Ethan Allen Interiors Inc. Common Stock (ETD)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• Generates $31 million in annual free cash flow (5.3% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.25, providing financial flexibility
• Attractive 6.9% dividend yield providing steady income returns

Concerns

• Revenue declining at 4.7% year-over-year signals potential demand weakness or market share loss

AI Analysis

Ethan Allen Interiors Inc. Common Stock is a micro-cap consumer cyclical company valued at $573 million. The business generates $600 million in annual revenue with a 2.0% net margin and $31 million in free cash flow. From a quality standpoint, Ethan shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.5. On valuation, the stock is attractively valued at 13.1x earnings, with a modest 17% margin of safety vs Graham Number. Growth dynamics show revenue growing at -4.7% and profit growth of -21.7%. The 6.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 48/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $31 million in annual free cash flow (5.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer