Why NYSE:WSM qualifies as a good dividend investing stock.

WILLIAMS-SONOMA INC (NYSE:WSM) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:WSM scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Analyzing Dividend Metrics

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:WSM scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 5.00, WSM pays a better dividend. On top of this WSM pays more dividend than 82.58% of the companies listed in the same industry.
• The dividend of WSM is nicely growing with an annual growth rate of 14.78%!
• WSM has paid a dividend for at least 10 years, which is a reliable track record.
• WSM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• WSM pays out 22.94% of its income as dividend. This is a sustainable payout ratio.

Health Insights: NYSE:WSM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:WSM scores a 9 out of 10:

• An Altman-Z score of 5.31 indicates that WSM is not in any danger for bankruptcy at the moment.
• WSM has a Altman-Z score of 5.31. This is amongst the best in the industry. WSM outperforms 93.18% of its industry peers.
• There is no outstanding debt for WSM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• The current and quick ratio evaluation for WSM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Assessing Profitability for NYSE:WSM

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:WSM was assigned a score of 9 for profitability:

• Looking at the Return On Assets, with a value of 21.10%, WSM belongs to the top of the industry, outperforming 96.21% of the companies in the same industry.
• WSM has a Return On Equity of 59.52%. This is amongst the best in the industry. WSM outperforms 94.70% of its industry peers.
• The Return On Invested Capital of WSM (34.27%) is better than 97.73% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 13.73%.
• The 3 year average ROIC (33.33%) for WSM is below the current ROIC(34.27%), indicating increased profibility in the last year.
• WSM has a better Profit Margin (11.67%) than 94.70% of its industry peers.
• WSM's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 15.79%, WSM belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
• WSM's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 40.58%, WSM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
• In the last couple of years the Gross Margin of WSM has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.