Williams-Sonoma, Inc. [NYSE:WSM]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to Williams-Sonoma, Inc. [WSM], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of 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 $59.81.
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 3.12. This is compared to 1 month ago, when its average rating was 3.13.
For the quarter ending in Jan-19 Williams-Sonoma, Inc. [WSM] generated $1.84 billion in sales. That’s 2.15% higher than the average estimate of $1.8 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 on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Wed 22 May (In 40 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 5.90%. 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 is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 6.67 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 14.38. 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 79.47M shares outstanding, amounting to a total market cap of $4.66B. Its stock price has been found in the range of 45.01 to 73.99. At its current price, it has moved by -20.66% from its 52-week high, and it has moved 30.43% from its 52-week low.
This stock’s Beta value is currently 0.92, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 54.17. 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.