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Why WILLIAMS-SONOMA INC (NYSE:WSM) should be investigated by quality investors.

By Mill Chart

Last update: Oct 18, 2023

In this article we will dive into WILLIAMS-SONOMA INC (NYSE:WSM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed WILLIAMS-SONOMA INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

  • The 5-year revenue growth of WILLIAMS-SONOMA INC has been remarkable, with 10.39% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • 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.
  • WILLIAMS-SONOMA INC maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • The Profit Quality (5-year) of WILLIAMS-SONOMA INC stands at 113.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • With a robust 5-year EBIT growth of 26.0%, WILLIAMS-SONOMA INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • 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.

Fundamental analysis of NYSE:WSM

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 133 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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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WILLIAMS-SONOMA INC

NYSE:WSM (4/23/2024, 7:04:00 PM)

After market: 285.5 +0.43 (+0.15%)

285.07

+4.85 (+1.73%)

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Reasonable growth and debt and a high ROIC for WILLIAMS-SONOMA INC (NYSE:WSM).

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