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Ethan Allen (ETD)
NYSE:ETD
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Ethan Allen
(NYSE:ETD)
Rating:74Outperform
Price Target:
$33.00
▲(10.92% Upside)
Ethan Allen (ETD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$756.54M
Dividend Yield6.45%
Average Volume (3M)234.82K
Price to Earnings (P/E)14.8
Beta (1Y)0.80
Revenue Growth-4.89%
EPS GrowthN/A
CountryUS
Employees3,294
SectorConsumer Cyclical
Sector Strength75
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.49
Shares Outstanding25,429,960
10 Day Avg. Volume330,907
30 Day Avg. Volume234,820
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)1.45
Price to Sales (P/S)1.08
P/FCF Ratio9.90
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda8.67
Forecast
1Y Price Target
$31.50Price Target Upside5.88% 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 makes money primarily through the sale of home furnishings and related products. The company operates a vertically integrated business model, which means it designs, manufactures, and sells its products through its own retail network and e-commerce platform. Key revenue streams include direct sales from its design centers and online sales. The company also generates revenue through its interior design services, which help customers create personalized living spaces. Additionally, Ethan Allen maintains strategic partnerships with various suppliers to ensure a steady supply of high-quality materials for its manufacturing operations, contributing to its profitability.
Ethan Allen Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q4-2025)
| % Change Since: 4.09%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call reflected a company successfully managing a challenging environment with strong financial results and operational efficiencies. While there are some areas of concern such as decreased wholesale orders and the impact of promotions on margins, the robust balance sheet, improved retail orders, and consistent dividend payments highlight a positive outlook.Q4-2025 Updates
Positive Updates
Strong Financial Performance
Fiscal 2025 consolidated net sales were $614.6 million, with a fourth-quarter contribution of $160.4 million. Adjusted operating margin for the full year was 10.2%, and the fourth quarter was 9.7%, reflecting tight expense management and increased advertising spend.
Robust Balance Sheet
The company ended the year with cash and investments totaling $196.2 million and no outstanding debt. Operating cash flow for the year was $61.7 million, reflecting strong liquidity.
Improvements in Retail Orders
Retail written orders rose by 1.6% during the fourth quarter, indicating signs of demand improvement driven by new product introductions and promotional levels.
Dividend Payments
The company declared a special cash dividend of $0.25 per share in addition to a regular quarterly cash dividend of $0.39 per share, continuing the practice for the fifth consecutive year.
Operational Efficiency Gains
Headcount reduced by 5.7% as part of operational efficiency improvements, with a focus on technology and streamlined workflows contributing to these gains.
Negative Updates
Decrease in Wholesale Orders
Wholesale orders decreased by 6.8% during the quarter, impacted by the contract business, indicating challenges in this segment.
Reduced Volume and Backlog
Sales were offset by lower delivered unit volume, reduced backlog, less traffic, and fewer contract sales. Wholesale backlog ended at $48.9 million, reflecting historical norms but a decrease from previous quarters.
Clearance and Promotional Impact on Margins
The consolidated gross margin for the fourth quarter was 59.9%, impacted by higher clearance sales and increased promotional activity, although partially offset by a change in sales mix.
Company Guidance
During the Ethan Allen Fiscal 2025 Fourth Quarter Analysis Conference Call, the company reported consolidated net sales of $614.6 million for the fiscal year, with fourth quarter sales of $160.4 million. The fiscal year's consolidated gross margin stood at 60.5%, slightly down from 60.8% the previous year, while the fourth quarter gross margin was 59.9%. Ethan Allen maintained strong operating margins, with a full-year adjusted operating margin of 10.2% and a fourth quarter margin of 9.7%. The company ended the fiscal year with a robust balance sheet, holding $196.2 million in cash and investments, and no outstanding debt. Operating cash flow for the quarter reached $24.8 million, contributing to a full-year total of $61.7 million. Wholesale orders experienced a 6.8% decrease in the fourth quarter, but retail written orders rose by 1.6%, driven by new product introductions and promotional activities. The company paid out $50.1 million in annual dividends and announced a special cash dividend of $0.25 per share, alongside a regular quarterly dividend of $0.39 per share. Ethan Allen's vertically integrated business model and focus on operational efficiencies, including a 5.7% reduction in headcount to 3,211 employees, have helped the company navigate a challenging industry environment.Ethan Allen Financial Statement Overview
Summary
Ethan Allen displays a solid financial foundation with strong profitability and low leverage. However, challenges in revenue growth and slight declines in cash flow metrics are noted. The company remains financially stable with a strong equity base, but recent trends indicate potential headwinds.Income Statement
Ethan Allen's income statement shows a declining trend in revenue over the past years, with TTM revenue at $622.92 million, down from $646.22 million in the previous annual period. Gross profit margin remains strong at approximately 60.73% for TTM. However, net profit margin has slightly decreased to 9.28% compared to 9.88% last year. The EBIT and EBITDA margins also show a slight decline, reflecting pressure on operating efficiency. While profitability is adequate, the downward trend in revenues and margins indicates potential challenges in sustaining growth.65
Positive
Balance Sheet
The balance sheet of Ethan Allen shows a stable financial position with a debt-to-equity ratio of 0.26, indicating low leverage. The equity ratio stands at 64.87%, reflecting a strong equity base. Return on equity (ROE) is at 12.07% for TTM, indicating decent profitability relative to shareholders' equity. The company appears financially stable with a healthy balance between assets and liabilities, although recent declines in stockholders' equity may warrant attention.72
Positive
Cash Flow
Ethan Allen's cash flow statement highlights a decrease in operating cash flow to $63.12 million TTM from $80.20 million in the previous year. Free cash flow has also decreased slightly, resulting in a free cash flow growth rate of -26.77%. The operating cash flow to net income ratio is favorable at 1.09, reflecting the company's ability to generate cash from operations. Although there is a decline in cash flow metrics, the company maintains positive free cash flow, which is essential for ongoing investments and debt management.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 614.65M | 646.22M | 791.38M | 817.76M | 685.17M | 589.84M |
| Gross Profit | 372.12M | 393.06M | 480.37M | 484.71M | 393.11M | 323.13M |
| EBITDA | 80.99M | 93.87M | 149.09M | 154.31M | 93.67M | 31.79M |
| Net Income | 51.60M | 63.82M | 105.81M | 103.28M | 60.01M | 8.90M |
Balance Sheet | ||||||
| Total Assets | 737.10M | 744.92M | 745.45M | 719.89M | 683.25M | 622.79M |
| Cash, Cash Equivalents and Short-Term Investments | 136.13M | 161.03M | 172.71M | 121.12M | 104.60M | 72.28M |
| Total Debt | 123.67M | 129.28M | 130.35M | 115.21M | 125.31M | 179.48M |
| Total Liabilities | 254.83M | 262.00M | 274.45M | 312.57M | 331.83M | 294.73M |
| Stockholders Equity | 482.27M | 482.98M | 471.03M | 407.35M | 351.44M | 328.06M |
Cash Flow | ||||||
| Free Cash Flow | 52.34M | 70.59M | 86.78M | 55.97M | 117.88M | 36.99M |
| Operating Cash Flow | 61.70M | 80.19M | 100.66M | 69.36M | 129.91M | 52.70M |
| Investing Cash Flow | 2.25M | -19.99M | -101.52M | -13.97M | -7.12M | -4.62M |
| Financing Cash Flow | -42.59M | -52.33M | -47.59M | -49.00M | -90.99M | 3.70M |
Ethan Allen Technical Analysis
Positive
29.75
Price Trends
28.08
Positive
27.16
Positive
27.37
Positive
Market Momentum
0.38
Negative
57.90
Neutral
67.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETD, the sentiment is Positive. The current price of 29.75 is above the 20-day moving average (MA) of 28.99, above the 50-day MA of 28.08, and above the 200-day MA of 27.37, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 67.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.56B | 16.52 | 18.63% | 0.15% | 6.26% | 44.74% | |
74 Outperform | $756.54M | 14.78 | 10.69% | 6.45% | -4.89% | ― | |
73 Outperform | $941.61M | 9.96 | 10.89% | ― | -7.47% | -9.07% | |
71 Outperform | $1.59B | 16.42 | 9.84% | 2.23% | 3.04% | -16.49% | |
56 Neutral | HK$25.46B | 5.05 | -2.69% | 5.69% | -0.43% | -53.15% | |
56 Neutral | $1.42B | 45.68 | -2.77% | 3.49% | 1.14% | -149.26% | |
44 Neutral | $243.19M | ― | 9.10% | ― | -14.40% | -2.14% |
* Consumer Cyclical Sector Average
Performance Comparison
ETD
Ethan Allen
29.75
1.20
4.20%
AMWD
American Woodmark
63.46
-30.54
-32.49%
MLKN
MillerKnoll
21.51
-6.53
-23.29%
TILE
Interface
26.74
9.30
53.33%
LZB
La-Z-Boy Incorporated
38.66
-2.46
-5.98%
SNBR
Sleep Number
10.68
-2.20
-17.08%
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.