Williams Sonoma Inc is trading at a PE of 7 compared to a historical PE closer to 15. It has no long term debt and its mostly in e-commerce now so doesn't have the drag of brick and mortar stores, has strong brands like Pottery Barn and has a consistent ROCE above 20 as well as a new area of growth in B2B sales where they do the whole stack from design to providing the furnishings. It's seen consistent top line revenue growth of 7% a year for the last ten years, dividend growth has been consistent and the payout ratio is less than 30% and the margins improved during the pandemic and management believe it will remain in the two digits area.
This seems like a really undervalued company even if you believe the recession is coming and going to hurt it. Recessions don't last forever and it is in a strong position to come out of it and do well.
So a double bagger or am I missing something, the more I look at it the more I like it.
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