$Williams-Sonoma (WSM.US)$🎯 2023.12.19 Current price 203.7,...

New data: 24Q2, Q3. Revenue, operating profit, and net profit have shrunk for 4 consecutive quarters, but on a month-on-month basis, they have begun to pick up in the past two quarters.

In the first three quarters of 2024, revenue shrank by 12.1%, operating profit shrank by 23.6% due to the decline in gross margin, interest income increased slightly, and net profit fell 23%. The return on net assets in the first three quarters rebounded from 9.88% to 13.8%, which is still a good return.

The balance ratio fell to 62.9% from 63.5% at the beginning of the year. Cash increased sharply, receivables and inventories declined slightly, goodwill was scarce, and there was no interest-bearing debt. The share capital fell from 663,000 at the beginning of the year to 642,000, a decrease of nearly 10%, which is of great benefit to the increase in earnings per share.

Net cash flow was significantly higher than net investment, and shareholder surpluses were high.

Currently, the price-earnings ratio is 12.5, and the price-earnings ratio TTM has been raised to 14.2. If net profit falls 20% for the whole year, the price-earnings ratio will rise to 15.6. Overall, the valuation is still within a reasonable range, so there is no need for adjustment for the time being.