NYSE:WSM

Stock Analysis Report

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Executive Summary

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

Rewards

PE ratio (16.1x) is below the US market (19.7x)

Earnings grew by 55.7% over the past year

Pays a reliable dividend of 1.89%

Risk Analysis

No risks detected for WSM from our risk checks.


Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Williams-Sonoma's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

10.9%

WSM

2.0%

US Specialty Retail

2.1%

US Market


1 Year Return

58.4%

WSM

21.4%

US Specialty Retail

19.8%

US Market

Return vs Industry: WSM exceeded the US Specialty Retail industry which returned 21.2% over the past year.

Return vs Market: WSM exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

WSMIndustryMarket
7 Day10.9%2.0%2.1%
30 Day16.5%7.2%8.1%
90 Day25.1%6.5%6.0%
1 Year62.6%58.4%22.5%21.4%22.5%19.8%
3 Year138.9%118.9%78.3%70.8%46.5%36.8%
5 Year105.4%77.5%83.1%69.2%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Williams-Sonoma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

16.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WSM ($112.01) is trading above our estimate of fair value ($102.72)

Significantly Below Fair Value: WSM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WSM is good value based on its PE Ratio (16.1x) compared to the US Specialty Retail industry average (18.7x).

PE vs Market: WSM is good value based on its PE Ratio (16.1x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: WSM is poor value based on its PEG Ratio (20.7x)


Price to Book Ratio

PB vs Industry: WSM is overvalued based on its PB Ratio (6.1x) compared to the US Specialty Retail industry average (2.3x).


Next Steps

Future Growth

How is Williams-Sonoma forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSM's forecast earnings growth (0.8% per year) is below the savings rate (2.2%).

Earnings vs Market: WSM's earnings (0.8% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: WSM's revenue (2.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: WSM's revenue (2.6% 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 high in 3 years time (28.3%)


Next Steps

Past Performance

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

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSM has high quality earnings.

Growing Profit Margin: WSM's current net profit margins (8.5%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: WSM's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: WSM's earnings growth over the past year (55.7%) exceeds its 5-year average (7.1% per year).

Earnings vs Industry: WSM earnings growth over the past year (55.7%) exceeded the Specialty Retail industry 14.3%.


Return on Equity

High ROE: WSM's Return on Equity (38.4%) is considered high.


Next Steps

Financial Health

How is Williams-Sonoma's financial position?


Financial Position Analysis

Short Term Liabilities: WSM's short term assets ($2.1B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: WSM's short term assets ($2.1B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: WSM's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: WSM's debt to equity ratio has increased from 17.5% to 21.3% over the past 5 years.

Debt Coverage: WSM's debt is well covered by operating cash flow (415.8%).

Interest Coverage: WSM's interest payments on its debt are well covered by EBIT (48.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WSM's dividend (1.89%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: WSM's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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 reasonably low payout ratio (28.4%), 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 (29.9% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Laura Alber (51 yo)

10.5yrs

Tenure

US$17,028,444

Compensation

Ms. Laura J. Alber has been the Chief Executive Officer at Williams-sonoma Inc. since May 26, 2010 and has been its President since July 2006. Ms. Alber served as the President of Pottery Barn Brands, a su...


CEO Compensation Analysis

Compensation vs Market: Laura's total compensation ($USD17.03M) is above average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: Laura's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Laura Alber
President10.5yrsUS$17.03m0.58%
$ 50.1m
Julie Whalen
Executive VP & CFO8.33yrsUS$4.12m0.076%
$ 6.5m
Marta Benson
President of Pottery Barn Brandno dataUS$4.59m0.032%
$ 2.8m
Alex Bellos
President of West Elm Brandno dataUS$5.45m0.025%
$ 2.2m
Ryan Ross
President of the Williams Sonoma Brand3.33yrsUS$5.06m0.014%
$ 1.2m
Dean Miller
Executive VP & COO6.33yrsUS$1.46mno data
Brian Yee
Senior VP of Corporate Finance & Treasurerno datano datano data
Yasir Anwar
Chief Technology Officer2.75yrsno datano data
Elise Wang
Vice President of Investor Relationsno datano datano data
David King
Executive VP9.83yrsno data0.022%
$ 1.9m
Felix Carbullido
Executive VP & Chief Marketing Officer6.33yrsno datano data
Monica Bhargava
Executive Vice President of Product Development8.67yrsno datano data

7.3yrs

Average Tenure

51yo

Average Age

Experienced Management: WSM's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Laura Alber
President10.5yrsUS$17.03m0.58%
$ 50.1m
Frits van Paasschen
Independent Director3.5yrsUS$246.33k0.012%
$ 1.0m
Anne Mulcahy
Independent Director2.08yrsUS$253.27k0.0059%
$ 503.4k
Sabrina Simmons
Independent Director5.83yrsUS$296.41k0.016%
$ 1.4m
Scott Dahnke
Independent Director1.58yrsUS$268.53k0.030%
$ 2.6m
William Ready
Independent Director0.67yrno data0.00086%
$ 73.9k

2.8yrs

Average Tenure

56yo

Average Age

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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Williams-Sonoma, Inc.
  • Ticker: WSM
  • Exchange: NYSE
  • Founded: 1956
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: US$8.591b
  • Shares outstanding: 76.70m
  • Website: https://www.williams-sonomainc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WSMNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1983
WM1DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1983
WSM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1983
0LXCLSE (London Stock Exchange)YesCommon StockGBUSDJul 1983

Biography

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, tableto...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:03
End of Day Share Price2020/11/25 00:00
Earnings2020/11/01
Annual Earnings2020/02/02


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.