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WSM

Williams-SonomaNYSE:WSM Stock Report

Last Price

US$142.58

Market Cap

US$10.4b

7D

-3.0%

1Y

7.8%

Updated

21 Jan, 2022

Data

Company Financials +
WSM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

WSM Stock Overview

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home.

Williams-Sonoma Competitors

RH

NYSE:RH

US$8.4b

Sleep Number

NasdaqGS:SNBR

US$1.6b

Bed Bath & Beyond

NasdaqGS:BBBY

US$1.2b

Haverty Furniture Companies

NYSE:HVT

US$502.2m

Price History & Performance

Summary of all time highs, changes and price drops for Williams-Sonoma
Historical stock prices
Current Share PriceUS$142.58
52 Week HighUS$223.32
52 Week LowUS$118.07
Beta1.51
1 Month Change-17.05%
3 Month Change-24.79%
1 Year Change7.75%
3 Year Change169.43%
5 Year Change200.17%
Change since IPO6,774.39%

Recent News & Updates

Jan 18
At US$147, Is It Time To Put Williams-Sonoma, Inc. (NYSE:WSM) On Your Watch List?

At US$147, Is It Time To Put Williams-Sonoma, Inc. (NYSE:WSM) On Your Watch List?

Today we're going to take a look at the well-established Williams-Sonoma, Inc. ( NYSE:WSM ). The company's stock...

Jan 17

Williams-Sonoma - Thesis Shift To 'Buy'

I got some amount of understandable pushback for my "HOLD" thesis on WSM a few months back. However, as valuation often does, time proved it to be true. The company has significantly underperformed most any comparative index or stock, with shareholders losing almost 30% in less than 3 months. However what to some may look negative, may actually be a decent buying opportunity. Follow me as we revisit Williams Sonoma.

Jan 08

Williams-Sonoma: Squeezing Lemons And Shorts

Despite a 23% short interest in early 2018 and the ensuing coronavirus pandemic, the common shares of home furnishing retail stalwart Williams-Sonoma squeezed a three-bagger return for the bulls. In another defiance of the retail apocalyptic bears, the company increased e-commerce channel sales from 50% to 70% of revenues during the same period. At present, the stock's averaged combined yields on earnings, free cash flow, and dividends are trouncing the Ten Year Treasury benchmark. Fundamentals, valuation, risks, and the upside remain compelling, although potential downside catalysts are noteworthy. Nonetheless, Williams-Sonoma is a quality enterprise whose current stock price appears at a reasonable level.

Jan 05
Does Williams-Sonoma (NYSE:WSM) Deserve A Spot On Your Watchlist?

Does Williams-Sonoma (NYSE:WSM) Deserve A Spot On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

WSMUS Specialty RetailUS Market
7D-3.0%-6.8%-6.1%
1Y7.8%-8.4%4.2%

Return vs Industry: WSM exceeded the US Specialty Retail industry which returned -6% over the past year.

Return vs Market: WSM exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is WSM's price volatile compared to industry and market?
WSM volatility
WSM Average Weekly Movement5.6%
Specialty Retail Industry Average Movement7.5%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: WSM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WSM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195616,600Laura Alberhttps://www.williams-sonomainc.com

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma brand, as well as home furnishings and decorative accessories under the Williams Sonoma Home brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids' furniture and accessories, such as bedding, bath accessories, cribs, classic toys, and luggage and lunch bags under the Pottery Barn Kids brand; and a line of furniture and accessories for teen bedrooms, study and lounge spaces, and college dorm rooms under the Pottery Barn Teen brand.

Williams-Sonoma Fundamentals Summary

How do Williams-Sonoma's earnings and revenue compare to its market cap?
WSM fundamental statistics
Market CapUS$10.40b
Earnings (TTM)US$1.03b
Revenue (TTM)US$8.04b

10.1x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WSM income statement (TTM)
RevenueUS$8.04b
Cost of RevenueUS$4.57b
Gross ProfitUS$3.47b
ExpensesUS$2.44b
EarningsUS$1.03b

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)14.15
Gross Margin43.20%
Net Profit Margin12.84%
Debt/Equity Ratio0%

How did WSM perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

18%

Payout Ratio

Valuation

Is Williams-Sonoma undervalued compared to its fair value and its price relative to the market?

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WSM ($142.58) is trading below our estimate of fair value ($233.43)

Significantly Below Fair Value: WSM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WSM is poor value based on its PE Ratio (10.1x) compared to the US Specialty Retail industry average (7.9x).

PE vs Market: WSM is good value based on its PE Ratio (10.1x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: WSM is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: WSM is overvalued based on its PB Ratio (6.7x) compared to the US Specialty Retail industry average (2.5x).


Future Growth

How is Williams-Sonoma forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSM's forecast earnings growth (4.4% per year) is above the savings rate (2%).

Earnings vs Market: WSM's earnings (4.4% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: WSM's earnings are forecast to grow, but not significantly.

Revenue vs Market: WSM's revenue (4.4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: WSM's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WSM's Return on Equity is forecast to be very high in 3 years time (43.6%).


Past Performance

How has Williams-Sonoma performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSM has high quality earnings.

Growing Profit Margin: WSM's current net profit margins (12.8%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: WSM's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: WSM's earnings growth over the past year (92.5%) exceeds its 5-year average (27.8% per year).

Earnings vs Industry: WSM earnings growth over the past year (92.5%) underperformed the Specialty Retail industry 151.5%.


Return on Equity

High ROE: WSM's Return on Equity (66.9%) is considered outstanding.


Financial Health

How is Williams-Sonoma's financial position?


Financial Position Analysis

Short Term Liabilities: WSM's short term assets ($2.2B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: WSM's short term assets ($2.2B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: WSM is debt free.

Reducing Debt: WSM has no debt compared to 5 years ago when its debt to equity ratio was 10.5%.

Debt Coverage: WSM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WSM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Williams-Sonoma current dividend yield, its reliability and sustainability?

1.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WSM's dividend (1.99%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: WSM's dividend (1.99%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: WSM's dividends per share have been stable in the past 10 years.

Growing Dividend: WSM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.6%), WSM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WSM's dividends in 3 years are forecast to be well covered by earnings (21.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure


CEO

Laura Alber (52 yo)

15.5yrs

Tenure

US$24,133,526

Compensation

Ms. Laura J. Alber serves as Director at salesforce.com, inc. since November 30, 2021. She has been the Chief Executive Officer at Williams-sonoma Inc. since May 26, 2010 and has been its President since J...


CEO Compensation Analysis

Compensation vs Market: Laura's total compensation ($USD24.13M) is above average for companies of similar size in the US market ($USD11.42M).

Compensation vs Earnings: Laura's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WSM's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: WSM's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Williams-Sonoma, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Williams-Sonoma, Inc.
  • Ticker: WSM
  • Exchange: NYSE
  • Founded: 1956
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Implied Market Cap: US$10.402b
  • Shares outstanding: 72.95m
  • Website: https://www.williams-sonomainc.com

Number of Employees


Location

  • Williams-Sonoma, Inc.
  • 3250 Van Ness Avenue
  • San Francisco
  • California
  • 94109
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:37
End of Day Share Price2022/01/21 00:00
Earnings2021/10/31
Annual Earnings2021/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.