Daily Stock Analysis: Ethan Allen

Ethan Allen Interiors Inc, ticker (ETD), is a mid-cap Connecticut-based furnishings, fixtures and appliances company at work in the consumer cyclical business sector. It is, as I said, the fourth of five consumer cyclical candidates vying to be the fourth selection for my Viking folio. This is my very first report on ETD for my Viking portfolio I have also discussed it for previous portfolios.

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, 2022, it operated a network of approximately 141 design centers.

Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.

Three key data points gauge

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.

ETD Price

Ethan Allen’s price per share was $22.32 at Wednesday’s market close. In the past year, ETD’s share price fell by $1.47 or about 6%.

If Ethan Allen’’s stock trades in the range of $18.00 to $27.00 this next year, its recent $22.32 per share price might reach $25.00 by next year. My upside increase estimate of $2.68 mirrors the median of estimated price upsides from three brokers tracking ETD.

ETD Dividends

Ethan Allen’s most recently declared quarterly dividend of $0.32 per share equals $1.28 annually and  casts a yield of 5.73%.

ETD Returns

Adding the $1.28 annual ETD dividend to my one-year price upside estimate of $2.68 shows a $3.96 potential gross gain per share.

At today’s $22.32 closing price, a little over $1000 would buy 45 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.22 per share.

Subtract that maybe $0.22 brokerage cost from my estimated $3.96 gross gain per share results in a net gain of $3.74 X 45 shares = $168.30 for a 16.8% net gain including a 5.57% annual yield.

In a year our $1K investment in shares of Ethan Allen Interiors Inc could generate $57.30 in cash dividends. Of course, a single share of ETD stock at today's $22.32 share price is more than 2.5 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is really a good time to buy ETD shares based on their dividends for the year 2022. The dividend from $1K invested is 2.57 times more than ETD’s single share price. Consider yourself alerted. Now IS the time for Ethan Allen Interiors Inc.

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 market value.


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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 solicitation, ...

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