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Is this Large Market Cap Stock target price reasonable for Williams-Sonoma Inc. (NYSE:WSM)?

The company in question is, Williams-Sonoma Inc. (NYSE:WSM) currently with a stock price of 47.81 (-1.93% today). The market cap for Williams-Sonoma Inc. is 4397.74, and is in the sector Services, and Home Furnishing Stores industry. The target price for Williams-Sonoma Inc. is 56.67. Currently Williams-Sonoma Inc. is trading with a P/E of 14.6, and a forward P/E of 12.94. Average volume for Williams-Sonoma Inc. is 1834.96 and so far today it is 653817.

Performance in the last year for Williams-Sonoma Inc. has been -33.20%. For EPS growth, Williams-Sonoma Inc. has seen a growth of 3.80%, and is looking to grow in the next year to 8.75%. More long term stats show that EPS growth has been 13.00% over the last five years and could be 7.70% for the next five years. Williams-Sonoma Inc. has seen sales growth quarter over quarter at 2.80%, with EPS growth quarter over quarter at -0.50%. The 20-day simple moving average is -6.86%, with the 200-day simple moving average coming to -10.20%.

Since the IPO date for Williams-Sonoma Inc. on the 3/26/1990, Williams-Sonoma Inc. has seen performance year to date to be -14.86%. With Williams-Sonoma Inc. trading at 47.81, the dividend yield is 3.04%, and the EPS is 3.34.

So could Williams-Sonoma Inc., be undervalued? Well as said before P/E is 14.6. The PEG is 1.9, P/S is 0.87 and the P/B is at 3.76. The P/cash is 39.58, with P/free cash flow at 20.41.

Williams-Sonoma Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 0.3. This is with long term debt/equity at 0, and total debt/equity at 0.11.

In terms of margins, Williams-Sonoma Inc. has a gross margin of 36.70%, an operating margin of 9.50% and a profit margin of 6.00%.Payout ratio for Williams-Sonoma Inc. is 42.60%. Return on assets come to 12.70% with return on investment coming to 25.90%.

Insider ownership for Williams-Sonoma Inc., is at 1.20% and institutional ownership comes to 99.30%. Outstanding shares are at 90.21. While shares float is 80.99. The float short is currently 22.81%, and short ratio is 10.07.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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