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Why NYSE:WSM qualifies as a quality stock.

By Mill Chart

Last update: Sep 4, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if WILLIAMS-SONOMA INC (NYSE:WSM) is suited for quality investing. Investors should of couse do their own research, but we spotted WILLIAMS-SONOMA INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of WILLIAMS-SONOMA INC

  • Over the past 5 years, WILLIAMS-SONOMA INC has experienced impressive revenue growth, with 10.39% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • The ROIC excluding cash and goodwill of WILLIAMS-SONOMA INC stands at 43.02%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a Debt/Free Cash Flow Ratio of 0.0, WILLIAMS-SONOMA INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • WILLIAMS-SONOMA INC exhibits impressive Profit Quality (5-year) with a 113.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • WILLIAMS-SONOMA INC has consistently achieved strong EBIT growth over the past 5 years, with a 26.0% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • WILLIAMS-SONOMA INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

WSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 134 industry peers in the Specialty Retail industry. WSM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WSM has a decent growth rate and is not valued too expensively. WSM also has an excellent dividend rating. With these ratings, WSM could be worth investigating further for dividend investing!.

For an up to date full fundamental analysis you can check the fundamental report of WSM

Our Caviar Cruise screen will find you more ideas suited for quality investing.


This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.



NYSE:WSM (11/30/2023, 5:30:00 PM)

After market: 187.547 0.01 (0%)


+0.4 (+0.21%)

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