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Ethan Allen (ETD)
NYSE:ETD
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Ethan Allen
(NYSE:ETD)
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Rating:74Outperform
Price Target:
$33.00
▲(12.90% Upside)
Ethan Allen's overall stock score reflects its solid financial performance and attractive valuation, supported by strong operational efficiencies and a robust balance sheet. While technical indicators show neutral momentum, the company's challenges in wholesale orders and margin pressures are notable risks.
Ethan Allen (ETD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$734.51M
Dividend Yield6.7%
Average Volume (3M)290.02K
Price to Earnings (P/E)14.3
Beta (1Y)0.74
Revenue Growth-4.89%
EPS Growth-19.26%
CountryUS
Employees3,294
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.49
Shares Outstanding25,441,837
10 Day Avg. Volume270,006
30 Day Avg. Volume290,018
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 Cap0.96
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda8.29
Forecast
1Y Price Target
$31.50Price Target Upside7.77% Upside
Rating ConsensusModerate Buy
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 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:Jul 30, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
Ethan Allen demonstrated strong financial results and operational efficiencies in a challenging industry environment, with positive retail order growth and robust cash management. However, the company faced challenges in wholesale orders and margin pressures due to promotional activities.Q4-2025 Updates
Positive Updates
Strong Financial Performance
Ethan Allen reported fiscal 2025 consolidated net sales of $614.6 million, with fourth quarter sales of $160.4 million. Gross margin for the full year was 60.5% and 59.9% for the fourth quarter. The company maintained a robust balance sheet with cash and investments of $196.2 million and no outstanding debt.
Retail Order Growth
Retail written orders rose by 1.6% during the fourth quarter, driven by strong new product introductions and promotional efforts.
Operational Efficiencies
Ethan Allen reduced headcount by 5.7% compared to the previous year, contributing to strong operating margins of 10.2% for the full year and 9.7% for the fourth quarter.
Cash Dividends
The company continued its practice of paying quarterly cash dividends, including a special cash dividend of $0.25 per share announced for August.
Negative Updates
Wholesale Orders Decline
Wholesale orders decreased by 6.8% during the fourth quarter, impacted by the contract business.
Challenging Industry Environment
The home furnishings industry faced challenges, including lower delivered unit volume, reduced backlog, and fewer contract sales.
Clearance and Promotional Activities
The fourth quarter gross margin was impacted by higher clearance sales, increased promotional activity, and lower manufacturing production.
Company Guidance
During the Ethan Allen Fiscal 2025 Fourth Quarter Analysis Conference Call, the company highlighted several key metrics indicating strong financial performance amid a challenging environment. Fiscal 2025 consolidated net sales were reported at $614.6 million, with fourth-quarter sales of $160.4 million. The full-year gross margin was 60.5%, while the fourth-quarter gross margin was 59.9%. Operating margins were 10.2% for the year and 9.7% for the quarter. Adjusted earnings per share (EPS) stood at $2.04 for the year and $0.49 for the fourth quarter. Ethan Allen maintained a robust balance sheet, ending the year with $196.2 million in cash and investments and no outstanding debt. The company generated $24.8 million in operating cash flow during the quarter, summing up to $61.7 million for the full year. Additionally, the company reported a 1.6% increase in retail written orders for the fourth quarter, attributed to new product introductions and promotional activities. Despite a headcount reduction of 5.7% to 3,211 employees, the company continued to invest in manufacturing, retail, and technology, with capital expenditures totaling $11.3 million for the year. Ethan Allen declared a regular quarterly cash dividend of $0.39 per share and a special cash dividend of $0.25 per share, reflecting its ongoing commitment to shareholder returns.Ethan Allen Financial Statement Overview
Summary
Ethan Allen demonstrates solid financial health with strong margins and a stable balance sheet. Despite declines in revenue and free cash flow, the company maintains operational efficiency and financial stability, supported by low leverage and a strong equity position.Income Statement
Ethan Allen's income statement shows a strong gross profit margin of approximately 60.5% for the latest year, indicating efficient production and pricing strategies. However, the net profit margin has decreased to 8.4% from 9.9% the previous year, reflecting some pressure on profitability. Revenue has declined by 1.3% year-over-year, which is a concern for growth. Despite this, the company maintains a solid EBIT margin of 11.3%, suggesting operational efficiency.75
Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio of 0.26, indicating conservative leverage and financial stability. The return on equity is 10.7%, showing effective use of equity to generate profits. The equity ratio stands at 65.4%, reflecting a strong equity base relative to total assets, which enhances financial resilience.80
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 2.5%, which could impact future investments. However, the operating cash flow to net income ratio is healthy at 1.2, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 0.82, suggesting that a significant portion of earnings is converted into free cash flow.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 614.65M | 614.65M | 646.22M | 791.38M | 817.76M | 685.17M |
| Gross Profit | 372.12M | 372.12M | 393.06M | 480.37M | 484.71M | 393.11M |
| EBITDA | 84.79M | 69.51M | 93.87M | 149.09M | 154.31M | 93.67M |
| Net Income | 51.60M | 51.60M | 63.82M | 105.81M | 103.28M | 60.01M |
Balance Sheet | ||||||
| Total Assets | 737.10M | 737.10M | 744.92M | 745.45M | 719.89M | 683.25M |
| Cash, Cash Equivalents and Short-Term Investments | 136.13M | 136.13M | 161.03M | 172.71M | 121.12M | 104.60M |
| Total Debt | 123.67M | 123.67M | 129.28M | 130.35M | 115.21M | 125.31M |
| Total Liabilities | 254.83M | 254.83M | 262.00M | 274.45M | 312.57M | 331.83M |
| Stockholders Equity | 482.27M | 482.36M | 482.98M | 471.03M | 407.35M | 351.44M |
Cash Flow | ||||||
| Free Cash Flow | 52.34M | 50.43M | 70.59M | 86.78M | 55.97M | 117.88M |
| Operating Cash Flow | 61.70M | 61.70M | 80.19M | 100.66M | 69.36M | 129.91M |
| Investing Cash Flow | -2.36M | -2.36M | -19.99M | -101.52M | -13.97M | -7.12M |
| Financing Cash Flow | -52.60M | -52.60M | -52.33M | -47.59M | -49.00M | -90.99M |
Ethan Allen Technical Analysis
Neutral
29.23
Price Trends
29.27
Negative
28.04
Positive
27.60
Positive
Market Momentum
-0.11
Positive
42.64
Neutral
18.81
Positive
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 29.23 is below the 20-day moving average (MA) of 29.37, below the 50-day MA of 29.27, and above the 200-day MA of 27.60, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 18.81 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $734.51M | 14.34 | 10.69% | 6.70% | -4.89% | -19.26% | |
70 Outperform | 1.01B | 12.39 | 9.17% | ― | -8.56% | -17.10% | |
64 Neutral | 1.43B | 15.55 | 9.01% | 2.53% | 2.18% | -22.35% | |
55 Neutral | 137.30M | 54.66 | 1.48% | 5.06% | -7.22% | ― | |
52 Neutral | 121.15M | -9.21 | -6.12% | 8.16% | -6.46% | -1110.82% | |
45 Neutral | 1.23B | -32.22 | -2.89% | 4.17% | 1.14% | -149.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
ETD
Ethan Allen
29.23
-0.63
-2.11%
AMWD
American Woodmark
69.40
-23.56
-25.34%
BSET
Bassett Furniture
15.80
1.63
11.50%
MLKN
MillerKnoll
17.98
-5.55
-23.59%
HOFT
Hooker Furniture
11.27
-5.24
-31.74%
LZB
La-Z-Boy Incorporated
34.81
-6.85
-16.44%
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.