Williams-Sonoma Inc's Meteoric Rise: Unpacking the 27% Surge in Just 3 Months

Williams-Sonoma Inc (WSM, Financial), a leader in the $300 billion domestic home category, has seen a significant surge in its stock price over the past three months. With a current market cap of $9.79 billion and a price of $152.67, the stock has gained 5.29% over the past week and a whopping 27.41% over the past three months. The stock's GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, is currently $162.36, compared to its past GF Value of $165.29 three months ago. This indicates that the stock is currently fairly valued, compared to being significantly undervalued three months ago.

Company Overview

Williams-Sonoma Inc operates in the Retail - Cyclical industry and has a wide retail and direct-to-consumer presence. The company is focused on expanding its exposure in the B2B, marketplace, and franchise areas. Its various brands include Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PBteen, West Elm, and Rejuvenation. The company also has a business-to-business team that supports projects ranging from residential to large-scale commercial. 1706327932802170880.png

Profitability Analysis

Williams-Sonoma Inc has a high Profitability Rank of 9/10, indicating a high level of profitability. The company's Operating Margin is 15.49%, which is better than 88.88% of 1115 companies in the same industry. Its ROE, ROA, and ROIC are all significantly higher than the industry average, at 64.49%, 21.33%, and 28.56% respectively. The company has also consistently been profitable over the past 10 years. 1706327950019788800.png

Growth Prospects

The company's Growth Rank is 10/10, indicating strong growth in terms of revenue and profitability. Its 3-year and 5-year Revenue Growth Rates per Share are 19.00% and 15.60% respectively, which are better than the majority of companies in the same industry. However, the company's future total revenue growth rate estimate is -1.70%. Its 3-year and 5-year EPS without NRI growth rates are 53.80% and 44.80% respectively, and its future 3-year to 5-year EPS growth rate estimate is 5.62%. 1706327969351335936.png

Top Holders

The top three holders of the company's stock are Steven Cohen (Trades, Portfolio) with 461,675 shares, Jim Simons (Trades, Portfolio) with 251,700 shares, and Chuck Royce (Trades, Portfolio) with 58,080 shares.

Competitive Landscape

Williams-Sonoma Inc's main competitors in the Retail - Cyclical industry are Dick's Sporting Goods Inc (DKS, Financial) with a market cap of $9.29 billion, Five Below Inc (FIVE, Financial) with a market cap of $8.25 billion, and MINISO Group Holding Ltd (MNSO, Financial) with a market cap of $8.27 billion.

Conclusion

In conclusion, Williams-Sonoma Inc has demonstrated strong stock performance, high profitability, and robust growth. Despite facing stiff competition in the Retail - Cyclical industry, the company's impressive financial metrics and consistent profitability over the past 10 years suggest that it is well-positioned for future growth.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.