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Ethan Allen (ETD)
NYSE:ETD
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Ethan Allen
(NYSE:ETD)
67Neutral
Ethan Allen (ETD) vs. S&P 500 (SPY)
Market Cap
$656.09M
Dividend Yield6.05%
Average Volume (3M)279.80K
Price to Earnings (P/E)10.8
Beta (1Y)0.69
Revenue Growth-11.10%
EPS Growth-23.77%
CountryUS
Employees3,318
SectorConsumer Cyclical
Sector Strength55
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)2.39
Shares Outstanding25,429,960
10 Day Avg. Volume311,582
30 Day Avg. Volume279,798
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.10
Price to Cash Flow (P/CF)11.60
P/FCF Ratio15.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.00Price Target Upside24.03% Upside
Rating ConsensusHold
Number of Analyst Covering2
Ethan Allen Business Overview & Revenue Model
Company DescriptionEthan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States, Mexico, Honduras, and Canada. The company operates in two segments, Wholesale and Retail. Its products include case goods items, such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents; upholstery items comprising sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather; and home accent items consisting of window treatments and drapery hardware, wall decors, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, wall coverings, and home and garden furnishings. The company markets and sells its products under the Ethan Allen brand through home furnishing retail networks and independent retailers, as well as through ethanallen.com website. As of June 30, 2021, it operated a network of approximately 302 design centers. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.
How the Company Makes MoneyEthan Allen makes money primarily through the sale of home furnishings and accessories via its retail design centers and online platform. The company's revenue model is driven by direct-to-consumer sales, which include custom design services to help customers personalize their home interiors. Ethan Allen also generates revenue through its manufacturing operations, as it owns and operates several manufacturing facilities, enabling control over production costs and quality. Key revenue streams include furniture sales, interior design services, and home decor products. The company benefits from its strong brand recognition, robust distribution network, and strategic partnerships with suppliers and designers, which contribute to its earnings.
Ethan Allen Financial Statement Overview
Summary
Ethan Allen presents a mixed financial picture. While profitability and balance sheet health are commendable, revenue decline and cash flow pressures pose challenges. The company exhibits strong operational efficiency with stable margins and low leverage, but needs to address revenue growth and enhance cash flow generation to maintain financial robustness.Income Statement
Ethan Allen's income statement shows stable profitability with a gross profit margin of 60.75% and a net profit margin of 9.76% for TTM (Trailing-Twelve-Months). However, there's a notable revenue decline from $817.76M in 2022 to $626.65M in 2024 TTM, impacting the growth trajectory. The EBIT and EBITDA margins remain solid at 11.45% and 13.78% respectively, indicating efficient operational management.70
Positive
Balance Sheet
The balance sheet is strong with a debt-to-equity ratio of 0.26, reflecting low leverage and a healthy equity position. The return on equity is 12.78% for TTM, showcasing decent profitability for shareholders. The equity ratio stands robust at 65.35%, indicating a solid financial structure with a high proportion of assets funded by equity.75
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow from $86.78M in 2023 to $57.03M in TTM 2024, reflecting reduced cash generation capability. The operating cash flow to net income ratio is favorable at 1.06, indicating effective cash conversion from profits. However, the free cash flow to net income ratio of 0.93 suggests some pressure on free cash flow generation relative to net income.65
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 626.65M | 646.22M | 791.38M | 817.76M | 685.17M | 589.84M | Gross Profit |
| 380.79M | 393.06M | 480.37M | 484.71M | 393.11M | 323.13M | EBIT |
| 71.75M | 77.99M | 137.20M | 138.25M | 77.28M | -8.25M | EBITDA |
| 92.37M | 93.87M | 149.09M | 154.31M | 93.67M | 28.48M | Net Income Common Stockholders |
| 61.19M | 63.82M | 105.81M | 103.28M | 60.01M | 8.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 73.95M | 161.03M | 172.71M | 121.12M | 104.60M | 72.28M | Total Assets |
| 644.39M | 744.92M | 745.45M | 719.89M | 683.25M | 622.79M | Total Debt |
| 203.24M | 129.28M | 130.35M | 115.21M | 125.31M | 179.48M | Net Debt |
| 131.31M | 59.57M | 68.22M | 5.29M | 20.71M | 107.20M | Total Liabilities |
| 355.84M | 262.00M | 274.45M | 312.57M | 331.83M | 294.73M | Stockholders Equity |
| 288.55M | 482.98M | 471.03M | 407.35M | 351.44M | 328.06M |
| Cash Flow | Free Cash Flow | ||||
| 64.87M | 70.59M | 86.78M | 55.97M | 117.88M | 36.99M | Operating Cash Flow |
| 76.60M | 80.19M | 100.66M | 69.36M | 129.91M | 52.70M | Investing Cash Flow |
| -21.90M | -19.99M | -101.52M | -13.97M | -7.12M | -4.62M | Financing Cash Flow |
| -51.70M | -52.33M | -47.59M | -49.00M | -90.99M | 3.70M |
Ethan Allen Technical Analysis
Negative
25.80
Price Trends
28.37
Negative
28.56
Negative
28.67
Negative
Market Momentum
-0.14
Negative
50.42
Neutral
50.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETD, the sentiment is Negative. The current price of 25.8 is below the 20-day moving average (MA) of 27.44, below the 50-day MA of 28.37, and below the 200-day MA of 28.67, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 50.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETD.
Ethan Allen Risk Analysis
Ethan Allen disclosed 27 risk factors in its most recent earnings report. Ethan Allen reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ethan Allen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.52B | 12.62 | 12.40% | 2.28% | 1.81% | 8.09% | |
67 Neutral | $656.09M | 10.81 | 12.86% | 6.05% | -11.10% | -23.77% | |
66 Neutral | $19.62B | 18.08 | 53.91% | 1.64% | -0.50% | 24.11% | |
60 Neutral | $1.06B | ― | -50.58% | 2.69% | -7.27% | -272.76% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
56 Neutral | $135.16M | ― | -3.83% | 5.07% | -15.43% | -202.84% | |
47 Neutral | $4.45B | 71.56 | -38.18% | ― | 1.41% | -62.21% |
* Consumer Cyclical Sector Average
Performance Comparison
ETD
Ethan Allen
25.80
-5.13
-16.59%
BSET
Bassett Furniture
15.38
1.96
14.61%
LZB
La-Z-Boy Incorporated
36.81
1.75
4.99%
LEG
Leggett & Platt
7.43
-10.90
-59.47%
WSM
Williams-Sonoma
138.86
-13.58
-8.91%
RH
RH
149.39
-128.91
-46.32%
Ethan Allen Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -8.48% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call showed a strong performance with growth in orders and a solid financial standing, despite challenges like revenue decline, wildfires, and potential tariff concerns. The company's proactive approach in marketing and maintaining a strong balance sheet positions it well for future growth.Highlights
Strong Financial Performance Despite Challenges
Ethan Allen reported consolidated net sales of $157.3 million, operating income of $18.2 million, and an operating margin of 11.5%. The company also achieved a gross margin of 60.3% and diluted EPS of $0.59, with strong operating cash flow and an increase in cash to $184.2 million.
Significant Growth in Retail and Wholesale Orders
Retail segment orders grew by 15.8%, while Wholesale segment orders increased by 14.3%, driven by promotional activity, strong financing programs, and heightened interest in home furnishings.
Improved Written Order and Backlog Positions
The quarter concluded with a strong December, aided by special promotions, with the Wholesale backlog at $57.7 million, up 5% from a year ago.
Strong Balance Sheet and No Debt
Ethan Allen ended the quarter with $184.2 million in cash and investments, no outstanding debt, and generated $11.6 million of cash from operating activities.
Increased Marketing Initiatives
Marketing spend increased by 15%, from 2% to 2.5% of sales, to attract new customers and leverage new forms of marketing.
Lowlights
Revenue Decline Compared to Previous Year
Consolidated net sales decreased from $167.3 million a year ago to $157.3 million, attributed to lower backlogs, fewer contract sales, and a lower delivered unit volume.
Impact of Wildfires and Weather
The wildfires in Southern California and challenging weather conditions in January affected operations and slowed sales.
Decrease in Adjusted Operating Margin
Adjusted operating margin decreased to 11.5% from 12.8% a year ago due to various factors despite improvements from pre-pandemic levels.
Potential Tariff Concerns
Exposure to potential tariffs on imports from Mexico, which represents approximately 25% of total manufacturing, poses a risk.
Company Guidance
During the Ethan Allen Fiscal 2025 Second Quarter Analyst Conference Call, the company reported consolidated net sales of $157.3 million, a gross margin of 60.3%, and an operating income of $18.2 million, resulting in an operating margin of 11.5%. The diluted EPS was $0.59, and they ended the quarter with $184.2 million in operating cash flow, an increase of $16.4 million from the previous year. Retail segment orders grew by 15.8%, while Wholesale segment orders increased by 14.3%. The Wholesale backlog totaled $57.7 million, a 5% increase year-over-year. The company's headcount was reduced by 6.9% compared to the previous year. Capital expenditures amounted to $3.8 million, and the Board approved a regular cash dividend of $0.39 per share, payable on February 26, 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.