of 60.67%. This is amongst the best in 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 | 9.06% | ||
| PM (TTM) | 7.79% | ||
| GM | 60.67% |
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
- ETD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- ETD has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ETD has more shares outstanding
- ETD has a better debt/assets ratio than last year.
2.2 Solvency
- ETD has an Altman-Z score of 4.19. This indicates that ETD is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.19, ETD is in the better half of the industry, outperforming 71.67% 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 | 4.19 |
ROIC/WACC0.75
WACC9.52%
2.3 Liquidity
- A Current Ratio of 1.90 indicates that ETD should not have too much problems paying its short term obligations.
- ETD has a worse Current ratio (1.90) than 70.00% of its industry peers.
- ETD has a Quick Ratio of 1.01. This is a normal value and indicates that ETD is financially healthy and should not expect problems in meeting its short term obligations.
- ETD's Quick ratio of 1.01 is in line compared to the rest of the industry. ETD outperforms 51.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- The earnings per share for ETD have decreased strongly by -22.22% in the last year.
- The Earnings Per Share has been growing by 33.01% on average over the past years. This is a very strong growth
- ETD shows a decrease in Revenue. In the last year, the revenue decreased by -4.61%.
- 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)-22.22%
EPS 3Y-19.63%
EPS 5Y33.01%
EPS Q2Q%-25.86%
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y-9.08%
Revenue growth 5Y0.83%
Sales Q2Q%-4.76%
3.2 Future
- Based on estimates for the next years, ETD will show a decrease in Earnings Per Share. The EPS will decrease by -5.60% on average per year.
- The Revenue is expected to grow by 1.73% on average over the next years.
EPS Next Y-19.55%
EPS Next 2Y-5.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.16%
Revenue Next 2Y1.73%
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.
- 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
- Based on the Price/Earnings ratio of 12.81, the valuation of ETD can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of ETD is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of ETD to the average of the S&P500 Index (27.21), we can say ETD is valued rather cheaply.
- A Price/Forward Earnings ratio of 13.32 indicates a correct valuation of ETD.
- ETD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ETD is cheaper than 65.00% of the companies in the same industry.
- ETD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.81 | ||
| Fwd PE | 13.32 |
4.2 Price Multiples
- ETD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ETD is cheaper than 85.00% of the companies in the same industry.
- ETD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ETD is cheaper than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 6.27 |
4.3 Compensation for Growth
- ETD has a very decent profitability rating, which may justify a higher PE ratio.
- ETD's earnings are expected to decrease with -5.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-5.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- ETD has a Yearly Dividend Yield of 6.30%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.16, ETD pays a better dividend. On top of this ETD pays more dividend than 96.67% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ETD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
5.2 History
- The dividend of ETD is nicely growing with an annual growth rate of 18.83%!
- 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)18.83%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 97.75% of the earnings are spent on dividend by ETD. This is not a sustainable payout ratio.
- The Dividend Rate of ETD has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP97.75%
EPS Next 2Y-5.6%
EPS Next 3YN/A
ETHAN ALLEN INTERIORS INC / ETD FAQ
What is the ChartMill fundamental rating of ETHAN ALLEN INTERIORS INC (ETD) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ETD.
What is the valuation status of ETHAN ALLEN INTERIORS INC (ETD) stock?
ChartMill assigns a valuation rating of 5 / 10 to ETHAN ALLEN INTERIORS INC (ETD). This can be considered as Fairly Valued.
Can you provide the profitability details for ETHAN ALLEN INTERIORS INC?
ETHAN ALLEN INTERIORS INC (ETD) has a profitability rating of 7 / 10.
What is the expected EPS growth for ETHAN ALLEN INTERIORS INC (ETD) stock?
The Earnings per Share (EPS) of ETHAN ALLEN INTERIORS INC (ETD) is expected to decline by -19.55% in the next year.
Is the dividend of ETHAN ALLEN INTERIORS INC sustainable?
The dividend rating of ETHAN ALLEN INTERIORS INC (ETD) is 6 / 10 and the dividend payout ratio is 97.75%.