ETHAN ALLEN INTERIORS INC (ETD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETD - US2976021046 - Common Stock
24.24 USD
+0.27 (+1.13%)
24.24 USD
0 (0%)
Taking everything into account, ETD scores 6 out of 10 in our fundamental rating. ETD was compared to 60 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 a decent Return On Assets value of 6.42%, ETD is doing good in the industry, outperforming 63.33% of the companies in the same industry.
The Return On Equity of ETD (9.95%) is comparable to the rest of the industry.
ETD's Return On Invested Capital of 7.10% is in line compared to the rest of the industry. ETD outperforms 50.00% 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 9.69%.
The 3 year average ROIC (11.65%) for ETD is well above the current ROIC(7.10%). The reason for the recent decline needs to be investigated.
| 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 has a better Profit Margin (7.79%) than 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 (9.06%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ETD has grown nicely.
With an excellent Gross Margin value of 60.67%, ETD belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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
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.
The number of shares outstanding for ETD has been increased compared to 5 years ago.
Compared to 1 year ago, ETD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.18 indicates that ETD is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.18, ETD is doing good in the industry, outperforming 71.67% of the companies in the same industry.
ETD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.18 |
ROIC/WACC0.79
WACC9.02%
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 Current ratio of 1.90. This is in the lower half of the industry: ETD underperforms 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 has a Quick ratio of 1.01. This is comparable to the rest of the industry: ETD outperforms 50.00% 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.
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.
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.
ETD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
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
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
ETD is valuated correctly with a Price/Earnings ratio of 12.83.
Compared to the rest of the industry, the Price/Earnings ratio of ETD is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ETD is valued rather cheaply.
A Price/Forward Earnings ratio of 13.33 indicates a correct valuation of ETD.
The rest of the industry has a similar Price/Forward Earnings ratio as ETD.
The average S&P500 Price/Forward Earnings ratio is at 23.88. ETD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 13.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETD is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
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 | 11.56 | ||
| EV/EBITDA | 6.19 |
4.3 Compensation for Growth
The decent 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 -5.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-5.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.83%, ETD is a good candidate for dividend investing.
ETD's Dividend Yield is rather good when compared to the industry average which is at 1.23. ETD pays more dividend than 96.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, ETD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
5.2 History
On average, the dividend of ETD grows each year by 18.83%, which is quite nice.
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.
ETD's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP97.75%
EPS Next 2Y-5.6%
EPS Next 3YN/A
24.24
+0.27 (+1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.7%
Inst Owner ChangeN/A
Ins Owners9.04%
Ins Owner Change-7.24%
Market Cap616.91M
Revenue(TTM)607.30M
Net Income(TTM)47.33M
Analysts46.67
Price Target28.56 (17.82%)
Short Float %4.48%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
Yearly Dividend1.97
Dividend Growth(5Y)18.83%
DP97.75%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.74%
Min EPS beat(2)-4.33%
Max EPS beat(2)7.81%
EPS beat(4)1
Avg EPS beat(4)-4.52%
Min EPS beat(4)-17.31%
Max EPS beat(4)7.81%
EPS beat(8)3
Avg EPS beat(8)-4.05%
EPS beat(12)6
Avg EPS beat(12)0.02%
EPS beat(16)10
Avg EPS beat(16)8.79%
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)4.32%
Revenue beat(4)1
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)4.32%
Revenue beat(8)2
Avg Revenue beat(8)-3.1%
Revenue beat(12)2
Avg Revenue beat(12)-3.08%
Revenue beat(16)5
Avg Revenue beat(16)-0.6%
PT rev (1m)0%
PT rev (3m)-6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 13.33 | ||
| P/S | 1.02 | ||
| P/FCF | 11.56 | ||
| P/OCF | 9.72 | ||
| P/B | 1.3 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 6.19 |
EPS(TTM)1.89
EY7.8%
EPS(NY)1.82
Fwd EY7.5%
FCF(TTM)2.1
FCFY8.65%
OCF(TTM)2.49
OCFY10.28%
SpS23.86
BVpS18.68
TBVpS16.91
PEG (NY)N/A
PEG (5Y)0.39
Graham Number28.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.42% | ||
| ROE | 9.95% | ||
| ROCE | 9.5% | ||
| ROIC | 7.1% | ||
| ROICexc | 9.02% | ||
| ROICexgc | 10.01% | ||
| OM | 9.06% | ||
| PM (TTM) | 7.79% | ||
| GM | 60.67% | ||
| FCFM | 8.79% |
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%
ROICexgc growth 3Y-26.89%
ROICexgc 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-Score4
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 65.07% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.96% | ||
| Profit Quality | 112.76% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 4.18 |
F-Score4
WACC9.02%
ROIC/WACC0.79
Cap/Depr(3y)73.91%
Cap/Depr(5y)75.77%
Cap/Sales(3y)1.69%
Cap/Sales(5y)1.69%
Profit Quality(3y)96.79%
Profit Quality(5y)108.2%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.22%
EPS 3Y-19.63%
EPS 5Y33.01%
EPS Q2Q%-25.86%
EPS Next Y-19.55%
EPS Next 2Y-5.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y-9.08%
Revenue growth 5Y0.83%
Sales Q2Q%-4.76%
Revenue Next Year0.16%
Revenue Next 2Y1.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-27.46%
EBIT growth 3Y-22.48%
EBIT growth 5Y29.6%
EBIT Next Year6.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-17.31%
FCF growth 3Y-3.42%
FCF growth 5Y6.4%
OCF growth 1Y-19.63%
OCF growth 3Y-3.83%
OCF growth 5Y3.2%
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%.