Home Sectors Consumer Cyclical Valuation Today: Ethan Allen Interiors (NYSE: ETH)

Valuation Today: Ethan Allen Interiors (NYSE: ETH)


Ethan Allen Interiors trades as part of the manufacturing apparel and furniture industry and consumer cyclical sector. The company CEO is M. Farooq Kathwari. Ethan Allen Interiors Inc operates in the home furnishing industry. Its suite of products includes furniture, bedding, lighting and rugs.

Previous Intraday Trading Performance:

The ETH stock showed a previous change of 1.44% with an open at 19.49 and a close of 19.78. It reached an intraday high of 20.10 and a low of 19.12.

SeekingAlpha:  Amazon digs deeper into furniture


The stock has a market cap of $525.5m with 26.6m shares outstanding, of which the float is 24.4m shares. Trading volume reached 376,633 shares compared to its average volume of 417,939 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Ethan Allen Interiors shares returned 0.51% and in the past 30 trading days it returned -3.30%. Over three months, it changed -10.65%. In one year it has changed -23.81% and within that year its 52-week high was 30.10 and its 52-week low was 18.71. ETH stock is 5.72% above its 52 Week Low.

Our calculations show a 200 day moving average of 22.70 and a 50 day moving average of 20.74. Currently ETH stock is trading -12.87% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Amazon digs deeper into furniture


The last annual fiscal EPS for the company was reported at 1.32 that ended on 30th of June 2018, which according to the previous close, that is a PE of 14.98. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.11. The TTM EPS is 1.34, which comes to a TTM PE of 14.76. Historically, the PE high was 14.98 and the PE low was 13.00. If the stock reached its PE low, that would represent a price of 17.42, which is a decrease of -11.92%.

The following are the last four quarter reported earnings per share:
09-30-2018:  0.33
06-30-2018:  0.43
03-31-2018:  0.11
12-31-2017:  0.53

The dividend per share is currently 0.76, which is a dividend yield of 3.84%. Also, the payout ratio is 56.72%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 29.82, which means it is possibly undervalued and has a margin of safety of 33.67%

Indicators to Watch:

Based on the latest filings, there is 65.90% of institutional ownership. Short-interest is 2,290,181, which is 8.62% of shares outstanding. The short-interest ratio or days-to-cover ratio is 7.32. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.86

SeekingAlpha:  Era Group Inc. 2018 Q3 – Results – Earnings Call Slides

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 9.59%, return on assets is 6.81%, profit margin is 4.62%, price-to-sales is 0.61 and price-to-book is 1.33.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 3  :Past Performance Score
 6  :Financial Strength Score
 1  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.