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Why the quality investor may take a look at WILLIAMS-SONOMA INC (NYSE:WSM).

By Mill Chart

Last update: Jun 14, 2024

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.

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What matters for quality investors.

  • WILLIAMS-SONOMA INC has demonstrated significant revenue growth over the past 5 years, with a 6.45% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a robust ROIC excluding cash and goodwill at 48.63%, WILLIAMS-SONOMA INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • 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.
  • The Profit Quality (5-year) of WILLIAMS-SONOMA INC stands at 120.0%, 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.
  • WILLIAMS-SONOMA INC has consistently achieved strong EBIT growth over the past 5 years, with a 22.46% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of WILLIAMS-SONOMA INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall WSM gets a fundamental rating of 7 out of 10. We evaluated WSM against 125 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 correct valuation and a medium 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.


This article should in no way be interpreted as advice. 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.