Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, furniture retailer Ethan Allen Interiors (NYSE: ETH) has received the dreaded one-star ranking

With that in mind, let's take a closer look at Ethan Allen's business and see what CAPS investors are saying about the stock right now.  

Ethan Allen facts

Headquarters (Founded)

Danbury, Conn. (1932)

Market Cap

$621.7 million

Industry

Home furnishings

Trailing-12-Month Revenue

$558.4 million

Management

CEO Farooq Kathwari (since 1988)
CFO David Callen (since 2007)

Trailing-12-Month Return on Equity

(25%)

Year-to-Date Return

61%

Cash/Debt

$76.1 million / $203.2 million

Competitors

Furniture Brands International (NYSE: FBN)
La-Z-Boy (NYSE: LZB)
Haverty Furniture (NYSE: HVT)

Well-Rated Retail Alternatives

Wal-Mart (NYSE: WMT)
Costco (Nasdaq: COST)
American Eagle Outfitters (NYSE: AEO)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. 

On CAPS, 58% of the 123 members who have rated Ethan Allen believe the stock will underperform the S&P 500 going forward. These bears include All-Stars 00100 and tenmiles, both of whom are ranked in the top 6% of our community. 

Early this month, 00100 brought Ethan Allen's frightening fundamentals to our community's attention:

Terrible cash flow. Nominal debt. Negative margins. Optimistic expectations. Largely empty parking lots.

In a pitch on the same day, tenmiles shared that bearish sentiment:

Company appears to benefiting from a modestly improving consumer trends, but I still believe its debt profile, while not in danger of a collapse, is clearly not strong. I'm not completely sold they have made the market transition to "modern chic" from stuffy old rich man's furniture. ... [T]echnicals alone suggest this one is a couple points ahead of itself near term.

What do you think about Ethan Allen, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!