Looking at some ROIC (Return on Invested Capital) numbers, Williams-Sonoma, Inc. (NYSE:WSM)’s ROIC Quality Score is 10.013334. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits. This formula is calculated by 5 year average Return on Invested Capital (ROIC) / Standard Deviation of the 5 year ROIC. The higher the ratio, the better as a higher score indicates a more stable return on invested capital.
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We can now take a quick look at some historical stock price index data. Williams-Sonoma, Inc. (NYSE:WSM) presently has a 10 month price index of 0.90782. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.20543, the 24 month is 1.10324, and the 36 month is 1.04777. Narrowing in a bit closer, the 5 month price index is 1.12619, the 3 month is 1.09939, and the 1 month is currently 1.00809.
Williams-Sonoma, Inc. (NYSE:WSM) has a Price to Book ratio of 3.895860. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 7.683632, and a current Price to Earnings ratio of 13.493308. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.
Checking in on some valuation rankings, Williams-Sonoma, Inc. (NYSE:WSM) has a Value Composite score of 26. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 17.
The Leverage Ratio of Williams-Sonoma, Inc. (NYSE:WSM) is 0.107034. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.
Watching some historical volatility numbers on shares of Williams-Sonoma, Inc. (NYSE:WSM), we can see that the 12 month volatility is presently 39.330800. The 6 month volatility is 37.778200, and the 3 month is spotted at 25.374100. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Williams-Sonoma, Inc. (NYSE:WSM) is 1.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.
The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Williams-Sonoma, Inc. (NYSE:WSM) has an M-Score of -2.825346. The M-Score is based on 8 different variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets. A score higher than -1.78 is an indicator that the company might be manipulating their numbers.
The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Williams-Sonoma, Inc. (NYSE:WSM) is 7. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.
Return on Assets
There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Williams-Sonoma, Inc. (NYSE:WSM) is 0.119783. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.
The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Williams-Sonoma, Inc. (NYSE:WSM) is 3797. The lower the ERP5 rank, the more undervalued a company is thought to be.
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