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Ethan Allen is a leading interior design company, manufacturer and retailer in the home furnishings marketplace. We are a global luxury home fashion brand that is vertically integrated from product design through home delivery, which offers our customers stylish product offerings, artisanal quality, and personalized service.
10.09% operating margin is respectable but not wide. ROIC at 7.31%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 4.9% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 29% versus the prior year, cash generation momentum has weakened.
Profitability & Returns
Revenue (FY)
$615M
▼ -4.9% YoY
Net Income (TTM)
$40M
▼ -19.1% YoY
Op. Margin
10.09%
▼ -2.0pp YoY
ROIC
7.31%
▼ -2.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$45M
▼ -28.6% YoY
Op. Cash Flow (TTM)
$55M
▼ -23.1% YoY
Net Debt
$15M
Cash & Equiv.
$106M
5Y CAGR: -2.1%
5Y CAGR: +6.4%
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