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Ethan Allen Interiors (ETD)
:ETD
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Ethan Allen
(NYSE:ETD)
Rating:74Outperform
Price Target:
$33.00
▲(13.99% Upside)
Ethan Allen (ETD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$769.36M
Dividend Yield6.34%
Average Volume (3M)302.45K
Price to Earnings (P/E)14.4
Beta (1Y)0.78
Revenue Growth-4.89%
EPS Growth-19.26%
CountryUS
Employees3,294
SectorConsumer Cyclical
Sector Strength80
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.49
Shares Outstanding25,441,837
10 Day Avg. Volume323,467
30 Day Avg. Volume302,451
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 Cap0.91
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda8.68
Forecast
1Y Price Target
$30.00Price Target Upside3.63% Upside
Rating ConsensusHold
Number of Analyst Covering1
Ethan Allen Business Overview & Revenue Model
Company DescriptionEthan Allen Interiors Inc. (ETD) is a leading interior design company and manufacturer and retailer of quality home furnishings. Founded in 1932, the company operates in the home furnishings sector, offering a wide range of products including furniture, upholstery, home accents, and decor. Ethan Allen is renowned for its classic and contemporary styles, and it provides customers with a curated shopping experience through its network of design centers across North America and its online platform.
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: |
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 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
28.95
Price Trends
29.02
Positive
27.64
Positive
27.55
Positive
Market Momentum
0.21
Positive
57.93
Neutral
28.20
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 28.95 is below the 20-day moving average (MA) of 29.56, below the 50-day MA of 29.02, and above the 200-day MA of 27.55, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 28.20 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.63B | 16.49 | 18.63% | 0.19% | 6.26% | 44.74% | |
74 Outperform | $769.36M | 14.38 | 10.69% | 6.34% | -4.89% | -19.26% | |
70 Outperform | $967.96M | 11.86 | 9.21% | ― | -8.56% | -17.10% | |
64 Neutral | $1.48B | 16.45 | 9.09% | 2.48% | 2.18% | -22.35% | |
61 Neutral | $17.96B | 13.14 | -5.29% | 3.00% | 1.25% | -13.95% | |
58 Neutral | $1.41B | 45.68 | -2.77% | 3.54% | 1.14% | -149.26% | |
46 Neutral | $228.62M | ― | 9.10% | ― | -14.40% | -2.14% |
* Consumer Cyclical Sector Average
Performance Comparison
ETD
Ethan Allen
30.24
1.94
6.86%
AMWD
American Woodmark
66.44
-19.24
-22.46%
MLKN
MillerKnoll
21.17
-5.93
-21.88%
TILE
Interface
27.88
9.61
52.60%
LZB
La-Z-Boy Incorporated
36.18
-3.16
-8.03%
SNBR
Sleep Number
9.73
-4.50
-31.62%
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.