Ethan Allen Interiors, Inc. (ETH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tempur Sealy International, Inc.

HNI Corp.

Arhaus, Inc.

Ethan Allen Interiors, Inc.

Leggett & Platt, Inc.

La-Z-Boy, Inc.

Hooker Furnishings Corp.

The Lovesac Co.

MasterBrand, Inc.

Helen of Troy Ltd.

Sleep Number Corp.

Why is Ethan Allen Interiors, Inc. ?

High Management Efficiency with a high ROE of 17.21%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 41.37%

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 61.7 MM
NET PROFIT(HY) At USD 21.95 MM has Grown at -30.36%
ROCE(HY) Lowest at 10.69%

With ROE of 12.17%, it has a very attractive valuation with a 2.70 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -17.32%, its profits have fallen by -17.9%
At the current price, the company has a high dividend yield of 381.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.32% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ethan Allen Interiors, Inc. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ethan Allen Interiors, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ethan Allen Interiors, Inc.

-20.55%

-0.27

34.85%

S&P 500

17.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.99%

EBIT Growth (5y)

11.60%

EBIT to Interest (avg)

89.85

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.28

Tax Ratio

24.96%

Dividend Payout Ratio

77.50%

Pledged Shares

Institutional Holding

92.94%

ROCE (avg)

28.65%

ROE (avg)

17.21%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.81

EV to EBIT

20.50

EV to EBITDA

16.33

EV to Capital Employed

3.33

EV to Sales

2.03

PEG Ratio

Dividend Yield

217.79%

ROCE (Latest)

16.24%

ROE (Latest)

10.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 85.04%

RAW MATERIAL COST(Y)

Fallen by -0.96% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 126.28 times

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 50 MM

NET PROFIT(HY)

At USD 21.98 MM has Grown at -26.87%

ROCE(HY)

Lowest at 9.21%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.66 times

Here's what is working for Ethan Allen Interiors, Inc.

Dividend Payout Ratio

Highest at 85.04% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Debtors Turnover Ratio

Highest at 126.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Ethan Allen Interiors, Inc.

Operating Cash Flow

Lowest at USD 50 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 21.98 MM has Grown at -26.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 1.66 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio