Williams-Sonoma (NYSE: WSM)
Quality Value Investing Research Report | Updated Coverage | January 2024
Summary:
Although shunned by short-side traders, Williams-Sonoma’s high-quality brands and growing omnichannel storefronts remain favorites among an affluent and loyal customer base.
An analysis of the company’s current wealth uncovers bullish ratings in its value proposition, returns on management, and enterprise downside risks.
The stock price’s present value suggests that its shares remain underbought or oversold by the market, although volatility and short interest are above average.
Quality Value Investing (QVI) changes its Expanded Stock Picks coverage rating of Williams-Sonoma in this updated research report.
Access your Quality Value Investing (QVI) Glossary of Investing Terms and Metric Targets when referencing this research report. Unless noted, all data presented is sourced from Seeking Alpha Premium as of the market close on January 9, 2024, and intended for illustration only.
The 43 holdings in the QVI Real-Time Stock Picks have collectively achieved alpha for 15 years by focusing research and analysis on a company’s current wealth and its share price’s present value. In other words, just the facts without unreliable predictive analysis typical of the buy side or the business modeling overkill of sell-side Wall Street analysts.
In this updated QVI Research Report, we’ll look at the Expanded Real-Time Stock Picks consumer discretionary sector holding Williams-Sonoma, Inc. to see if it continues to meet Quality Value Investing’s active portfolio inclusion criteria based on our checklist analysis of the business’s current wealth and its stock’s present value.
Williams-Sonoma: Company Current Wealth
To uncover the current wealth of the company, QVI defines the value proposition, measures select returns on management, and assesses enterprise downside risks.
Value Proposition
QVI Research Report’s value proposition section provides a brief synopsis of the company’s business model, major-exchange listing, stock symbol, market capitalization, and dividend-paying status. In addition, it defines the competitive advantages of a company’s products or services to its customers compared to the industry, including the stock’s historical performance vs. the sector and market.
Williams-Sonoma $WSM is a dividend-paying mid-cap stock in the consumer discretionary sector’s homefurnishing retail industry. WSM was added to the QVI Extended Stock Picks on March 23, 2018, at a split and dividend-adjusted $43.38 a share.
Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for the home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand.
The company also provides home decor products under the West Elm brand, kids accessories under the Pottery Barn Kids brand, and organic bedding to multi-purpose furniture under the Pottery Barn Teen brand.
In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; and women’s and men’s accessories, travel, entertaining and bar, home décor, and seasonal items under the Mark and Graham brand, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and décor industry. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores.
Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California, USA.
QVI’s value proposition elevator pitch for Williams-Sonoma:
Williams-Sonoma’s high-quality brands and growing omnichannel storefronts remain favorites among an affluent and loyal customer base.
Due Diligence Resources
For a more in-depth analysis of the all-important value proposition, visit Williams-Sonoma’s investor relations webpage and its most recent Form 10-K Annual Report submitted to the US Securities and Exchange Commission or SEC.
Performance vs. Sector and Market
The chart below illustrates Williams-Sonoma’s performance against the Consumer Discretionary Select Sector SPDR® Fund ETF (NYSE: XLY) and the SPDR® S&P 500 ETF Trust (NYSE: SPY) since being added to the QVI Extended Stock Picks on March 23, 2018. WSM has dramatically outperformed its sector and broader market since being covered by QVI about six years ago.
QVI’s value proposition rating for Williams-Sonoma: Bullish.
Next, we’ll look at the company’s returns on management and enterprise downsize risks, the share price’s present value, and the investment thesis, each exclusive to Quality Value Investing’s premium (paying) subscribers.