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Ethan Allen (ETD)
NYSE:ETD
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Ethan Allen
(NYSE:ETD)
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Rating:66Neutral
Price Target:
$26.00
▲(5.78% Upside)
Ethan Allen's overall stock score reflects a solid financial foundation and attractive valuation, but is tempered by bearish technical indicators and mixed earnings call results. The company's strong dividend yield and gross margins are positive, but declining revenue and profitability, along with market challenges, pose risks.
Positive Factors
Strong Financial Position
A robust cash position and no debt enhance financial flexibility, allowing Ethan Allen to invest in growth opportunities and weather economic uncertainties.
High Gross Margin
High gross margins indicate efficient production and pricing strategies, supporting profitability and competitive positioning in the market.
Investment in Technology and Integration
Investments in technology and vertical integration enhance operational efficiency and product quality, strengthening long-term competitive advantages.
Negative Factors
Decreased Wholesale Orders
A decline in wholesale orders reflects challenges in expanding distribution channels, potentially impacting revenue growth and market reach.
Impact of Tariffs
Ongoing tariff impacts can increase costs and affect pricing strategies, challenging profitability and competitive positioning in the market.
Reduced Traffic
Reduced customer traffic can limit sales opportunities and revenue growth, necessitating strategic adjustments to attract and retain customers.
Ethan Allen (ETD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$616.82M
Dividend Yield7.86%
Average Volume (3M)263.86K
Price to Earnings (P/E)13.1
Beta (1Y)0.64
Revenue Growth-4.61%
EPS Growth-25.66%
CountryUS
Employees3,294
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.43
Shares Outstanding25,446,339
10 Day Avg. Volume267,280
30 Day Avg. Volume263,863
Financial Highlights & Ratios
PEG Ratio-0.71
Price to Book (P/B)1.48
Price to Sales (P/S)1.16
P/FCF Ratio14.16
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit1.91
Enterprise Value/Ebitda8.90
Forecast
1Y Price Target
$28.00Price Target Upside13.91% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.63
Revenue Forecast (FY)$607.50M
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 generates revenue primarily through the sale of furniture and home décor products, both through its retail showrooms and online sales. The company employs a direct-to-consumer sales model, which allows it to capture a higher margin by selling its products without the need for third-party retailers. Key revenue streams include sales of custom and ready-to-assemble furniture, as well as design services offered to customers. Additionally, Ethan Allen benefits from strategic partnerships with designers and industry influencers that help enhance its brand visibility and attract a broader customer base. The company's focus on high-quality, American-made products also appeals to a market segment willing to pay a premium for craftsmanship and sustainability.
Ethan Allen Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance. The company showed strong financial stability with growth in retail orders, high gross margins, and increased marketing efforts. However, challenges such as decreased wholesale orders, government sales impacts, reduced traffic, and tariff effects were significant concerns.Q1-2026 Updates
Positive Updates
Retail Written Order Growth
Retail written orders grew for the second consecutive quarter with a growth of 5.2%, driven by improved order conversion and increased promotional activities.
Strong Financial Position
The company ended the quarter with $193.7 million in cash and no debt, indicating a robust balance sheet.
High Gross Margin
Consolidated gross margin was strong at 61.4%, driven by a change in sales mix, lower raw material costs, and selective price increases.
Focus on Technology and Integration
Ethan Allen emphasized its investment in technology and vertical integration, which includes North American manufacturing that produces 75% of its furniture.
Increased Marketing Investment
National marketing costs increased by 44%, focusing on additional direct mail and paid search and social campaigns.
Negative Updates
Wholesale Orders Decrease
Wholesale orders decreased by 7.1% during the quarter, impacted by lower contract business and reductions in government spending.
Challenges with Government Sales
U.S. government sales were impacted by delays due to the government shutdown, affecting new orders.
Reduced Traffic
Despite an increase in written sales, the company experienced a significant drop in traffic, with about 30% lower traffic into design centers.
Impact of Tariffs
The company continues to be impacted by tariffs, particularly on non-furniture products, and has implemented price increases of 5-10% in some areas.
Retail Segment Sales Decline
Despite positive demand, retail segment sales were still down by 3%, with delivered retail sales lower by 3.3%.
Company Guidance
In the Ethan Allen Fiscal 2026 First Quarter Analyst Conference Call, the company's leadership provided detailed guidance on several key metrics. The first quarter saw written sales increase by 5.2% despite challenges like tariffs and government shutdowns impacting U.S. government sales. The company paid $16.4 million in cash dividends and maintained a strong cash position of $193.7 million with no debt. Retail written orders grew for the second consecutive quarter, driven by improved order conversion, promotional activities, and new product introductions, although wholesale orders decreased by 7.1%. The gross margin was robust at 61.4%, and the adjusted operating margin was 7.2%, with a headcount decrease of 4.7% to 3,189 employees. The company generated $16.8 million in operating cash flow, with capital expenditures of $2.4 million. Ethan Allen emphasized its investment in technology and marketing, with national marketing costs increasing by 44%. The company remains focused on strategic initiatives, including expanding its North American manufacturing base and continuing to provide custom furniture and design services, while navigating economic uncertainties with a strong, vertically integrated business model.Ethan Allen Financial Statement Overview
Summary
Ethan Allen's financial performance is solid with strong gross margins and a conservative balance sheet. However, challenges such as declining revenue, reduced profitability, and cash flow generation pose risks to financial health and future growth.Income Statement
Ethan Allen's income statement shows a stable gross profit margin around 60%, indicating efficient production and pricing strategies. However, the net profit margin has decreased from 13.37% in 2023 to 8.39% in TTM, reflecting reduced profitability. Revenue has been declining, with a TTM revenue growth rate of -1.20%, suggesting challenges in maintaining sales momentum. EBIT and EBITDA margins have also slightly decreased, indicating pressure on operating efficiency.Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.26 in TTM, showing prudent financial leverage. The return on equity has decreased from 22.46% in 2023 to 10.78% in TTM, indicating reduced efficiency in generating returns for shareholders. The equity ratio remains healthy, suggesting a stable capital structure.Cash Flow
Cash flow analysis reveals a decline in free cash flow growth, with a TTM rate of -23.54%, highlighting potential liquidity challenges. The operating cash flow to net income ratio is 0.40, indicating moderate cash generation relative to profits. The free cash flow to net income ratio of 0.85 suggests that a significant portion of earnings is converted to free cash flow, though this has decreased compared to previous years.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 607.30M | 614.65M | 646.22M | 791.38M | 817.76M | 685.17M |
| Gross Profit | 368.45M | 372.12M | 393.06M | 480.37M | 484.71M | 393.11M |
| EBITDA | 79.00M | 84.79M | 93.87M | 156.85M | 154.31M | 96.08M |
| Net Income | 47.33M | 51.60M | 63.82M | 105.81M | 103.28M | 60.01M |
Balance Sheet | ||||||
| Total Assets | 737.11M | 737.10M | 744.92M | 745.45M | 719.89M | 683.25M |
| Cash, Cash Equivalents and Short-Term Investments | 123.63M | 136.13M | 161.03M | 172.71M | 121.12M | 104.60M |
| Total Debt | 125.37M | 124.36M | 129.28M | 130.35M | 116.33M | 126.09M |
| Total Liabilities | 261.72M | 254.83M | 262.00M | 274.45M | 312.57M | 331.83M |
| Stockholders Equity | 475.48M | 482.36M | 482.98M | 471.03M | 407.35M | 351.44M |
Cash Flow | ||||||
| Free Cash Flow | 53.37M | 50.43M | 70.59M | 86.78M | 55.97M | 117.88M |
| Operating Cash Flow | 63.45M | 61.70M | 80.19M | 100.66M | 69.36M | 129.91M |
| Investing Cash Flow | -681.00K | -2.36M | -19.99M | -101.52M | -13.97M | -7.12M |
| Financing Cash Flow | -48.42M | -52.60M | -52.33M | -47.59M | -49.00M | -90.99M |
Ethan Allen Technical Analysis
Neutral
24.58
Price Trends
23.49
Positive
25.83
Negative
26.32
Negative
Market Momentum
0.02
Negative
61.30
Neutral
91.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETD, the sentiment is Neutral. The current price of 24.58 is above the 20-day moving average (MA) of 23.56, above the 50-day MA of 23.49, and below the 200-day MA of 26.32, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.30 is Neutral, neither overbought nor oversold. The STOCH value of 91.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ETD.
Ethan Allen Risk Analysis
Ethan Allen disclosed 26 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.60B | 17.82 | 8.82% | 2.39% | 1.78% | -25.36% | |
67 Neutral | $888.43M | 14.32 | 6.82% | ― | -10.71% | -37.03% | |
66 Neutral | $616.82M | 13.13 | 9.96% | 7.86% | -4.61% | -25.66% | |
66 Neutral | $144.44M | 18.58 | 4.70% | 4.59% | -2.74% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.33B | -49.77 | -1.95% | 4.16% | 4.34% | -141.36% | |
49 Neutral | $128.25M | -4.26 | -11.27% | 7.20% | -12.09% | -204.66% |
* Consumer Cyclical Sector Average
ETD
Ethan Allen
24.58
-1.90
-7.18%
AMWD
American Woodmark
60.51
-17.64
-22.57%
BSET
Bassett Furniture
16.59
3.43
26.06%
MLKN
MillerKnoll
19.15
-1.47
-7.13%
HOFT
Hooker Furniture
12.04
-0.03
-0.25%
LZB
La-Z-Boy Incorporated
38.64
-4.28
-9.97%
Ethan Allen Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Ethan Allen Confirms Directors and Approves Fiscal Plans
Neutral
Nov 5, 2025
On November 5, 2025, Ethan Allen Interiors Inc. held its 2025 Annual Meeting of Stockholders, where key proposals were voted on. The election of six directors for a one-year term was confirmed, and the fiscal 2025 compensation for named executive officers was approved through a non-binding advisory vote. Additionally, the appointment of CohnReznick LLP as the independent registered public accounting firm for fiscal 2026 was ratified. These decisions reflect the company’s ongoing governance and operational strategies, impacting its leadership continuity and financial oversight.
The most recent analyst rating on (ETD) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Ethan Allen stock, see the ETD Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.