Ethan Allen Interiors Inc.
Ethan Allen Interiors Inc. Fundamental Analysis
Ethan Allen Interiors Inc. (ETD) shows weak financial fundamentals with a PE ratio of 13.28, profit margin of 7.35%, and ROE of 9.20%. The company generates $0.6B in annual revenue with weak year-over-year growth of -4.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ETD's fundamental strength across five key dimensions:
Efficiency Score
WeakETD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentETD trades at attractive valuation levels.
Growth Score
WeakETD faces weak or negative growth trends.
Financial Health Score
ExcellentETD maintains a strong and stable balance sheet.
Profitability Score
WeakETD struggles to sustain strong margins.
Key Financial Metrics
Is ETD Expensive or Cheap?
P/E Ratio
ETD trades at 13.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ETD's PEG of -1.90 indicates potential undervaluation.
Price to Book
The market values Ethan Allen Interiors Inc. at 1.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.97 times EBITDA. This is generally considered low.
How Well Does ETD Make Money?
Net Profit Margin
For every $100 in sales, Ethan Allen Interiors Inc. keeps $7.35 as profit after all expenses.
Operating Margin
Core operations generate 8.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.20 in profit for every $100 of shareholder equity.
ROA
Ethan Allen Interiors Inc. generates $6.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ethan Allen Interiors Inc. produces operating cash flow of $64.40M, showing steady but balanced cash generation.
Free Cash Flow
Ethan Allen Interiors Inc. generates strong free cash flow of $60.53M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.38 in free cash annually.
FCF Yield
ETD converts 10.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How ETD Stacks Against Its Sector Peers
| Metric | ETD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.28 | 24.84 | Better (Cheaper) |
| ROE | 9.20% | 1142.00% | Weak |
| Net Margin | 7.35% | 647.00% | Weak |
| Debt/Equity | 0.45 | 0.70 | Strong (Low Leverage) |
| Current Ratio | 2.30 | 3.93 | Strong Liquidity |
| ROA | 6.17% | -8853.00% (disorted) | Weak |
ETD outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ethan Allen Interiors Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.87%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
489.00%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
18.95%
Industry Style: Cyclical, Growth, Discretionary
High Growth