Ethan Allen Interiors Inc (NYSE: ETD)

Sector: Consumer Cyclical Industry: Furnishings, Fixtures & Appliances CIK: 0000896156
Market Cap 673.47 Mn
P/B 1.77
P/E 12.82
P/S 0.86
ROIC (Qtr) 6.28
Div Yield % 4.13
Rev 1y % (Qtr) -4.67
Total Debt (Qtr) 121.15 Mn
Debt/Equity (Qtr) 0.25
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About

Ethan Allen Interiors Inc., commonly referred to as Ethan Allen, operates in the home furnishings industry, offering a blend of stylish product offerings, artisanal quality, and personalized service. The company is a global luxury home fashion brand that is vertically integrated from product design to home delivery. With a strong network of entrepreneurial leaders and interior designers, Ethan Allen provides complimentary interior design service to its clients and sells a full range of home furnishing products through a retail network of design...

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Investment thesis

Bull case

  • Strong operating cash flow of 50M provides robust 0.41x coverage of total debt 121.15M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 64.27M provide 2.43x coverage of short-term debt 26.40M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 669.64M provides 5.53x coverage of total debt 121.15M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 50M provides exceptional 209.21x coverage of interest expenses 239000, showing strong debt service capability.
  • Operating cash flow of 50M provides strong 36.66x coverage of stock compensation 1.36M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 50M provides thin coverage of dividend payments of (46.27M) with a -1.08 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 40.80M represents just -112.72x of debt issuance (362000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 59.16M show weak coverage of depreciation charges of 48.34M, with a 1.22 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 50M barely covers operating expenses of (176000) with a -284.10 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of 780.74M provide limited buffer against comprehensive income items of (4.51M), which is -173.23x, indicating elevated exposure to market risks.

Consolidation Items Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Furnishings, Fixtures & Appliances
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SGI Somnigroup International Inc. 18.99 Bn 125.40 7.03 6.62 Bn
2 SN SharkNinja, Inc. 18.48 Bn 32.14 3.04 0.89 Bn
3 MHK Mohawk Industries Inc 8.23 Bn 19.54 0.77 2.34 Bn
4 PATK Patrick Industries Inc 5.10 Bn 175.24 10.70 1.53 Bn
5 WHR Whirlpool Corp /De/ 4.88 Bn 15.36 0.31 7.19 Bn
6 HNI Hni Corp 2.23 Bn 44.66 1.16 0.46 Bn
7 TILE Interface Inc 2.17 Bn 30.23 2.24 0.39 Bn
8 LEG Leggett & Platt Inc 1.59 Bn 5.64 0.39 1.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.93 0.98
EV to Cash from Ops. EV/CFO 9.36 -9.92
EV to Debt EV to Debt 5.50 25.70
EV to EBIT EV/EBIT 8.10 17.69
EV to EBITDA EV/EBITDA 6.57 15.96
EV to Free Cash Flow [EV/FCF] EV/FCF 10.82 17.28
EV to Market Cap EV to Market Cap 0.99 1.76
EV to Revenue EV/Rev 0.85 1.40
Price to Book Value [P/B] P/B 1.77 9.34
Price to Earnings [P/E] P/E 12.82 16.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.95 1.74
Dividend Payout Ratio % Div Payout % (Qtr) 104.60 9.37
Dividend per Basic Share Div per Share (Qtr) 1.81 0.51
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 113.41 28.74
Interest Coverage Int. cover (Qtr) 247.51 -23.23
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 21.45 -9.80
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.61 70.23
Dividend Growth (1y) % Div 1y % (Qtr) -6.22 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -27.91 -367.80
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -18.95 -34.93
EBIT Growth (1y) % EBIT 1y % (Qtr) -27.94 -198.55
EBT Growth (1y) % EBT 1y % (Qtr) -28.01 -72.49
EPS Growth (1y) % EPS 1y % (Qtr) -27.92 -131.79
FCF Growth (1y) % FCF 1y % (Qtr) -37.12 0.53
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -4.23 -2.36
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.84 1.16
Cash Payout Ratio Cash Payout (Qtr) 0.78 0.13
Cash Ratio Cash Ratio (Qtr) 0.47 0.30
Current Ratio Curr Ratio (Qtr) 2.30 1.96
Debt to Equity Ratio Debt/Equity (Qtr) 0.25 0.57
Interest Cover Ratio Int Coverage (Qtr) 247.51 -23.23
Times Interest Earned Times Interest Earned (Qtr) 247.51 -23.23
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.90 -2.26
EBIT Margin % EBIT Margin % (Qtr) 9.86 -4.46
EBT Margin % EBT Margin % (Qtr) 9.82 -7.49
Gross Margin % Gross Margin % (Qtr) 60.80 33.73
Net Profit Margin % Net Margin % (Qtr) 7.30 -8.04