Williams Sonoma Return On Equity vs. Revenue
| WSM Stock | USD 171.39 2.61 1.50% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.44634588 | Current Value 0.41225786 | Quarterly Volatility 0.08737618 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.39 | 0.4262 |
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| Net Profit Margin | 0.1 | 0.1225 |
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| Operating Profit Margin | 0.13 | 0.1605 |
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| Pretax Profit Margin | 0.13 | 0.1643 |
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| Return On Assets | 0.15 | 0.1801 |
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| Return On Equity | 0.41 | 0.4463 |
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For Williams Sonoma profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Williams Sonoma to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Williams Sonoma utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Williams Sonoma's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Williams Sonoma over time as well as its relative position and ranking within its peers.
Williams |
Williams Sonoma's Revenue Breakdown by Earning Segment
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Is Homefurnishing Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Williams Sonoma. If investors know Williams will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Williams Sonoma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.115 | Earnings Share 8.46 | Revenue Per Share 59.086 | Quarterly Revenue Growth (0.04) | Return On Assets 0.178 |
The market value of Williams Sonoma is measured differently than its book value, which is the value of Williams that is recorded on the company's balance sheet. Investors also form their own opinion of Williams Sonoma's value that differs from its market value or its book value, called intrinsic value, which is Williams Sonoma's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Williams Sonoma's market value can be influenced by many factors that don't directly affect Williams Sonoma's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Williams Sonoma's value and its price as these two are different measures arrived at by different means. Investors typically determine if Williams Sonoma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Williams Sonoma's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Williams Sonoma Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Williams Sonoma's current stock value. Our valuation model uses many indicators to compare Williams Sonoma value to that of its competitors to determine the firm's financial worth. Williams Sonoma is rated second in return on equity category among its peers. It is rated below average in revenue category among its peers totaling about 13,850,343,102 of Revenue per Return On Equity. At this time, Williams Sonoma's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Williams Sonoma by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Williams Revenue vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Williams Sonoma |
| = | 0.56 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Williams Sonoma |
| = | 7.75 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Williams Revenue vs Competition
Williams Sonoma is rated below average in revenue category among its peers. Market size based on revenue of Consumer Discretionary industry is at this time estimated at about 118.98 Billion. Williams Sonoma holds roughly 7.75 Billion in revenue claiming about 7% of stocks in Consumer Discretionary industry.
Williams Sonoma Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Williams Sonoma, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Williams Sonoma will eventually generate negative long term returns. The profitability progress is the general direction of Williams Sonoma's change in net profit over the period of time. It can combine multiple indicators of Williams Sonoma, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -15.6 M | -16.3 M | |
| Operating Income | 1.2 B | 1.3 B | |
| Income Before Tax | 1.3 B | 1.3 B | |
| Total Other Income Expense Net | 29.2 M | 27.7 M | |
| Net Income | 949.8 M | 997.3 M | |
| Income Tax Expense | 323.6 M | 339.8 M | |
| Net Income Applicable To Common Shares | 1.3 B | 1.4 B | |
| Net Income From Continuing Ops | 949.8 M | 528.9 M | |
| Interest Income | 2.6 M | 2.5 M | |
| Net Interest Income | 29.2 M | 30.6 M | |
| Change To Netincome | 106.1 M | 69.2 M | |
| Net Income Per Share | 7.35 | 4.41 | |
| Income Quality | 1.77 | 1.87 | |
| Net Income Per E B T | 0.75 | 0.76 |
Williams Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Williams Sonoma. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Williams Sonoma position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Williams Sonoma's important profitability drivers and their relationship over time.
Use Williams Sonoma in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Williams Sonoma position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Williams Sonoma will appreciate offsetting losses from the drop in the long position's value.Williams Sonoma Pair Trading
Williams Sonoma Pair Trading Analysis
The ability to find closely correlated positions to Williams Sonoma could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Williams Sonoma when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Williams Sonoma - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Williams Sonoma to buy it.
The correlation of Williams Sonoma is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Williams Sonoma moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Williams Sonoma moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Williams Sonoma can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Williams Sonoma position
In addition to having Williams Sonoma in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Your Current Watchlist. To learn how to invest in Williams Stock, please use our How to Invest in Williams Sonoma guide.You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
To fully project Williams Sonoma's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Williams Sonoma at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Williams Sonoma's income statement, its balance sheet, and the statement of cash flows.