Stock fact sheet · data as of
Ethan Allen Interiors Inc. (ETD): fair value, margin of safety and Wheel Score
Consumer Cyclical · Furnishings, Fixtures & Appliances · United States · High Yield Income
Is ETD undervalued?
ETD closed at 20.06 on 16 Oct 2026, 28% below the GLS average fair value of 27.79 from 9 models (6 of them above the price). That is a moderate margin of safety: the stock passes the "below fair value" rule of the Sunday Scan, and the Wheel Score gives it 24 of the 25 Value points.
There is a wide gap between GLS Growth (4.63) and DDM (70.78). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files ETD under High Yield Income: a dividend yield above 4%.
Nine valuation models for ETD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 21.51 | +7% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 25.82 | +29% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 25.76 | +28% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 6.45 | -68% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 4.63 | -77% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 46.07 | +130% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 31.52 | +57% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 70.78 | +253% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 17.59 | -12% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 2.27 | -89% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 22.00 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Ethan Allen Interiors Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.1/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 6.7%, ROE 8.5%, ROA 5.5% - with debt at 0.26 times equity and a free-cash-flow yield of 8.2%.
The dividend yield is high at 23.98% (payout ratio 116%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Upholstery Furniture 48%, Case Goods 29%, Accent 19% (quarter Q1 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 6.7% |
|---|---|---|---|
| GLS Moat | 3.1 / 10 | ROE | 8.5% |
| Debt / equity | 0.26 | ROA | 5.5% |
| Free-cash-flow yield | 8.2% | Payout ratio | 116% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 75: Good
With a Wheel Score of 75 - the Good band - Ethan Allen Interiors Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 24/25, Health 16/20, Moat 5/15, Premium 20/20, Stability 11/20; Moat (5/15) scores lowest.
Implied volatility is 47% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 4,694 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 430k shares a day on a market cap of $506M, with a beta of 1.06; the Stability part of the Wheel Score gives that 11 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 24 / 25 | 28% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 5 / 15 | moat 3.1/10 | |
| Premium | 20 / 20 | implied volatility 47% | |
| Stability | 11 / 20 | 430k shares/day, $506M cap, beta 1.06 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Ethan Allen Interiors Inc. reports earnings on 28 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Furnishings, Fixtures & Appliances
The 12 companies below are the closest to Ethan Allen Interiors Inc. by market cap within the Furnishings, Fixtures & Appliances industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| XMAX XMAX, Inc. | 8.42 | 3.67 | -130% | 39Weak | $546M |
| FLXS Flexsteel Industries, Inc. | 86.77 | 175.71 | +51% | 39No options | $465M |
| HBB Hamilton Beach Brands Holding Company | 34.31 | 102.36 | +66% | 74Good | $461M |
| LOVE The Lovesac Company | 14.75 | 32.06 | +54% | 66Good | $213M |
| LZB La-Z-Boy Incorporated | 30.46 | 35.65 | +15% | 74Good | $1.2B |
| LCUT Lifetime Brands, Inc. | 8.79 | 14.62 | +40% | 63Fair | $202M |
| BSET Bassett Furniture Industries, Incorporated | 21.44 | 12.69 | -69% | 44Weak | $185M |
| MBC MasterBrand, Inc. | 6.84 | 15.05 | +55% | 45Weak | $1.4B |
| MLKN MillerKnoll, Inc. | 21.68 | 38.02 | +43% | 78Good | $1.5B |
| WHR Whirlpool Corporation | 27.63 | 59.54 | +54% | 74Good | $1.8B |
| HOFT Hooker Furnishings Corporation | 12.77 | 15.89 | +20% | 45Weak | $137M |
| COOK Traeger, Inc. | 46.04 | 435.57 | +89% | 39No options | $128M |
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Start free See the Sunday ScanQuestions about ETD
Is ETD undervalued right now?
By the GLS models, moderately: at 20.06 the stock trades 28% below the average fair value of 27.79 (data as of 16 Oct 2026).
What is the Wheel Score of ETD and what does it mean?
ETD scores 75 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for ETD?
27.79 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Ethan Allen Interiors Inc. report earnings next?
The next earnings report is due on 28 Oct 2026 (after the close), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ETD have listed options, and how liquid are they?
Yes. The nightly snapshot found 84 listed contracts with 4,694 open interest across all expiries and implied volatility of 47% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.