Williams-Sonoma Inc WSM

Morningstar Rating
$228.38 +5.54 (2.49%)
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Company Report

Despite Macro Uncertainty, Williams-Sonoma Wins Sales Growth Via Continued Product Innovation

Williams-Sonoma has carved out a modest position in what it estimates is a $750 billion global home category and an $80 billion US business-to-business industry. It has historically launched most of its brands organically in underserved segments, which has supported some brand awareness, facilitating sales and EPS 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 back to its catalog days. This should help Williams-Sonoma maintain or improve its market share as it attempts to grow its emerging brands.

Price vs Fair Value

WSM is trading at a LOCK|hb#Q^% premium.
Price
$222.84
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Less discretionary categories, such as cookware and small appliances, offer some resiliency amid macroeconomic cyclicality. Trade and contract B2B customers can offer a steadier source of revenue.

Bears

Port congestion and freight pricing could increase, leading to higher costs from supply chain remediation.

News

Trading Information

Previous Close Price
$222.84
Day Range
$221.81231.97
52-Week Range
$165.51244.65
Bid/Ask
$214.61 / $228.32
Shares Outstanding
117.75M
Market Cap
$26.89B
Volume/Avg
828,467 / 1M

Key Statistics

Price/Earnings (Normalized)
25.43
Price/Sales
3.53
Dividend Yield (Trailing)
1.23%
Dividend Yield (Forward)
1.36%
Total Yield
5.24%

Company Profile

With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the nearly $300 billion domestic home category and $450 billion international home market, focused on expanding its exposure in the B2B ($80 billion total addressable market), marketplace, and franchise areas. Namesake Williams-Sonoma (153 stores) offers high-end cooking essentials, while Pottery Barn (180) provides casual home accessories. West Elm (116) is an emerging concept for young professionals, and Rejuvenation (13) offers lighting and house parts. Brand extensions include Pottery Barn Kids and Pottery Barn Teen (43) as well as Mark & Graham and GreenRow. 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
19,800

Competitors

Valuation

Metric
WSM
RH
SHW
Price/Earnings (Normalized)
25.4345.2029.09
Price/Book Value
14.3863.1718.50
Price/Sales
3.531.083.46
Price/Cash Flow
16.187.5619.84
Price/Earnings
WSM
RH
SHW

Financial Strength

Metric
WSM
RH
SHW
Quick Ratio
0.450.200.45
Current Ratio
1.331.130.86
Interest Coverage
1.647.81
Quick Ratio
WSM
RH
SHW

Profitability

Metric
WSM
RH
SHW
Return on Assets (Normalized)
22.57%1.77%10.45%
Return on Equity (Normalized)
57.16%61.05%
Return on Invested Capital (Normalized)
32.99%6.26%17.39%
Return on Assets
WSM
RH
SHW

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LOCK|%$^!BLLLOCK|c>!$4B
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LOCK|G?Hf^@^BLOCK|v!$4B

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