ETDEthan Allen Interiors Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.6×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ETD?
Ethan Allen Interiors Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.5 points above what the capital costs: growth creates value
- Operating margin
- 7.8%
Operating margin · Furnishings, Fixtures & Appliances median 7.8% · 12 months to Q4 2026
- Cash conversion
- 1.55×
Cash conversion · 1.33× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 61%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 11% |
| FY2022 | 17% |
| FY2023 | 17% |
| FY2024 | 12% |
| FY2025 | 10% |
| FY2026 | 7.8% |
Details›
- Gross margin12 months to Q4 2026
- 61%
- Operating margin12 months to Q4 2026
- 7.8%
- Net margin12 months to Q4 2026
- 6.9%
- Free cash flow margin
- 7.1%
- Revenue, trailing twelve months
- $579M
- Free cash flow, trailing twelve months
- $41M
- Net income, trailing twelve months
- $40M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Furnishings, Fixtures & Appliances
Ranks #6 of 13 by RyuScore