Williams-Sonoma Inc WSM

Morningstar Rating
$152.52 +1.48 (0.98%)
View Full Chart

Company Report

Williams-Sonoma Profitability Shines Despite Noisy Macro Environment

Williams-Sonoma has carved out a modest position in what it estimates is a $750 billion global home category and an $80 billion US business-to-business industry. It has historically launched most of its brands organically in underserved segments, which has supported some brand awareness, facilitating top- and bottom-line growth. Its ability to drive business relies on customer loyalty and smart marketing and merchandising, and the firm has access to a lengthy history of customer analytics stemming from its catalog days. This should help Williams-Sonoma maintain its market share as it attempts to enter adjacent categories.

Price vs Fair Value

WSM is trading at a 449% premium.
Price
$152.52
Fair Value
$664.00
Uncertainty
High
1-Star Price
$787.18
5-Star Price
$54.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Less discretionary categories such as cookware and small appliances offer some resiliency amid macroeconomic cyclicality. Trade and contract B2B customers tend to offer a more steady source of revenue.

Bears

Supply chain remediation from prior port congestion and lower freight pricing could reverse, increasing expenses.

News

Trading Information

Previous Close Price
$151.04
Day Range
$149.63153.28
52-Week Range
$71.56174.26
Bid/Ask
$152.30 / $153.35
Market Cap
$19.27 Bil
Volume/Avg
886,549 / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
18.84
Price/Sales
2.62
Dividend Yield (Trailing)
1.33%
Dividend Yield (Forward)
1.49%
Total Yield
2.25%

Company Profile

With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the $300 billion domestic home category and $450 billion international home market, focused on expanding its exposure in the B2B ($80 billion total addressable market), marketplace, and franchise areas. Namesake Williams-Sonoma (156 stores) offers high-end cooking essentials, while Pottery Barn (184) provides casual home accessories. West Elm (121) is an emerging concept for young professionals, and Rejuvenation (11) offers lighting and house parts. Brand extensions include Pottery Barn Kids and PBteen (45) as well as Mark & Graham and Greenrow. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
Sector
Consumer Cyclical
Industry
Specialty Retail
Stock Style Box
Mid Core
Total Number of Employees
19,300

Competitors

Valuation

Metric
WSM
RH
W
Price/Earnings (Normalized)
18.84210.33
Price/Book Value
8.66
Price/Sales
2.622.190.53
Price/Cash Flow
12.1219.6420.97
Price/Earnings
WSM
RH
W

Financial Strength

Metric
WSM
RH
W
Quick Ratio
0.780.180.68
Current Ratio
1.561.210.83
Interest Coverage
1.10−35.29
Quick Ratio
WSM
RH
W

Profitability

Metric
WSM
RH
W
Return on Assets (Normalized)
23.02%0.77%−0.21%
Return on Equity (Normalized)
57.65%
Return on Invested Capital (Normalized)
33.13%6.21%0.49%
Return on Assets
WSM
RH
W

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