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Williams-Sonoma Inc WSM

Morningstar Rating
$236.64 +1.11 (0.47%)
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Company Report

Although a Weak Consumer Weighs On Williams-Sonoma Sales, Profitability Should Remain Healthy

Williams-Sonoma has carved out a modest position in the $750 billion global home category and the $80 billion U.S. business-to-business industry, according to the firm. 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 15% premium.
Price
$236.64
Fair Value
$486.00
Uncertainty
High
1-Star Price
$187.67
5-Star Price
$257.00
Economic Moat
Ljq
Capital Allocation
Znpklflw

Bulls Say, Bears Say

Bulls

Less discretionary categories such as cookware and small appliances offer some resiliency amid macroeconomic cyclicality. Registries in categories such as wedding and baby offer a steady source of customers.

Bears

Supply chain remediation from prior port congestion and rolling lockdowns in China could reverse, agitating expenses.

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News

Trading Information

Previous Close Price
$235.53
Day Range
$233.86237.46
52-Week Range
$109.44237.46
Bid/Ask
$235.38 / $237.20
Market Cap
$15.18 Bil
Volume/Avg
600,668 / 869,321

Key Statistics

Price/Earnings (Normalized)
15.62
Price/Sales
1.96
Dividend Yield (Trailing)
1.52%
Dividend Yield (Forward)
1.52%
Total Yield
3.84%

Company Profile

With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the $300 billion domestic home category, focused on expanding its exposure in the B2B, marketplace, and franchise areas. Namesake Williams-Sonoma (163 stores) offers high-end cooking essentials, while Pottery Barn (191) provides casual home accessories. Brand extensions include Pottery Barn Kids (46) and PBteen. West Elm (123) is an emerging concept for young professionals, and Rejuvenation (10) offers lighting and house parts. 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
21,100

Competitors

Valuation

Metric
WSM
SHW
RH
Price/Earnings (Normalized)
15.6232.2732.28
Price/Book Value
8.3722.96
Price/Sales
1.963.762.09
Price/Cash Flow
10.1923.3113.82
Price/Earnings
WSM
SHW
RH

Financial Strength

Metric
WSM
SHW
RH
Quick Ratio
0.460.410.52
Current Ratio
1.310.831.38
Interest Coverage
8.391.81
Quick Ratio
WSM
SHW
RH

Profitability

Metric
WSM
SHW
RH
Return on Assets (Normalized)
22.55%11.15%4.12%
Return on Equity (Normalized)
65.22%73.63%44.75%
Return on Invested Capital (Normalized)
34.21%18.14%8.75%
Return on Assets
WSM
SHW
RH
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Economic Moat
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TSCO
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ULTA
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GPC
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BBY
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DKS
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BBWI
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RH
RH Class APjfg$5.1 Bil

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