$Williams-Sonoma (WSM.US)$🎯 As of 2023.12.19, the current p...

New data: Q2 and Q3 of 2024, revenue, operating profit, and net income have declined for four consecutive quarters. However, on a quarter-on-quarter basis, the past two quarters have started to rebound.

Revenue in the first 3 quarters of 2024 has declined by 12.1%, and operating profit has declined by 23.6% due to the decline in gross margin. Interest income has slightly increased, and net income has declined by 23%. The return on equity (ROE) has rebounded from 9.88% in the first 3 quarters to 13.8%, which is still a good ROI.

The asset-liability ratio has decreased from 63.5% at the beginning of the year to 62.9%. Cash has increased significantly, while accounts receivable and inventory have slightly decreased. There is very little goodwill and no interest-bearing debt. The share capital has decreased from 0.663 million at the beginning of the year to 0.642 million, a decrease of nearly 10%, which is very beneficial for EPS improvement.

The operating net cash flow is significantly higher than the net investment amount, with a lot of shareholder surplus.

Currently, the PE ratio is 12.5, and the TTM PE ratio has risen to 14.2. If the net income declines by 20% for the whole year, the PE ratio will increase to 15.6. Overall, the valuation still remains within a reasonable range, and there is no need for adjustment at the moment.