Ethan Allen Interiors Inc (ETD) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Durable Goods, Textiles & Apparel · as of Sep 24, 2026
Ethan Allen Interiors Inc (ETD)
A forensic read on Ethan Allen Interiors Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
7.6
Distress distance
Clean
Earnings quality
4
Forensic signals
13.5
P / E (ttm)
8.5%
ROE
$530M
Market cap
5.21%
Dividend yield
-5.7%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Ethan Allen Interiors Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 7.6, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by shareholder returns.
What the filings flag
123% of FCF
FY2026
Shareholder returns.Returned $51M to shareholders (buybacks + dividends) in FY2026 — 123% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely. Counting the $1M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 126%.
235d
FY2025→FY2026
Inventory days.Days inventory outstanding moved from 213 to 235 FY2025→FY2026 (against cost of goods sold; inventory +5% vs -7% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
6.8%
FY2026
Return on invested capital.Return on invested capital is 6.8% in the latest fiscal year and slipping across FY2022–FY2026 from 26% — slightly below the ~9% cost of capital we hold this sector to — reinvestment to date is roughly a wash. The capital base behind it grew +26% across FY2022–FY2026, from $394M to $498M, while the return fell 19.4 points, so the dollars added over that window earned less than the 26% the older base was already earning.
0.0%/yr
FY2023–FY2026
Share count.Diluted share count changed 0% over the last 3 years to FY2026 (0.0%/yr). Roughly flat — buybacks ($5M) are about offsetting stock comp ($1M), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Latest Revenue$579.5M
Revenue Growth YoY-5.7%
Net Margin6.9%
Free Cash Flow$41.4M
Return on Equity8.5%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Ethan Allen Interiors Inc's actual 10-K/10-Q/8-K filings?