NYSE:WSM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid 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


Market Performance


7 Day Return

0.8%

NYSE:WSM

-0.7%

US Specialty Retail

1.1%

US Market


1 Year Return

0.9%

NYSE:WSM

-4.0%

US Specialty Retail

2.1%

US Market

WSM outperformed the Specialty Retail industry which returned -3.5% over the past year.

WSM underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

WSMIndustryMarket
7 Day0.8%-0.7%1.1%
30 Day6.4%8.3%3.7%
90 Day9.1%3.9%2.3%
1 Year4.1%0.9%-2.4%-4.0%4.4%2.1%
3 Year47.7%34.6%35.8%28.8%47.0%37.4%
5 Year14.2%-0.3%54.3%40.6%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

19%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Williams-Sonoma's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Williams-Sonoma's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Williams-Sonoma is good value based on earnings compared to the US Specialty Retail industry average.

Williams-Sonoma is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Williams-Sonoma is poor value based on expected growth next year.


Price Based on Value of Assets

Williams-Sonoma is overvalued based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

How is Williams-Sonoma expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Williams-Sonoma's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Williams-Sonoma's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Williams-Sonoma's revenue growth is positive but not above the United States of America market average.

Williams-Sonoma's earnings growth is positive but not above the United States of America market average.

Williams-Sonoma's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Williams-Sonoma is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

0.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Williams-Sonoma's year on year earnings growth rate has been positive over the past 5 years.

Williams-Sonoma's 1-year earnings growth exceeds its 5-year average (33.1% vs 0.5%)

Williams-Sonoma's earnings growth has exceeded the US Specialty Retail industry average in the past year (33.1% vs 8.3%).


Return on Equity

Williams-Sonoma has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Williams-Sonoma used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Williams-Sonoma's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Williams-Sonoma's financial position?


Financial Position Analysis

Williams-Sonoma is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Williams-Sonoma's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Williams-Sonoma's level of debt (32.1%) compared to net worth is satisfactory (less than 40%).

Williams-Sonoma had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Debt is well covered by operating cash flow (122.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 52.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.3x debt.


Next Steps

Dividend

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

2.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Williams-Sonoma's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Williams-Sonoma's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

What is the CEO of Williams-Sonoma's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average management tenure


CEO

Laura Alber (50yo)

9.3yrs

Tenure

US$27,254,166

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

Laura's remuneration is higher than average for companies of similar size in United States of America.

Laura's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.2yrs

Average Tenure

50yo

Average Age

The average tenure for the Williams-Sonoma management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.3yrs

Average Tenure

56yo

Average Age

The average tenure for the Williams-Sonoma board of directors is less than 3 years, this suggests a new board.


Insider Trading

Williams-Sonoma individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$314,50510 Sep 19
Alex Bellos
EntityIndividual
Role
Senior Key Executive
President of West Elm Brand
Shares4,820
Max PriceUS$65.25
SellUS$308,00020 Jun 19
Marta Benson
EntityIndividual
Role
Senior Key Executive
President of Pottery Barn Brand
Shares5,000
Max PriceUS$61.60
SellUS$105,14004 Jun 19
Sabrina Simmons
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,750
Max PriceUS$60.08

Ownership Breakdown


Management Team

  • Laura Alber (50yo)

    CEO, President & Director

    • Tenure: 9.3yrs
    • Compensation: US$27.25m
  • Dean Miller (56yo)

    Executive VP & COO

    • Tenure: 5.2yrs
    • Compensation: US$1.46m
  • Marta Benson (56yo)

    President of Pottery Barn Brand

    • Tenure: 0yrs
    • Compensation: US$4.67m
  • Felix Carbullido (54yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 5.2yrs
  • David King (50yo)

    Executive VP

    • Tenure: 8.7yrs
  • Julie Whalen (48yo)

    Executive VP & CFO

    • Tenure: 7.2yrs
    • Compensation: US$4.08m
  • Linda Lewis

    Chief Talent Officer & Executive VP

    • Tenure: 7.7yrs
  • Yasir Anwar

    Chief Technology Officer

    • Tenure: 1.6yrs
  • Alex Bellos (34yo)

    President of West Elm Brand

    • Tenure: 0yrs
    • Compensation: US$4.25m
  • Elise Wang

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Adrian D. Bellamy (77yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: US$730.41k
  • Frits van Paasschen (58yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$246.01k
  • Anne Mulcahy (67yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$118.47k
  • Bob Lord (56yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$250.91k
  • Sabrina Simmons (56yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$299.86k
  • Laura Alber (50yo)

    CEO, President & Director

    • Tenure: 9.3yrs
    • Compensation: US$27.25m
  • Scott Dahnke (54yo)

    Independent Director

    • Tenure: 0.4yrs
  • Grace Puma (56yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$249.13k

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$5.256b
  • Shares outstanding: 78.02m
  • 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 a multi-channel specialty retailer of various products for home. The company operates through two segments, E-commerce and Retail. It offers cooking, dining, and entertain ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:41
End of Day Share Price2019/09/16 00:00
Earnings2019/08/04
Annual Earnings2019/02/03


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.