Ethan Allen Interiors Inc. (ETD) AI Stock Analysis

Ethan Allen Interiors Inc. designs and manufactures home furnishings, serving customers across the United States, Mexico, Honduras, and Canada. Operating through Wholesale and Retail segments, the company provides case goods, such as beds, dressers, tables, and home office furniture, along with upholstery like sofas, recliners, chairs, and custom pillows. It also offers home accents, including window treatments, lighting, wall decor, and rugs. Products are marketed through approximately 141 design centers, independent retailers, and online at ethanallen.com. Founded in 1932, the Danbury, Connecticut-based firm employs 3,062 people.

Revenue has contracted over multiple years, declining from $817.8M in FY2022 to $579.5M in FY2026, reflecting a 5-year revenue CAGR of -3.3%. Net income decreased from $103.3M in FY2022 to $39.9M in FY2026, while diluted EPS dropped from $3.93 to $1.47 over the same timeframe. Gross margin remained steady, rising from 59.3% in FY2022 to 61.2% in FY2026, but operating margin compressed from 16.9% to 7.7%. For the latest quarter ended June 30, 2026, quarterly revenue fell 8.5% year-over-year, and quarterly earnings declined 3.7%.

As of June 30, 2026, Ethan Allen held $73.6M in cash and short-term investments against $120.4M in total debt, resulting in net debt of $46.7M. The balance sheet reflects a current ratio of 2.06 and a debt-to-equity ratio of 0.26 against shareholders' equity of $471.5M. In FY2026, the company generated $52.5M in operating cash flow and $41.4M in free cash flow. Capital expenditures totaled $11.0M, share buybacks took $4.8M, and dividends paid accounted for $46.3M.

Ethan Allen has a market capitalization of $504.8M and trades at a trailing P/E of 12.8x, lower than the 18.0x median of its US-listed Consumer Cyclical peers. Its forward P/E of 14.4x sits slightly above the peer median of 14.1x, while its EV/EBITDA of 7.7x is below the peer median of 11.1x. The company's price-to-sales stands at 0.9x compared to the peer median of 0.7x. Over the past year, the stock declined 9.6%, trailing the S&P 500 return of 16.8%, and its 5-year return of 37.0% lags the benchmark's 83.0% gain.

Ethan Allen provides an annual forward dividend of $1.56 per share, representing a 7.79% dividend yield. The company has paid consecutive dividends for 31 years, achieving a 5-year annualized dividend growth rate of 23.5%. The payout ratio is reported at 3.0%, and the last ex-dividend date was September 3, 2026.

Wall Street coverage consists of 2 Hold ratings, with no Buy or Sell recommendations. The mean price target is $22.00, representing a 9.8% premium to the last close of $20.03. For the current fiscal year ending June 30, 2027, consensus estimates project EPS of $1.23 on revenue of $560.5M. Over the last four quarters, the company beat EPS estimates 3 times. The next earnings date is scheduled for November 4, 2026.

This page is an AI-written research summary of Ethan Allen Interiors Inc. (ETD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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