Ethan Allen InteriorsETD +1.97%71 ROE % is 4.99% as of Mar. 2026, which is 59% below its 10-year median of 12.04. GuruFocus rates ETD with a GF Score™ of 71/100 and a GF Value™ of $24.66 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 428 Furnishings, Fixtures & Appliances companies, Ethan Allen Interiors ranks better than 68.46% on this metric.
Ethan Allen Interiors (NYSE:ETD) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Furnishings, Fixtures & Appliances subindustry, Ethan Allen Interiors's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Ethan Allen Interiors's ROE % distribution charts can be found below:
* The bar in red indicates where Ethan Allen Interiors's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Ethan Allen Interiors (ETD) has a ROE % of 4.99% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ethan Allen Interiors and its competitors. This is 59% below median its historical median of 12.04. Over the past decade, Ethan Allen Interiors' ROE % has ranged from 2.57 to 27.22. According to the industry distribution chart, Ethan Allen Interiors ranks #135 out of 428 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 31.5%.
Is Ethan Allen Interiors' ROE % too high?
Ethan Allen Interiors' current ROE % of 4.99% is 59% below median its 10-year median of 12.04. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 27.22. The Furnishings, Fixtures & Appliances industry median ROE % is 4.60. Ethan Allen Interiors' value of 4.99% is 8.5% above this industry median. Based on the distribution chart, Ethan Allen Interiors ranks #135 out of 428 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' ROE % compare to XMAX and AMWD?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Ethan Allen Interiors ranks #135 out of 428 companies for ROE %. This puts Ethan Allen Interiors in the upper half of its industry. The industry median ROE % is 4.60. Ethan Allen Interiors' value of 4.99% is 8.5% above this benchmark. Historically, Ethan Allen Interiors' own ROE % has ranged from 2.57 to 27.22 over the past decade. While the company's 10-year median is 12.04 vs. the industry median of 4.60, 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 ROE % for a Furnishings, Fixtures & Appliances company?
The median ROE % among Furnishings, Fixtures & Appliances companies is 4.60, based on 428 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ethan Allen Interiors's current ROE % of 4.99% is 8.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ethan Allen Interiors and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROE % is 4.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ethan Allen Interiors's current ROE % is 4.99%, which is 59% below median its own 10-year median of 12.04. 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 $24.66, compared to a current price of $22.41 — trading 9.1% below its estimated fair value. The current ROE % is 4.99%, which is 59% below median its 10-year median of 12.04 and 8.5% above the Furnishings, Fixtures & Appliances industry median of 4.60. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Ethan Allen Interiors (ETD), the current ROE % is 4.99% 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 $22.41 is trading 9.1% below its estimated GF Value™ of $24.66.
GuruFocus considers Ethan Allen Interiors to be Modestly Undervalued.
Key valuation signals for ETD:
ROE %: 4.99% (59% below median its 10-year median of 12.04)
GF Value™: $24.66 vs. price of $22.41 (9.1% below fair value)
Industry Position: 8.5% above the Furnishings, Fixtures & Appliances median (#135 of 428)
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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