Williams Sonoma could have been a position MarketScreener's portfolio, as its operational and financial performance is in line with the opportunities typically selected by our quantitative selections.

The 2023 results, like every year, set new records. Looking back over the long term, between 2013 and 2023, revenues grew from $4 billion to $8.7 billion, in parallel with a remarkable expansion of margins.

It is hard to find a comparable with such a profitable operation among the other large American retailers. The usual benchmarks among large, well-managed chains - such as Home Depot or TJX - remain several hundred basis points below.

There is, however, one player with a similar margin profile - AutoZone. Williams and AutoZone share a similar strategy: very lucrative own brands, no acquisitions, and management that is totally focused on returning capital to shareholders.

At both companies, the number of shares in circulation has decreased by one third over the last decade. In the light of the exceptional stock market performance of AutoZone, one can assume that Williams shareholders are happy with the program.

Yet the group is currently valued at its lowest profit multiples in ten years, and at only x8 its record profits achieved last year. At a multiple of less than x5 Ebitda, it also represents a possibly tempting target for a private equity fund.

The fear of being heckled by Amazon looms over Williams, of course. Nothing new on that front, however, and to date this has hardly prevented the retailer from delivering better-than-expected results. No worries either about the balance sheet, which is completely debt-free.

The only regret: the sale of shares by the management, including the charismatic CEO Laura Alber.