ETHAN ALLEN INTERIORS INC (ETD) Stock Fundamental Analysis
NYSE:ETD - New York Stock Exchange, Inc. - US2976021046 - Common Stock - Currency: USD
ETD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 is valued correctly, 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.
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 a decent Return On Assets value of 7.83%, ETD is doing good in the industry, outperforming 63.49% of the companies in the same industry.
ETD has a Return On Equity (12.07%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 8.90%, ETD is doing good in the industry, outperforming 60.32% 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 significantly above the industry average of 10.49%.
The last Return On Invested Capital (8.90%) 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 | 7.83% | ||
| ROE | 12.07% | ||
| ROIC | 8.9% |
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
The Profit Margin of ETD (9.29%) is better than 79.37% of its industry peers.
In the last couple of years the Profit Margin of ETD has grown nicely.
Looking at the Operating Margin, with a value of 11.09%, ETD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
ETD's Operating Margin has improved in the last couple of years.
ETD has a better Gross Margin (60.77%) than 98.41% of its industry peers.
In the last couple of years the Gross Margin of ETD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.09% | ||
| PM (TTM) | 9.29% | ||
| GM | 60.77% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ETD is still 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
An Altman-Z score of 4.72 indicates that ETD is not in any danger for bankruptcy at the moment.
ETD's Altman-Z score of 4.72 is fine compared to the rest of the industry. ETD outperforms 77.78% 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 | 4.72 |
ROIC/WACC0.98
WACC9.07%
2.3 Liquidity
A Current Ratio of 2.29 indicates that ETD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.29, ETD is in line with its industry, outperforming 50.79% of the companies in the same industry.
ETD has a Quick Ratio of 1.34. This is a normal value and indicates that ETD is financially healthy and should not expect problems in meeting its short term obligations.
ETD has a Quick ratio of 1.34. This is in the better half of the industry: ETD outperforms 71.43% 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 -17.88% in the last year.
ETD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
ETD shows a decrease in Revenue. In the last year, the revenue decreased by -6.32%.
Measured over the past years, ETD shows a decrease in Revenue. The Revenue has been decreasing by -2.85% on average per year.
EPS 1Y (TTM)-17.88%
EPS 3Y1.52%
EPS 5Y9.71%
EPS Q2Q%-20.83%
Revenue 1Y (TTM)-6.32%
Revenue growth 3Y-1.93%
Revenue growth 5Y-2.85%
Sales Q2Q%-2.54%
3.2 Future
Based on estimates for the next years, ETD will show a decrease in Earnings Per Share. The EPS will decrease by -0.35% on average per year.
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-7.37%
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
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.
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 13.25, ETD is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as ETD.
When comparing the Price/Earnings ratio of ETD to the average of the S&P500 Index (27.41), we can say ETD is valued rather cheaply.
A Price/Forward Earnings ratio of 14.01 indicates a correct valuation of ETD.
ETD's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, ETD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 14.01 |
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 88.89% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETD indicates a somewhat cheap valuation: ETD is cheaper than 77.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
ETD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.36
EPS Next 2Y-7.37%
EPS Next 3Y-0.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.15%, ETD is a good candidate for dividend investing.
ETD's Dividend Yield is rather good when compared to the industry average which is at 3.24. ETD pays more dividend than 93.65% of the companies in the same industry.
ETD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
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.
The dividend of ETD decreased in the last 3 years.
Dividend Growth(5Y)2.28%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
ETD pays out 86.58% of its income as dividend. 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.
DP86.58%
EPS Next 2Y-7.37%
EPS Next 3Y-0.35%
29.81
-0.51 (-1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.76%
Inst Owner ChangeN/A
Ins Owners9.77%
Ins Owner Change-3%
Market Cap758.07M
Analysts48
Price Target30.6 (2.65%)
Short Float %4.44%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
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)-6.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 14.01 | ||
| P/S | 1.22 | ||
| P/FCF | 14.66 | ||
| P/OCF | 12.01 | ||
| P/B | 1.58 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)2.25
EY7.55%
EPS(NY)2.13
Fwd EY7.14%
FCF(TTM)2.03
FCFY6.82%
OCF(TTM)2.48
OCFY8.33%
SpS24.5
BVpS18.85
TBVpS17.07
PEG (NY)N/A
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 12.07% | ||
| ROCE | 11.9% | ||
| ROIC | 8.9% | ||
| ROICexc | 12.68% | ||
| ROICexgc | 14.26% | ||
| OM | 11.09% | ||
| PM (TTM) | 9.29% | ||
| GM | 60.77% | ||
| FCFM | 8.3% |
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 Turnover0.84
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 | 4.72 |
F-Score5
WACC9.07%
ROIC/WACC0.98
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-7.37%
EPS Next 3Y-0.35%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.32%
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-20.1%
EBIT growth 3Y-1.01%
EBIT growth 5Y7.48%
EBIT Next Year4.44%
EBIT Next 3Y6.85%
EBIT Next 5YN/A
FCF growth 1Y-41.7%
FCF growth 3Y-15.71%
FCF growth 5Y8.88%
OCF growth 1Y-39.14%
OCF growth 3Y-14.85%
OCF growth 5Y7.74%