Fact based stock research
Williams-Sonoma (NYSE:WSM)

US9699041011

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Williams-Sonoma stock research in summary

williams-sonomainc.com

ANALYSIS: With an Obermatt Combined Rank of 29 (worse than 71% compared with investment alternatives), Williams-Sonoma (Homefurnishing Retail, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Williams-Sonoma are low in value (priced high) with a consolidated Value Rank of 27 (worse than 73% of alternatives), and are riskily financed (Safety Rank of 30, which means above-average debt burdens) but show above-average growth (Growth Rank of 53). ...read more

RECOMMENDATION: A Combined Rank of 29, is a hold recommendation based on Williams-Sonoma's financial characteristics. As the company Williams-Sonoma shows low value with an Obermatt Value Rank of 27 (73% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 53% of comparable companies (Obermatt Growth Rank is 53). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 30 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Williams-Sonoma, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	27
Growth Rank	53
Safety Rank	30
Combined Rank	29

Country	USA
Industry	Homefurnishing Retail
Index	Dividends USA, Diversity USA, S&P MIDCAP
Size class	X-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Williams-Sonoma

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	56	55	46	27
GROWTH
GROWTH	86	11	61	53
SAFETY
SAFETY	71	96	96	30
SENTIMENT
SENTIMENT	n/a	81	50	^new
360° VIEW
360° VIEW	n/a	47	47	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 27-Oct-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Williams-Sonoma is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	56	55	46	27
GROWTH
GROWTH	86	11	61	53
SAFETY
SAFETY	71	96	96	30
COMBINED
COMBINED	90	85	85	29

Last update of combined financial performance: 4-Jul-2024. Stock analysis on combined financial performance: The higher the rank of Williams-Sonoma the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 27 (worse than 73% compared with alternatives), Williams-Sonoma shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Williams-Sonoma. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 70% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 5 which means that the stock price compared with what market professionals expect for future profits is higher than 95% of comparable companies, indicating a low value concerning Williams-Sonoma's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 38 which means that the stock price compared with what market professionals expect for future profit levels is higher than 62% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 12 is also low. Compared with invested capital, the stock price is higher than for 88% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 27, is a hold recommendation based on Williams-Sonoma's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Williams-Sonoma? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Williams-Sonoma only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	38	30	17	5
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	76	51	61	38
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	14	30	25	12
DIVIDEND YIELD
DIVIDEND YIELD	75	84	74	70
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	56	55	46	27

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Williams-Sonoma; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 53 (better than 53% compared with alternatives), Williams-Sonoma shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Williams-Sonoma. Profit Growth has a rank of 68, which means that currently professionals expect the company to grow its profits more than 68% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 99 (above 99% of alternative investments). But Sales Growth has a below the median rank of 8, which means that, currently, professionals expect the company to grow less than 92% of its competitors, and Capital Growth also has a lower rank of 38. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 53, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Williams-Sonoma. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	58	25	8	8
PROFIT GROWTH
PROFIT GROWTH	17	34	40	68
CAPITAL GROWTH
CAPITAL GROWTH	n/a	13	79	38
STOCK RETURNS
STOCK RETURNS	90	47	93	99
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	86	11	61	53

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Williams-Sonoma.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company Williams-Sonoma has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Williams-Sonoma is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Williams-Sonoma and the other two below average. Leverage is at a rank of 100 meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 28, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 72% of its competitors. Liquidity is at a rank of 1, meaning that the company generates less profit to service its debt than 99% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), Williams-Sonoma has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Williams-Sonoma are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Williams-Sonoma and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	45	68	100	100
REFINANCING
REFINANCING	41	30	30	28
LIQUIDITY
LIQUIDITY	72	95	95	1
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	71	96	96	30

Last update of Safety Rank: 4-Jul-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Williams-Sonoma and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	12	21	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	48	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	100	80	^new
MARKET PULSE
MARKET PULSE	n/a	82	59	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	81	50	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Williams-Sonoma.
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