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Should Quality Investors Include NYSE:WSM in Their Portfolio?

By Mill Chart

Last update: Nov 20, 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 course 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.

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.
  • With a notable ROIC excluding cash and goodwill at 43.02%, WILLIAMS-SONOMA INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 0.0, WILLIAMS-SONOMA INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • WILLIAMS-SONOMA INC demonstrates consistent Profit Quality over the past 5 years, with a strong 113.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • WILLIAMS-SONOMA INC has experienced impressive EBIT growth over the past 5 years, with 26.0% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, WILLIAMS-SONOMA INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

How does the complete fundamental picture look for NYSE:WSM?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 131 industry peers in the Specialty Retail industry. WSM gets an excellent profitability rating and is at the same time showing great financial health properties. WSM is not valued too expensively and it also shows a decent growth rate.

Check the latest full fundamental report of WSM for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.


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.