Ethan Allen Interiors Inc (ETD) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Ethan Allen Interiors's EV/EBITDA of 7.2 is above its 5-year median of 6.0.

P/B below the industry

Ethan Allen Interiors's price-to-book of 1.22 is below the Consumer discretionary median of 1.26.

Trading below fair value

The share price of $18.36 is below our fair value estimate of $20.06.

Margin of safety under 20%

The price is 8.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -9.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -27.7% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -7.4% over the last twelve months; the Consumer discretionary median is 0.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 60.8% over the last twelve months, against 60.7% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 8.6%, below the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

No debt

Ethan Allen Interiors has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.79 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.94; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Ethan Allen Interiors paid dividends worth 9.9% of the share price over the last twelve months.

Yield above Treasuries

The 9.9% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Ethan Allen Interiors yields 9.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 7 fiscal years.

Earnings cover

Needs dividends paid and net income.

Not covered by free cash flow

Dividends take 535% of free cash flow.