Ethan Allen Interiors, Inc. (NYSE:ETH)
CAPS Rating:
The Company is a manufacturer and retailer of quality home furnishings and accessories, offering a full complement of home decorating and design solutions.
The Company is a manufacturer and retailer of quality home furnishings and accessories, offering a full complement of home decorating and design solutions.
Recs
The dividend cut was to make sure they did not tap their revolving credit line (Which they still haven't touched). Well-run, veritcally integrated company in a beaten-up industry with a huge moat and lots of liquidity. Ethan Allen is one of the few recognizable names in the furnature industry and its name means quality and resale value.
Price-to-sales: 0.28x
Net profit margin around 4%
Operating margin and gross margins at the top of their subindustry.
The dividend is nice for DRIP while you wait for the stock to go back up!
paying a dividend while youre not close to profitable. isnt that trouble?