Image Source: Pixabay
Ethan Allen Interiors Inc is known by the ticker symbol ETD and is a member of the consumer cyclical business sector as small cap furniture, fixtures, and appliances enterprise. This is my second ever report on Ethan Allen Interiors Inc for this Vista portfolio. I previously reported on it on May 10th.
Ethan Allen Interiors Inc. is a U.S.-based company that manufactures and retails home furnishings and accessories.
The firm conducts activities through its wholly-owned subsidiary, Ethan Allen Global, Inc., which operates through its own subsidiaries.
The company does business across North America, Europe, Asia, and the Middle East. The vast majority of the firm's products are produced in its U.S. plants.
The company's activities are divided between its Wholesale unit, which includes case goods, upholstered products, home accents, and its Retail segment.
The majority of revenue within Wholesale is generated by upholstered products, and the majority of revenue for the overall company is derived from the Retail segment.
Geographically, most of the company's revenue is produced in the U.S.
As of June 30, 2020, it operated a network of approximately 300 design centers.
Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.
Three key data points gauge dividend equities or funds like Ethan Allen Interiors Inc:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
ETH Price
Ethan Allen Interiors Inc's price per share was $26.22 as of yesterday's market close. One year ago its price was $11.60. So ETH's price has gained over 126% in the past year.
If ETH's stock trades in the range of $10 to $40.00 this next year, its recent $26.22 price might rise by $3.78 to reach $30.00 by July 8, 2022. My estimate is $3.00 lower than the median of the annual price gains estimated by three analysts tracking ETH for brokerage houses.
ETH Dividends
Ethan Allen Interiors Inc's most recent regular quarterly dividend payout of $0.25 was paid May 25, 2021, and equates to $1.00 annually to yield 3.81% annually based on yesterday's $26.22 closing price. ETH has paid quarterly dividends increasing annually for 11 years.
ETH Returns
Adding the $1.00 annual ETH forward-looking dividend to my $3.78 price upside estimate shows a $4.78 potential gross gain, per share, to be reduced by any costs to trade Ethan Allen shares.
At yesterday's $26.22 price per share, a little under $1000 would buy 38 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.26 per share.
Subtract that maybe $0.26 brokerage cost from my estimated $4.78 gross gain per share results in a net gain of $4.52 X 38 shares = $171.78 for a 17.18% net gain on a $996.36 investment.
So it is that Ethan Allen Interiors Inc shows a possible 17.18% net gain including a 3.81% forward estimated dividend yield.
Over the next year, a $1000 investment in ETH would generate $38.10 in cash dividends. And a single share bought at yesterday's closing price was $26.22! Thus, Ethan Allen's share price is over 30% less than the dividend income from $1K invested. So, according to the dividend dogcatcher ideal, this is the prime time to pickup ETH because the dividend from $1k invested exceeds the single share price by over 30%s Consider yourself alerted.
All of the estimates above are speculation based on the past history of Ethan Allen Interiors Inc. Only time and money invested in this stock will determine its true worth.
Comments
Log in or sign up to join the conversation.