The share price of Williams-Sonoma, Inc. [NYSE: WSM] inclined by $58.45, presently trading at $61.28. The company’s shares saw 36.16% gains compared to the lowest price in the period of the last 52 weeks, set at $45.01 recorded on 13/06/2019. The last few days have been benevolent to the share price as WSM jumped by +6.50% during the last week, even though the stock is still down by -2.25% compared to 3.74 of all time high it touched on 06/13/19. However, the stock had a strong performance during the past 3 months, roughly gaining 15.19%, while additionally dropping -1.23% during the last 12 months. Williams-Sonoma, Inc. is said to have a 12-month price target set at $56.41. That means that the stock has a strong potential to acquire -4.87% decrease from the current trading price.
Williams-Sonoma, Inc. [NYSE:WSM]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Williams-Sonoma, Inc. [WSM], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in January. On average, stock market experts give WSM an Hold rating. Its stock price has been found in the range of 45.01 to 73.99. This is compared to its latest closing price of $58.45.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Williams-Sonoma, Inc. [WSM] is sitting at 3.08. This is compared to 1 month ago, when its average rating was 3.12.
For the quarter ending in Apr-19 Williams-Sonoma, Inc. [WSM] generated $1.24 billion in sales. That’s 0.30% higher than the average estimate of $1.24 billion as provided by Wall Street analysts. The three indicators above suggest that the company is performing better than market experts expected, boosting its appeal as a solid investment.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Wed 28 Aug (In 75 Days).
Fundamental Analysis of Williams-Sonoma, Inc. [WSM]
Now let’s turn to look at profitability: with a current Operating Margin for Williams-Sonoma, Inc. [WSM] sitting at +8.28 and its Gross Margin at +37.04, this company’s Net Margin is now 4.80%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 31.76, and its Return on Invested Capital has reached 22.70%. Its Return on Equity is 28.29, and its Return on Assets is 11.92. These metrics all suggest that Williams-Sonoma, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Williams-Sonoma, Inc. [WSM] has generated a Total Debt to Total Equity ratio of 25.93. Similarly, its Total Debt to Total Capital is 20.59, while its Total Debt to Total Assets stands at 10.65. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 25.93, and its Long-Term Debt to Total Capital is 20.59. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 6.73 and its Total Debt to EBITDA Value is 0.45. The Enterprise Value to Sales for this firm is now 0.78, and its Total Debt to Enterprise Value stands at 0.07. Williams-Sonoma, Inc. [WSM] has a Price to Book Ratio of 3.68, a Price to Cash Flow Ratio of 7.59 and P/E Ratio of 14.58. These metrics all suggest that Williams-Sonoma, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Williams-Sonoma, Inc. [WSM] earns $201,120 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 57.52 and its Total Asset Turnover is 2.03. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.53 and its Current Ratio is 1.58. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Williams-Sonoma, Inc. [WSM] has 79.56M shares outstanding, amounting to a total market cap of $4.88B. Its stock price has been found in the range of 45.01 to 73.99. At its current price, it has moved down by -17.18% from its 52-week high, and it has moved up 36.16% from its 52-week low.
This stock’s Beta value is currently 0.78, which indicates that it is 3.08% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 65.96. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Williams-Sonoma, Inc. [WSM] a Reliable Buy?
Shares of Williams-Sonoma, Inc. [WSM], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.