Following Peter Lynch’s approach: Does WILLIAMS-SONOMA INC (NYSE:WSM) fit the bill?

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if WILLIAMS-SONOMA INC (NYSE:WSM) fits his winning formula.

Is WILLIAMS-SONOMA INC (NYSE:WSM) the type of stock Peter Lynch would love?

• WSM showcases a robust Return on Equity (ROE) of 52.52%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• A Debt/Equity ratio of 0.0 indicates that WSM is leveraging debt effectively without excessive risk.
• WSM has achieved 29.28 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• With a PEG ratio at 0.61, WSM is priced attractively relative to its earnings expansion.
• With a Current Ratio of 1.44, WSM appears well-positioned to meet its near-term financial obligations.

What is the full fundamental picture of WSM telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 121 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.

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

More Affordable Growth stocks can be found in our Peter Lynch screener.

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.