Now trading at a price of $137.85, Williams-Sonoma has moved -2.3% so far today.
Williams-Sonoma returned gains of 114.0% last year, with its stock price reaching a high of $174.25 and a low of $62.44. Over the same period, the stock outperformed the S&P 500 index by 87.8%. More recently, the company's 50-day average price was $147.48. Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. Based in San Francisco, CA, the Large-Cap Consumer Discretionary company has 10,700 full time employees. Williams-Sonoma has offered a 1.4% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 39.0%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,672 | $5,898 | $6,783 | $8,246 | $8,674 | $7,751 |
| Gross Margins | 37% | 36% | 39% | 44% | 42% | 43% |
| Net Margins | 6% | 6% | 10% | 14% | 13% | 12% |
| Net Income (M) | $334 | $356 | $681 | $1,126 | $1,128 | $950 |
| Net Interest Expense (M) | $11 | -$9 | -$16 | -$2 | $2 | $29 |
| Depreciation & Amort. (M) | $189 | $187 | $189 | $196 | $214 | $233 |
| Diluted Shares (M) | 79 | 79 | 76 | 68 | 65 | 65 |
| Earnings Per Share | $4.05 | $4.49 | $8.61 | $14.75 | $16.32 | $14.55 |
| EPS Growth | n/a | 10.86% | 91.76% | 71.31% | 10.64% | -10.85% |
| Avg. Price | $50.27 | $56.8 | $76.12 | $158.61 | $135.55 | $137.85 |
| P/E Ratio | 12.26 | 12.46 | 8.64 | 10.46 | 8.18 | 9.37 |
| Free Cash Flow (M) | $396 | -$165 | $1,105 | $1,145 | $699 | $1,492 |
| CAPEX (M) | $190 | $157 | $170 | $227 | $354 | $188 |
| Current Ratio | 1.29 | 1.46 | 1.29 | 1.11 | 1.31 | 1.55 |
Williams-Sonoma benefits from exceptional EPS growth, generally positive cash flows, and growing revenues and a flat capital expenditure trend. The company's financial statements show wider gross margins than its peer group and a decent current ratio of 1.55.
a Very Low P/E Ratio but Its Shares Are Expensive:
Williams-Sonoma has a trailing twelve month P/E ratio of 18.1, compared to an average of 22.15 for the Consumer Discretionary sector. Based on its EPS guidance of $8.24, the company has a forward P/E ratio of 17.9. The 10.7% compound average growth rate of Williams-Sonoma's historical and projected earnings per share yields a PEG ratio of 1.7. This suggests that these shares are overvalued. Furthermore, Williams-Sonoma is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.03 is higher than the sector average of 3.11. The company's shares are currently trading 31.0% below their Graham number. Ultimately, Williams-Sonoma's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Williams-Sonoma Has an Average Rating of Hold:
The 18 analysts following Williams-Sonoma have set target prices ranging from $116.0 to $175.0 per share, for an average of $150.3 with a hold rating. The company is trading -8.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Williams-Sonoma has an above average percentage of its shares sold short because 14.9% of the company's shares are sold short. Institutions own 98.4% of the company's shares, and the insider ownership rate stands at 1.23%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 24% stake in the company is worth $2,111,805,299.
