📊 ETD Key Takeaways
Is ETD a Good Investment? Thesis Analysis
Ethan Allen demonstrates solid financial stability with strong balance sheet metrics and healthy liquidity, but faces headwinds from declining revenue and net income trends. The company's 61% gross margin and conservative leverage provide a foundation, yet weak operating cash flow conversion and margin compression signal underlying operational challenges.
Why Buy ETD? Key Strengths
- Strong balance sheet with 0.10x debt-to-equity and $64.3M cash position
- Excellent liquidity metrics with 2.30x current ratio and 1.25x quick ratio
- Healthy gross margin of 61.1% indicates product pricing power and cost control
- Reasonable interest coverage of 3.3x demonstrates manageable debt service
ETD Investment Risks to Consider
- Revenue declining 4.9% YoY with net income down 19.1% indicating deteriorating profitability momentum
- Low operating cash flow of $15.0M relative to $24.2M operating income suggests working capital challenges or quality of earnings concerns
- Weak returns on equity (4.6%) and assets (3.1%) indicate inefficient capital deployment
- Operating margin of 8.1% is relatively thin and vulnerable to further revenue pressures
Key Metrics to Watch
- Revenue trend and gross margin stability
- Operating cash flow conversion relative to net income
- Return on equity improvement trajectory
- Working capital management and inventory turnover
ETD Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.30x current ratio provides a solid financial cushion.
ETD Profitability Ratios
ETD vs Default Sector
How ETHAN ALLEN INTERIORS INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ETD Overvalued or Undervalued?
Based on fundamental analysis, ETHAN ALLEN INTERIORS INC has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
ETD Balance Sheet & Liquidity
ETD 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: ETHAN ALLEN INTERIORS INC's revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $4.13 reflects profitable operations.
ETD Growth Metrics (YoY)
ETD Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $149.9M | N/A | $0.46 |
| Q1 2026 | $147.0M | N/A | $0.41 |
| Q3 2025 | $142.7M | $9.6M | $0.37 |
| Q1 2025 | $154.3M | $14.7M | $0.57 |
| Q3 2024 | $146.4M | $13.0M | $0.50 |
| Q2 2024 | $157.3M | $14.7M | $0.59 |
| Q1 2024 | $163.9M | $14.9M | $0.58 |
| Q3 2023 | $186.3M | $20.2M | $0.87 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ETD Capital Allocation
ETD SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for ETHAN ALLEN INTERIORS INC (CIK: 0000896156)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ETD
What is the AI rating for ETD?
ETHAN ALLEN INTERIORS INC (ETD) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ETD's key strengths?
Claude: Strong balance sheet with 0.10x debt-to-equity and $64.3M cash position. Excellent liquidity metrics with 2.30x current ratio and 1.25x quick ratio.
What are the risks of investing in ETD?
Claude: Revenue declining 4.9% YoY with net income down 19.1% indicating deteriorating profitability momentum. Low operating cash flow of $15.0M relative to $24.2M operating income suggests working capital challenges or quality of earnings concerns.
What is ETD's revenue and growth?
ETHAN ALLEN INTERIORS INC reported revenue of $296.9M.
Does ETD pay dividends?
ETHAN ALLEN INTERIORS INC pays dividends, with $26.3M distributed to shareholders in the trailing twelve months.
Where can I find ETD SEC filings?
Official SEC filings for ETHAN ALLEN INTERIORS INC (CIK: 0000896156) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ETD's EPS?
ETHAN ALLEN INTERIORS INC has a diluted EPS of $0.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ETD a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, ETHAN ALLEN INTERIORS INC has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ETD stock overvalued or undervalued?
Valuation metrics for ETD: ROE of 4.6% (sector avg: 15%), net margin of 7.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ETD stock in 2026?
Our dual AI analysis gives ETHAN ALLEN INTERIORS INC a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ETD's free cash flow?
ETHAN ALLEN INTERIORS INC's operating cash flow is $15.0M, with capital expenditures of $5.3M. FCF margin is 3.3%.
How does ETD compare to other Default stocks?
Vs Default sector averages: Net margin 7.5% (avg: 12%), ROE 4.6% (avg: 15%), current ratio 2.30 (avg: 1.8).