Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Williams-Sonoma Inc., FCFE calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
The financial data indicates a strong overall growth trajectory in cash generation from 2019 to 2024, characterized by a significant expansion in both operating cash flows and free cash flow to equity (FCFE), despite some interim volatility.
- Net Cash Provided by Operating Activities
- Operating cash flows exhibited steady growth initially, increasing from 585,986 thousand US$ in 2019 to 607,294 thousand US$ in 2020. A substantial acceleration occurred in 2021, where cash provided by operations more than doubled to 1,274,848 thousand US$. Following a peak of 1,371,147 thousand US$ in 2022 and a moderate contraction to 1,052,822 thousand US$ in 2023, the metric reached its highest point in 2024 at 1,680,273 thousand US$.
- Free Cash Flow to Equity (FCFE) Trends
- FCFE followed a similar upward trajectory to operating cash flows between 2019 and 2021, rising from 395,884 thousand US$ to a peak of 1,101,690 thousand US$. However, a downward trend was observed over the subsequent two years, with FCFE declining to 843,852 thousand US$ in 2022 and further to 698,705 thousand US$ in 2023. This period of contraction was reversed sharply in 2024, with FCFE surging to 1,491,815 thousand US$, marking the strongest performance in the analyzed period.
- Cash Flow Conversion and Variance Analysis
- A divergence between operating cash flows and FCFE is most evident between 2022 and 2023. While operating cash flows remained relatively robust, FCFE experienced a more pronounced decline. This variance suggests an increase in capital expenditures or net debt repayments during those fiscal years. By 2024, the gap narrowed significantly, indicating a high efficiency in converting operating cash into equity-available cash flow, with FCFE representing approximately 88.8% of net cash provided by operating activities.
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Price to FCFE Ratio, Current
Williams-Sonoma Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 64,308,083 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 1,491,815) |
| FCFE per share | 23.20 |
| Current share price (P) | 287.81 |
| Valuation Ratio | |
| P/FCFE | 12.41 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Amazon.com Inc. | 132.83 |
| Home Depot Inc. | 25.09 |
| Lowe’s Cos. Inc. | 10.59 |
| TJX Cos. Inc. | 31.00 |
| P/FCFE, Sector | |
| Consumer Discretionary Distribution & Retail | 59.73 |
| P/FCFE, Industry | |
| Consumer Discretionary | 42.04 |
Based on: 10-K (reporting date: 2024-01-28).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Williams-Sonoma Inc., historical P/FCFE calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 64,112,265 | 66,228,239 | 71,558,874 | 76,192,973 | 77,197,681 | 78,563,968 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 1,491,815) | 698,705) | 843,852) | 1,101,690) | 421,018) | 395,884) | |
| FCFE per share3 | 23.27 | 10.55 | 11.79 | 14.46 | 5.45 | 5.04 | |
| Share price1, 4 | 295.05 | 117.70 | 148.55 | 184.00 | 42.05 | 59.36 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 12.68 | 11.16 | 12.60 | 12.73 | 7.71 | 11.78 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Amazon.com Inc. | 89.69 | 84.16 | 240.95 | — | — | — | |
| Home Depot Inc. | 20.12 | 19.60 | 19.87 | 15.41 | — | — | |
| Lowe’s Cos. Inc. | 18.03 | 7.08 | 13.55 | 12.28 | — | — | |
| TJX Cos. Inc. | 28.74 | 33.59 | — | 10.55 | — | — | |
| P/FCFE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 53.08 | 41.58 | 51.89 | 59.10 | — | — | |
| P/FCFE, Industry | |||||||
| Consumer Discretionary | 39.73 | 30.88 | 36.45 | 83.41 | — | — | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,491,815,000 ÷ 64,112,265 = 23.27
4 Closing price as at the filing date of Williams-Sonoma Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 295.05 ÷ 23.27 = 12.68
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio demonstrates a high degree of stability over the six-year period analyzed, despite significant volatility in the absolute values of the share price and FCFE per share. The ratio generally fluctuates within a narrow range, centering between 11x and 13x, which indicates a consistent market valuation relative to the entity's cash-generating capacity.
- Share Price Volatility
- The share price experienced substantial fluctuations, reaching a low of US$ 42.05 in February 2020 before ascending to a peak of US$ 295.05 by January 28, 2024. This trajectory reflects a sharp expansion in market value, particularly during the 2021 recovery and the subsequent surge in 2024.
- FCFE per Share Growth
- FCFE per share exhibited a strong upward trend, increasing from US$ 5.04 in 2019 to US$ 23.27 in 2024. This growth signifies a marked improvement in the ability to generate cash available to shareholders, with the most significant acceleration occurring in the final year of the analyzed period.
- P/FCFE Ratio Dynamics
- The P/FCFE ratio reached its lowest point of 7.71 in February 2020, a period where the share price contracted more aggressively than the cash flow per share. From 2021 onward, the ratio stabilized between 11.16 and 12.73. The fact that the ratio remained nearly identical in 2021 (12.73) and 2024 (12.68) despite the vastly different price and cash flow levels suggests that the market has maintained a constant valuation multiple regardless of the scale of growth.
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