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Ethan Allen (ETD)
NYSE:ETD
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Ethan Allen
(NYSE:ETD)
Rating:71Outperform
Price Target:
$31.00
▲(4.73%Upside)
Ethan Allen (ETD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$763.66M
Dividend Yield6.53%
Average Volume (3M)222.26K
Price to Earnings (P/E)13.3
Beta (1Y)0.71
Revenue Growth-6.32%
EPS Growth-18.35%
CountryUS
Employees3,294
SectorConsumer Cyclical
Sector Strength71
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.38
Shares Outstanding25,429,960
10 Day Avg. Volume199,913
30 Day Avg. Volume222,259
Financial Highlights & Ratios
PEG Ratio-2.35
Price to Book (P/B)1.53
Price to Sales (P/S)0.00
P/FCF Ratio14.08
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit2.07
Enterprise Value/Ebitda2.11
Forecast
1Y Price Target
$30.00Price Target Upside1.35% 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:May 05, 2025
(Q3-2025)
| % Change Since: 3.10%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
Ethan Allen demonstrated strong financial management and operational efficiency amidst a challenging economic environment. While the company faces sales declines and external uncertainties, its robust financial position, limited tariff exposure, and strategic use of technology are significant positives. However, the decrease in operating margin and uncertainties in demand trends present ongoing challenges.Q3-2025 Updates
Positive Updates
Strong Financial Position
Ethan Allen reported a strong gross margin of 61.2% and generated $10.2 million in cash from operating activities. The company maintains a robust balance sheet with $183 million in cash and no outstanding debt.
Efficient Operations
The company achieved operational efficiencies by reducing headcount by 4.5% year-over-year and 36% since 2019, leveraging technology to streamline workflows and improve margins.
Limited Tariff Exposure
Ethan Allen's exposure to tariffs is limited, with less than 5% of total costs impacted by China tariffs. The company benefits from its North American manufacturing operations, which account for 75% of its furniture production.
Continued Dividend Payments
The company declared and paid a regular quarterly cash dividend of $0.39 per share, with a current yield of 5.4%, one of the highest in the industry.
Negative Updates
Sales Decline
Consolidated net sales were $142.7 million, reflecting lower delivered unit volume. Retail segment written orders were down 13.2%, and wholesale orders decreased by 11.2%.
Decreased Operating Margin
Adjusted operating margin decreased to 8% from 10% a year ago, though it remains 180 basis points higher than pre-pandemic levels in March 2019.
Challenging Economic Environment
The company cited challenges such as tariffs, economic uncertainty, elevated interest rates, and a tough housing market impacting demand.
State Department Contract Uncertainty
Recent changes in the State Department have led to cautious purchasing behavior, potentially affecting future orders under the company's contract with the department.
Company Guidance
During the Ethan Allen Fiscal 2025 Third Quarter Analyst Conference Call, the company provided guidance characterized by strong financial metrics despite operating in a challenging economic environment. The company reported consolidated net sales of $142.7 million, with a gross margin of 61.2%, and an adjusted operating margin of 8%. Retail segment written orders decreased by 13.2%, while wholesale orders were down by 11.2%. The company maintained a robust balance sheet with no outstanding debt and ended the quarter with total cash and investments of $183 million. Positive operating cash flow amounted to $10.2 million, with capital expenditures of $2 million. Ethan Allen's effective tax rate was noted at 23.4%, and adjusted diluted EPS was $0.38. The company continues to prioritize reinvention, leveraging technology in manufacturing and marketing, while maintaining low exposure to tariffs due to a significant North American manufacturing presence.Ethan Allen Financial Statement Overview
Summary
Ethan Allen shows a stable financial foundation with strong profitability and low leverage. However, declining revenue, net profit margin, and cash flow metrics indicate potential challenges in sustaining growth. The balance sheet remains strong with low debt and a robust equity base.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 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 646.22M | 791.38M | 817.76M | 685.17M | 589.84M |
| Gross Profit | 393.06M | 480.37M | 484.71M | 393.11M | 323.13M |
| EBITDA | 93.87M | 149.09M | 154.31M | 93.67M | 31.79M |
| Net Income | 63.82M | 105.81M | 103.28M | 60.01M | 8.90M |
Balance Sheet | |||||
| Total Assets | 744.92M | 745.45M | 719.89M | 683.25M | 622.79M |
| Cash, Cash Equivalents and Short-Term Investments | 161.03M | 172.71M | 121.12M | 104.60M | 72.28M |
| Total Debt | 129.28M | 130.35M | 115.21M | 125.31M | 179.48M |
| Total Liabilities | 262.00M | 274.45M | 312.57M | 331.83M | 294.73M |
| Stockholders Equity | 482.98M | 471.03M | 407.35M | 351.44M | 328.06M |
Cash Flow | |||||
| Free Cash Flow | 70.59M | 86.78M | 55.97M | 117.88M | 36.99M |
| Operating Cash Flow | 80.19M | 100.66M | 69.36M | 129.91M | 52.70M |
| Investing Cash Flow | -19.99M | -101.52M | -13.97M | -7.12M | -4.62M |
| Financing Cash Flow | -52.33M | -47.59M | -49.00M | -90.99M | 3.70M |
Ethan Allen Technical Analysis
Positive
29.60
Price Trends
27.63
Positive
27.31
Positive
27.92
Positive
Market Momentum
0.51
Positive
60.28
Neutral
37.99
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 29.6 is above the 20-day moving average (MA) of 29.10, above the 50-day MA of 27.63, and above the 200-day MA of 27.92, indicating a bullish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 60.28 is Neutral, neither overbought nor oversold. The STOCH value of 37.99 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.21B | 14.57 | 18.15% | 0.19% | 5.41% | 44.50% | |
71 Outperform | $763.66M | 13.31 | 12.09% | 6.53% | -6.32% | -18.35% | |
70 Outperform | $1.61B | 16.66 | 9.84% | 2.26% | 3.04% | -16.49% | |
69 Neutral | $812.48M | 8.63 | 10.89% | ― | -7.47% | -9.07% | |
62 Neutral | AU$2.94B | 27.57 | 4.69% | 4.92% | 2.31% | -33.21% | |
55 Neutral | $1.36B | 45.68 | -2.77% | 4.69% | 1.14% | -149.26% | |
44 Neutral | $203.26M | ― | 9.10% | ― | -12.36% | 37.69% |
* Consumer Cyclical Sector Average
Performance Comparison
ETD
Ethan Allen
29.60
1.55
5.53%
AMWD
American Woodmark
55.60
-39.72
-41.67%
MLKN
MillerKnoll
19.76
-8.95
-31.17%
TILE
Interface
20.67
3.59
21.02%
LZB
La-Z-Boy Incorporated
37.99
-3.58
-8.61%
SNBR
Sleep Number
8.40
-2.01
-19.31%
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.