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Exploring NYSE:WSM's dividend characteristics.

By Mill Chart

Last update: Nov 9, 2023

Consider WILLIAMS-SONOMA INC (NYSE:WSM) as a top pick for dividend investors, identified by our stock screening tool. NYSE:WSM shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Assessing Dividend for NYSE:WSM

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:WSM has been assigned a 7 for dividend:

  • WSM's Dividend Yield is rather good when compared to the industry average which is at 3.74. WSM pays more dividend than 84.73% of the companies 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 their dividend for at least 10 years, which is a reliable track record.
  • WSM pays out 22.94% of its income as dividend. This is a sustainable payout ratio.

Health Analysis for NYSE:WSM

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:WSM has achieved a 9 out of 10:

  • WSM has an Altman-Z score of 5.13. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
  • WSM's Altman-Z score of 5.13 is amongst the best of the industry. WSM outperforms 93.13% 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.
  • WSM does not score too well on the current and quick ratio evaluation. However, as it has 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:

  • WSM has a Return On Assets of 21.10%. This is amongst the best in the industry. WSM outperforms 96.18% of its industry peers.
  • WSM's Return On Equity of 59.52% is amongst the best of the industry. WSM outperforms 93.13% of its industry peers.
  • WSM's Return On Invested Capital of 34.27% is amongst the best of the industry. WSM outperforms 97.71% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 13.32%.
  • The last Return On Invested Capital (34.27%) for WSM is above the 3 year average (33.33%), which is a sign of increasing profitability.
  • WSM has a Profit Margin of 11.67%. This is amongst the best in the industry. WSM outperforms 95.42% of its industry peers.
  • In the last couple of years the Profit Margin of WSM has grown nicely.
  • WSM has a better Operating Margin (15.79%) than 93.13% of its industry peers.
  • In the last couple of years the Operating Margin of WSM has grown nicely.
  • WSM's Gross Margin of 40.58% is fine compared to the rest of the industry. WSM outperforms 61.83% of its industry peers.
  • In the last couple of years the Gross Margin of WSM has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of WSM contains the most current fundamental analsysis.

Keep in mind

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.

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WILLIAMS-SONOMA INC

NYSE:WSM (2/23/2024, 7:20:20 PM)

After market: 226.01 -0.6 (-0.26%)

226.61

+1.11 (+0.49%)

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