Daily Stock Analysis: Ethan Allen Interiors
Ethan Allen Interiors Inc has the ticker symbol ETH and is a small-cap member of the consumer cyclical sector as a furniture, fixtures, and appliances firm. This is my first report on Ethan Allen Interiors Inc for this Vista folio or any of my other five folios for that matter.
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 that includes case goods, upholstered products, and 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 a company has made, is making, and will make money.
ETH Price
Ethan Allen's price per share closed at $31.99 Friday. One year ago its price was $11.53. Thus, the price per share has grown almost 300% as it recovered from last year's Covid market slump.
Should Ethan Allen Interiors Inc stock trade in the range of $12 to $42.00 this year, its recent $31.99 price might rise by $2.01 to reach $34.00 by May 10, 2022. My estimate is in line with the median of one-year price estimates from three analysts tracking ETH.
ETH Dividends
Ethan Allen's most recent quarterly dividend of $0.25 is payable May 25th, and equates to $1.75 annually (including an annual supplemental special dividend), and yields 5.47% at yesterday's $31.99 closing price. Ethan Allen Interiors Inc has paid annually increasing quarterly dividends for 11 years.
ETH Returns
Adding the $1.75 annual Ethan Allen forward-looking dividend to my $2.01 price upside estimate shows a $3.76 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little under $1,000.00 today in Ethan Allen Interiors Inc at $31.99 per share, we'd buy 31 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.32 per share.
Subtract that maybe $0.32 brokerage cost from my estimated $3.76 gross gain per share results in a net gain of $3.44 X 31 shares = $106.64 for a 10.7% net gain on a $991.69 investment.
Thus, Ethan Allen Interiors Inc shows a possible 10.7% net gain including a 5.47% forward-looking dividend yield.
Over the next year at this time, a $1000 investment in ETH could generate $54.70 in cash dividends. And a single share bought at yesterday's closing price was about $32.00! So, if ETH is your kind of furniture, fixtures, and appliances investment, Ethan is showing share price well below the expected annual dividend income from $1,000 invested. This suggests now could be a good time to add Ethan Allen Interiors Inc to your holdings.
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 worth.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
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