WILLIAMS-SONOMA INC (WSM)
US9699041011 - Common Stock
We assign a fundamental rating of 7 out of 10 to WSM. WSM was compared to 127 industry peers in the Specialty Retail industry. WSM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on WSM. This makes WSM very considerable for value investing!
1. Profitability
1.1 Basic Checks
WSM had positive earnings in the past year.
WSM had a positive operating cash flow in the past year.
WSM had positive earnings in each of the past 5 years.
WSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WSM (20.52%) is better than 97.62% of its industry peers.
WSM has a better Return On Equity (47.92%) than 92.06% of its industry peers.
WSM has a Return On Invested Capital of 29.79%. This is amongst the best in the industry. WSM outperforms 96.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 13.06%.
The 3 year average ROIC (34.32%) for WSM is well above the current ROIC(29.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.52% | ||
| ROE | 47.92% | ||
| ROIC | 29.79% |
ROA(3y)22.18%
ROA(5y)17.99%
ROE(3y)59.54%
ROE(5y)49.73%
ROIC(3y)34.32%
ROIC(5y)28.01%
1.3 Margins
With an excellent Profit Margin value of 13.83%, WSM belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
In the last couple of years the Profit Margin of WSM has grown nicely.
WSM has a better Operating Margin (17.88%) than 95.24% of its industry peers.
In the last couple of years the Operating Margin of WSM has grown nicely.
Looking at the Gross Margin, with a value of 44.82%, WSM is in the better half of the industry, outperforming 70.63% of the companies in the same industry.
WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.88% | ||
| PM (TTM) | 13.83% | ||
| GM | 44.82% |
OM growth 3Y5.09%
OM growth 5Y15.04%
PM growth 3Y6.89%
PM growth 5Y15.8%
GM growth 3Y2.98%
GM growth 5Y2.85%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WSM is creating value.
The number of shares outstanding for WSM has been reduced compared to 1 year ago.
The number of shares outstanding for WSM has been reduced compared to 5 years ago.
WSM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
WSM has an Altman-Z score of 6.98. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.98, WSM belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
WSM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.98 |
ROIC/WACC3.27
WACC9.1%
2.3 Liquidity
WSM has a Current Ratio of 1.55. This is a normal value and indicates that WSM is financially healthy and should not expect problems in meeting its short term obligations.
WSM has a Current ratio (1.55) which is in line with its industry peers.
WSM has a Quick Ratio of 1.55. This is a bad value and indicates that WSM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.85, WSM is in the better half of the industry, outperforming 67.46% of the companies in the same 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
WSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.20%.
The Earnings Per Share has been growing by 21.42% on average over the past years. This is a very strong growth
WSM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.34%.
WSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
EPS 1Y (TTM)-27.2%
EPS 3Y9.4%
EPS 5Y21.42%
EPS Q2Q%-25.96%
Revenue 1Y (TTM)-10.34%
Revenue growth 3Y4.54%
Revenue growth 5Y6.45%
Sales Q2Q%-5.42%
3.2 Future
The Earnings Per Share is expected to grow by 14.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.36% on average over the next years.
EPS Next Y38.71%
EPS Next 2Y18.8%
EPS Next 3Y14.79%
EPS Next 5Y14.09%
Revenue Next Year0.66%
Revenue Next 2Y1.3%
Revenue Next 3Y2.36%
Revenue Next 5Y3.36%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WSM is valuated correctly with a Price/Earnings ratio of 13.83.
Compared to the rest of the industry, the Price/Earnings ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 78.57% of the companies listed in the same industry.
WSM is valuated rather cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.30, the valuation of WSM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WSM is valued cheaper than 82.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, WSM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
WSM's Enterprise Value to EBITDA ratio is in line with the industry average.
WSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSM is cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.42 | ||
| EV/EBITDA | 11.31 |
4.3 Compensation for Growth
WSM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WSM has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WSM's earnings are expected to grow with 14.79% in the coming years.
PEG (NY)0.36
PEG (5Y)0.65
EPS Next 2Y18.8%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.53%.
WSM's Dividend Yield is a higher than the industry average which is at 3.42.
Compared to the average S&P500 Dividend Yield of 2.30, WSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of WSM is nicely growing with an annual growth rate of 15.61%!
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.
Dividend Growth(5Y)15.61%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
WSM pays out 22.40% of its income as dividend. This is a sustainable payout ratio.
The dividend of WSM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.4%
EPS Next 2Y18.8%
EPS Next 3Y14.79%
WILLIAMS-SONOMA INC
NYSE:WSM (7/26/2024, 7:07:27 PM)
After market: 155.5 0 (0%)155.5
+4.83 (+3.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 9.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.36
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.52% | ||
| ROE | 47.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.88% | ||
| PM (TTM) | 13.83% | ||
| GM | 44.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-27.2%
EPS 3Y9.4%
EPS 5Y
EPS Q2Q%
EPS Next Y38.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.34%
Revenue growth 3Y4.54%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y