- Williams-Sonoma's respective non-GAAP diluted EPS and FCF payout ratios of 21.8% and 14.3% leave room for expansion over the long term.
- The company demonstrated arguably the most impressive operating results in its corporate history during 2020, posting 15.0% YoY net revenue growth and 86.8% YoY non-GAAP diluted EPS growth.
- Interest coverage ratio materially improved from ~51.6 in 2019 to a fortress-like ~55.1 in 2020.
- Despite a 30%+ runup in share price since my last article in January (versus the S&P 500's 8%), I estimate WSM is trading at merely a 1% premium to fair value.
- Between its 1.4% yield, 8.0-9.0% annual earnings growth, and 0.1% annual valuation multiple contraction, I believe shares will meet my 10% annual total return requirement over the next decade.
For further details see:
Williams-Sonoma: Why I'm Upgrading To A Buy