📊 ETD Key Takeaways
Is Ethan Allen Interiors Inc. (ETD) a Good Investment?
Ethan Allen exhibits financial stability with a fortress balance sheet (0.11x leverage, 1.94x current ratio) and healthy gross margins (60.6%), but is burdened by declining revenue (-4.9% YoY), weak capital returns (5.9% ROE, 3.9% ROA), and margin compression evident in steeper EPS decline (-19.3%). The company is generating positive free cash flow but lacks growth catalysts and earnings momentum in a challenging furniture market.
Ethan Allen Interiors shows solid financial health with strong liquidity, low leverage, and a still-healthy gross margin, which gives it resilience in a softer demand environment. However, declining revenue, weaker earnings, modest free cash flow generation, and low returns on equity and assets point to pressured profitability and limited growth quality at the moment.
Why Buy Ethan Allen Interiors Inc. Stock? ETD Key Strengths
- Conservative capital structure with minimal debt ($50.2M LT debt vs $473.8M equity, 0.11x D/E ratio)
- Strong gross margins (60.6%) demonstrating product positioning and cost management
- Solid liquidity position with 1.94x current ratio and $66.6M cash reserves
- Positive free cash flow generation ($21.8M) despite operational headwinds
- Adequate interest coverage (4.1x) providing debt service cushion
- Strong balance sheet with low debt-to-equity of 0.10x and current ratio of 2.30x
- High gross margin of 61.1%, indicating solid pricing power and product mix
- Positive free cash flow and meaningful cash reserves of $64.27M support flexibility
ETD Stock Risks: Ethan Allen Interiors Inc. Investment Risks
- Declining top-line revenue (-4.9% YoY) indicating market share loss or demand weakness in cyclical furniture sector
- Deteriorating profitability: EPS fell -19.3% YoY, much steeper than revenue decline, signaling operating leverage working against the company
- Low returns on capital (ROE 5.9%, ROA 3.9%) suggest inefficient capital deployment and subdued growth potential
- Quick ratio of 0.94x below 1.0 reveals potential liquidity strain despite healthy current ratio, indicating inventory-dependent working capital
- Thin operating margin of 7.1% leaves minimal room for error in a cyclical, discretionary spending industry
- Zero insider activity in 90 days may signal management confidence concerns or market uncertainty
- Revenue declined 4.9% YoY and net income fell 19.1% YoY, signaling demand and earnings pressure
- Operating margin of 8.1% and interest coverage of 3.3x leave less room if profitability weakens further
- Low ROE of 4.6% and ROA of 3.1% suggest subdued capital efficiency and weak growth quality
Key Metrics to Watch
- Quarterly revenue trend and same-store sales growth
- Operating margin trajectory and gross margin sustainability
- Free cash flow consistency and capital allocation decisions
- Inventory turnover and working capital management
- Debt levels and covenant headroom
- Operating margin and net margin trend
- Free cash flow and revenue growth stabilization
Ethan Allen Interiors Inc. (ETD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Ethan Allen Interiors Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ETD Profit Margin, ROE & Profitability Analysis
ETD vs Market Sector: How Ethan Allen Interiors Inc. Compares
How Ethan Allen Interiors Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ethan Allen Interiors Inc. Stock Overvalued? ETD Valuation Analysis 2026
Based on fundamental analysis, Ethan Allen Interiors Inc. has mixed fundamental signals relative to the Market 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.
Ethan Allen Interiors Inc. Balance Sheet: ETD Debt, Cash & Liquidity
ETD Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
ETD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $135.8M | N/A | $0.23 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ethan Allen Interiors Inc. Dividends, Buybacks & Capital Allocation
ETD SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ETD's key strengths?
Claude: Conservative capital structure with minimal debt ($50.2M LT debt vs $473.8M equity, 0.11x D/E ratio). Strong gross margins (60.6%) demonstrating product positioning and cost management. ChatGPT: Strong balance sheet with low debt-to-equity of 0.10x and current ratio of 2.30x. High gross margin of 61.1%, indicating solid pricing power and product mix.
What are the risks of investing in ETD?
Claude: Declining top-line revenue (-4.9% YoY) indicating market share loss or demand weakness in cyclical furniture sector. Deteriorating profitability: EPS fell -19.3% YoY, much steeper than revenue decline, signaling operating leverage working against the company. ChatGPT: Revenue declined 4.9% YoY and net income fell 19.1% YoY, signaling demand and earnings pressure. Operating margin of 8.1% and interest coverage of 3.3x leave less room if profitability weakens further.
What is ETD's revenue and growth?
Ethan Allen Interiors Inc. reported revenue of $432.7M.
Does ETD pay dividends?
Ethan Allen Interiors Inc. pays dividends, with $36.3M 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 $1.10.
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 May 2026, Ethan Allen Interiors Inc. has a HOLD rating with 76% 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 5.9% (sector avg: 15%), net margin of 6.5% (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 $30.1M, with capital expenditures of $8.3M. FCF margin is 5.0%.
How does ETD compare to other Market stocks?
Vs Default sector averages: Net margin 6.5% (avg: 12%), ROE 5.9% (avg: 15%), current ratio 1.94 (avg: 1.8).