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

7.4%

WSM

4.9%

US Specialty Retail

2.3%

US Market


1 Year Return

13.8%

WSM

4.4%

US Specialty Retail

5.6%

US Market

Return vs Industry: WSM exceeded the US Specialty Retail industry which returned 4.4% over the past year.

Return vs Market: WSM exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

WSMIndustryMarket
7 Day7.4%4.9%2.3%
30 Day3.7%2.1%-1.0%
90 Day0.4%3.3%-0.7%
1 Year17.4%13.8%6.2%4.4%7.9%5.6%
3 Year63.3%48.8%41.0%33.8%45.6%36.3%
5 Year22.3%6.8%59.5%45.4%65.8%47.6%

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?

16.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WSM ($69.85) is trading below our estimate of fair value ($83.87)

Significantly Undervalued: WSM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WSM is poor value based on its PE Ratio (15.7x) compared to the Specialty Retail industry average (15.1x).

PE vs Market: WSM is good value based on its PE Ratio (15.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WSM is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: WSM is overvalued based on its PB Ratio (4.9x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

How is Williams-Sonoma forecast to perform in the next 1 to 3 years based on estimates from 23 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 (2.7%).

Earnings vs Market: WSM's earnings (4.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: WSM's revenue (2.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WSM's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WSM's Return on Equity is forecast to be high in 3 years time (30.1%)


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

Earnings Trend: WSM's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: WSM's earnings growth over the past year (33.1%) exceeds its 5-year average (0.5% per year).

Earnings vs Industry: WSM earnings growth over the past year (33.1%) exceeded the Specialty Retail industry 8.3%.


Return on Equity

High ROE: WSM's Return on Equity (31.4%) is considered high.


Return on Assets

ROA vs Industry: WSM has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: WSM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Williams-Sonoma's financial position?


Financial Position Analysis

Short Term Liabilities: WSM's short term assets ($1.6B) exceeds its short term liabilities ($1.2B)

Long Term Liabilities: WSM's short term assets (1.6B) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: WSM's debt to equity ratio (32.1%) is considered satisfactory

Reducing Debt: WSM had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: WSM's debt is well covered by operating cash flow (122.1%).

Interest Coverage: WSM's interest payments on its debt are well covered by EBIT (52.6x coverage).


Balance Sheet

Inventory Level: WSM has a high level of physical assets or inventory.

Debt Coverage by Assets: WSM's debt is covered by short term assets (assets are 4.331210x debt).


Next Steps

Dividend

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

2.75%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Williams-Sonoma before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WSM's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WSM's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 (41%), 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 (38.5% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Laura Alber (50yo)

9.4yrs

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

Compensation vs. Market: Laura's total compensation ($USD27.25M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

7.3yrs

Average Tenure

50yo

Average Age

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


Board Age and Tenure

2.4yrs

Average Tenure

56yo

Average Age

Experienced Board: WSM's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: WSM 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: 9.4yrs
    • Compensation: US$27.25m
  • Dean Miller (56yo)

    Executive VP & COO

    • Tenure: 5.3yrs
    • 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: 5.3yrs
  • David King (50yo)

    Executive VP

    • Tenure: 8.8yrs
  • Julie Whalen (48yo)

    Executive VP & CFO

    • Tenure: 7.3yrs
    • Compensation: US$4.08m
  • Linda Lewis

    Chief Talent Officer & Executive VP

    • Tenure: 7.8yrs
  • Yasir Anwar

    Chief Technology Officer

    • Tenure: 1.7yrs
  • 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)

    Independent Chairman

    • Tenure: 9.4yrs
    • Compensation: US$730.41k
  • Frits van Paasschen (58yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$246.01k
  • Anne Mulcahy (67yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$118.47k
  • Bob Lord (56yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$250.91k
  • Sabrina Simmons (56yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$299.86k
  • Laura Alber (50yo)

    CEO, President & Director

    • Tenure: 9.4yrs
    • Compensation: US$27.25m
  • Scott Dahnke (54yo)

    Independent Director

    • Tenure: 0.5yrs
  • Grace Puma (56yo)

    Independent Director

    • Tenure: 2.4yrs
    • 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$5.450b
  • 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 Analysis2019/10/16 23:42
End of Day Share Price2019/10/16 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.