Ethan Allen InteriorsETD -0.82%71 Return-on-Tangible-Equity is 5.51% as of Mar. 2026, which is 59% below its 10-year median of 13.29. GuruFocus rates ETD with a GF Score™ of 71/100 and a GF Value™ of $24.64 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 420 Furnishings, Fixtures & Appliances companies, Ethan Allen Interiors ranks better than 67.38% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ethan Allen Interiors's annualized net income for the quarter that ended in Mar. 2026 was $23.7 Mil. Ethan Allen Interiors's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $430.9 Mil. Therefore, Ethan Allen Interiors's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.51%.
The historical rank and industry rank for Ethan Allen Interiors's Return-on-Tangible-Equity or its related term are showing as below:
ETD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.96 Med: 13.29 Max: 30.9
Current: 9.34
During the past 13 years, Ethan Allen Interiors's highest Return-on-Tangible-Equity was 30.90%. The lowest was 2.96%. And the median was 13.29%.
ETD's Return-on-Tangible-Equity is ranked better than 67.38% of 420
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 5.075
vs ETD: 9.34
Ethan Allen Interiors (NYSE:ETD) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ethan Allen Interiors Return-on-Tangible-Equity Related Terms
Ethan Allen Interiors Return-on-Tangible-Equity Historical Data
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The historical data trend for Ethan Allen Interiors's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ethan Allen Interiors Return-on-Tangible-Equity Chart
ETD vs XMAX, FLXS, HBB: Return-on-Tangible-Equity Comparison
For the Furnishings, Fixtures & Appliances subindustry, Ethan Allen Interiors's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ethan Allen Interiors Return-on-Tangible-Equity vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Ethan Allen Interiors's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ethan Allen Interiors's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.51% mean?
Ethan Allen Interiors (ETD) has a Return-on-Tangible-Equity of 5.51% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ethan Allen Interiors and its competitors. This is 59% below median its historical median of 13.29. Over the past decade, Ethan Allen Interiors' Return-on-Tangible-Equity has ranged from 2.96 to 30.90. According to the industry distribution chart, Ethan Allen Interiors ranks #137 out of 420 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 32.6%.
Is Ethan Allen Interiors' Return-on-Tangible-Equity too high?
Ethan Allen Interiors' current Return-on-Tangible-Equity of 5.51% is 59% below median its 10-year median of 13.29. Over the past 10 years, this metric has ranged from a low of 2.96 to a high of 30.90. The Furnishings, Fixtures & Appliances industry median Return-on-Tangible-Equity is 5.08. Ethan Allen Interiors' value of 5.51% is 8.6% above this industry median. Based on the distribution chart, Ethan Allen Interiors ranks #137 out of 420 companies in the Furnishings, Fixtures & Appliances industry, which is above the industry midpoint. Overall, Ethan Allen Interiors has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ethan Allen Interiors' Return-on-Tangible-Equity compare to XMAX and FLXS?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Ethan Allen Interiors ranks #137 out of 420 companies for Return-on-Tangible-Equity. This puts Ethan Allen Interiors in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.08. Ethan Allen Interiors' value of 5.51% is 8.6% above this benchmark. Historically, Ethan Allen Interiors' own Return-on-Tangible-Equity has ranged from 2.96 to 30.90 over the past decade. While the company's 10-year median is 13.29 vs. the industry median of 5.08, Ethan Allen Interiors has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Furnishings, Fixtures & Appliances company?
The median Return-on-Tangible-Equity among Furnishings, Fixtures & Appliances companies is 5.08, based on 420 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ethan Allen Interiors's current Return-on-Tangible-Equity of 5.51% is 8.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ethan Allen Interiors and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Return-on-Tangible-Equity is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ethan Allen Interiors's current Return-on-Tangible-Equity is 5.51%, which is 59% below median its own 10-year median of 13.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ethan Allen Interiors stock overvalued right now?
Based on GuruFocus' analysis, Ethan Allen Interiors (ETD) is currently considered Modestly Undervalued. The stock's GF Value™ is $24.64, compared to a current price of $21.69 — trading 12% below its estimated fair value. The current Return-on-Tangible-Equity is 5.51%, which is 59% below median its 10-year median of 13.29 and 8.6% above the Furnishings, Fixtures & Appliances industry median of 5.08. Ethan Allen Interiors' overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ethan Allen Interiors (ETD), the current Return-on-Tangible-Equity is 5.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ethan Allen Interiors (ETD) Overvalued in 2026?
Based on GuruFocus' analysis, Ethan Allen Interiors stock appears to be undervalued.
The current stock price of $21.69 is trading 12% below its estimated GF Value™ of $24.64.
GuruFocus considers Ethan Allen Interiors to be Modestly Undervalued.
Key valuation signals for ETD:
Return-on-Tangible-Equity: 5.51% (59% below median its 10-year median of 13.29)
GF Value™: $24.64 vs. price of $21.69 (12% below fair value)
Industry Position: 8.6% above the Furnishings, Fixtures & Appliances median (#137 of 420)
No single metric tells the full story. See the ETD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ethan Allen Interiors Inc through its subsidiaries, operates as an interior design company, and a manufacturer and retailer in the home furnishings marketplace. Its product offerings include fabric chairs, beds, wallpapers, desks, and dining tables among others. The company's reportable segments are; Wholesale and Retail. The Wholesale segment is principally involved in the development of the Ethan Allen brand and encompasses all aspects of design, manufacturing, sourcing, marketing, sale, and distribution of home furnishings and accents. The Retail segment which generates maximum revenue, sells home furnishings and accents to clients through company-operated design centers. Geographically, it derives key revenue from the United States and the rest from other regions.
71GF Score
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