Ethan Allen Interiors Inc. (ETD)
Valuation Overview•Is Ethan Allen Interiors Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 60/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street is broadly bullish, projecting solid upside. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
ETD demonstrates adequate business quality with stable profitability. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is facing top-line contraction (-9.1% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 7.8%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $135.8M | -4.9% | -9.1% | +0.8% | -2.0% | |
| EBITDA | $10.3M | — | -20.5% | — | — | |
| Net Income | $5.9M | -19.1% | -20.7% | — | +3.3% | |
| EPS (Diluted) | $0.23 | -19.3% | -20.8% | +42.7% | +4.7% | |
| Free Cash Flow | $12.1M | -28.6% | -3.4% | +6.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 60.4% | 60.7% | 59.7% | 57.3% |
| Operating Margin | 7.8% | 13.2% | 13.5% | 10.0% |
| Net Margin | 6.8% | 10.5% | 10.6% | 7.5% |
| FCF Margin | 10.9% | 10.0% | 10.8% | 8.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.21 | $0.24 | +14.3% | ||
| Q1'26 | $0.38 | $0.44 | +15.8% | ||
| Q4'25 | $0.44 | $0.43 | -2.3% | ||
| Q3'25 | $0.45 | $0.49 | +8.9% | ||
| Q2'25 | $0.45 | $0.38 | -15.6% | ||
| Q1'25 | $0.60 | $0.59 | -1.7% | ||
| Q4'24 | $0.56 | $0.58 | +3.6% | ||
| Q3'24 | $0.57 | $0.70 | +22.8% |
Total return is -15.7% (1Y), lagging the benchmark by -40.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -4.0% | -13.3% | — |
| 1Y | -15.7% | -40.7% | +6.6% |
| 3YCAGR | -1.3% | -21.0% | +20.5% |
| 5YCAGR | +3.3% | -10.1% | +36.4% |
| 10YCAGR | +1.1% | -12.4% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Ethan Allen Interiors Inc. (ETD) valuation, health, and returns.
Based on peer relative multiples, Ethan Allen Interiors Inc. appears Fair versus peers compared to industry peers.
Ethan Allen Interiors Inc. has multiple valuation anchors: Peer Relative Fair Value: $20.17 | Wall Street Analyst Target: $24.00 (implying +13.4% upside). A convergence of these signals offers higher conviction.
Ethan Allen Interiors Inc. displays good financial health with a composite quality score of 60/100, supported by a Altman Z-Score of 3.9 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 8.7%.
Ethan Allen Interiors Inc. pays a 9.2% dividend yield, covered by a 97% payout ratio with 7 years of growth, supplemented by a 0.0% buyback yield.
Ethan Allen Interiors Inc.'s current growth trajectory is Accelerating. The company achieved -4.9% 1Y revenue growth and -19.3% 1Y EPS growth, compared to its 3Y revenue CAGR of -9.1%.
Wall Street consensus is Hold based on 10 analysts, beating EPS expectations in 50% of recent quarters with a 2-quarter streak. The consensus price target represents a +13.4% change from current levels.
Investment risks for Ethan Allen Interiors Inc. include: -38.7% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.88x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.