Ethan Allen Interiors Inc. Common Stock (ETD)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses I can understand, run by able managers, selling at a sensible price. Ethan Allen is an interior design and home furnishings maker and retailer, with wholesale and retail segments. It has a recognizable brand and a vertically integrated model, but home furnishings is cyclical, and the numbers show the cycle biting. In fiscal 2026, the year ended 2026-06-30, revenue was $579.5M, net income $39.9M, and diluted EPS $1.56. That compares with revenue of $614.6M, net income $51.6M, and EPS $2.01 in fiscal 2025, and revenue $646.2M, net income $63.8M, and EPS $2.49 in fiscal 2024. In fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $135.8M and net income $5.9M, down from $142.7M and $9.6M in fiscal Q3 2025. So sales and profits are shrinking, not compounding. Financial health is respectable: FairStock calculates debt-to-equity of 0.26, Piotroski 8/9, Altman Z-score 3.30, and trailing free cash flow of $41.4M, an 8.0% FCF yield. Returns are modest: ROE 8.36% and ROCE 3.96%. At the 2026-10-13 close of $20.43, FairStock calculates P/E 13.10, P/B 1.09, EV/EBITDA 8.18, and a Graham Number of $25.63, implying 20.29% margin of safety. The 7.29% dividend yield is generous but must be covered by shrinking earnings. FairStock's computed Lynch category is STALWART, based on 9.2% annual profit growth over five years despite -4.9% revenue growth; that mix suggests cost control and buybacks or margin swings more than robust demand. The price looks reasonable, but the business lacks a strong growth moat today.

In plain English: Ethan Allen designs and sells home furnishings, mostly through its own stores and wholesale business. It still earns money and pays a high dividend, but sales and profits have been falling. The share price looks cheaper than its earnings and asset value alone might suggest, though the business is not growing quickly.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer