WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSM - US9699041011 - Common Stock
197.81 USD
+5.97 (+3.11%)
197.81 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to WSM. WSM was compared to 122 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. WSM has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years WSM has been profitable.
WSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WSM has a better Return On Assets (20.81%) than 97.54% of its industry peers.
Looking at the Return On Equity, with a value of 53.45%, WSM belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 31.18%, WSM belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WSM is significantly above the industry average of 12.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.81% | ||
| ROE | 53.45% | ||
| ROIC | 31.18% |
ROA(3y)21.14%
ROA(5y)20.48%
ROE(3y)54.49%
ROE(5y)54.47%
ROIC(3y)32.3%
ROIC(5y)31.62%
1.3 Margins
The Profit Margin of WSM (13.97%) is better than 95.90% of its industry peers.
In the last couple of years the Profit Margin of WSM has grown nicely.
WSM's Operating Margin of 18.12% is amongst the best of the industry. WSM outperforms 94.26% of its industry peers.
In the last couple of years the Operating Margin of WSM has grown nicely.
With a decent Gross Margin value of 45.63%, WSM is doing good in the industry, outperforming 71.31% of the companies in the same industry.
WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.12% | ||
| PM (TTM) | 13.97% | ||
| GM | 45.63% |
OM growth 3Y1.81%
OM growth 5Y18.68%
PM growth 3Y2.23%
PM growth 5Y19.3%
GM growth 3Y1.79%
GM growth 5Y5.07%
2. Health
2.1 Basic Checks
WSM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
WSM has less shares outstanding than it did 1 year ago.
WSM has more shares outstanding than it did 5 years ago.
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.
2.2 Solvency
WSM has an Altman-Z score of 7.20. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
WSM has a better Altman-Z score (7.20) than 95.90% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.2 |
ROIC/WACC3.2
WACC9.73%
2.3 Liquidity
A Current Ratio of 1.43 indicates that WSM should not have too much problems paying its short term obligations.
WSM has a Current ratio of 1.43. This is comparable to the rest of the industry: WSM outperforms 56.56% of its industry peers.
WSM has a Quick Ratio of 1.43. 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 0.60, WSM is in line with its industry, outperforming 57.38% 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 | 1.43 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.40% over the past year.
WSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.28% yearly.
WSM shows a small growth in Revenue. In the last year, the Revenue has grown by 5.10%.
Measured over the past years, WSM shows a small growth in Revenue. The Revenue has been growing by 5.51% on average per year.
EPS 1Y (TTM)11.4%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%0%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%4.56%
3.2 Future
The Earnings Per Share is expected to grow by 6.90% on average over the next years.
Based on estimates for the next years, WSM will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y0.66%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
EPS Next 5Y6.9%
Revenue Next Year3.45%
Revenue Next 2Y3.47%
Revenue Next 3Y3.66%
Revenue Next 5Y3.77%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 21.76, WSM is valued on the expensive side.
Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 72.95% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WSM to the average of the S&P500 Index (27.00), we can say WSM is valued inline with the index average.
The Price/Forward Earnings ratio is 21.46, which indicates a rather expensive current valuation of WSM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 61.48% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WSM to the average of the S&P500 Index (23.70), we can say WSM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 21.46 |
4.2 Price Multiples
WSM's Enterprise Value to EBITDA is on the same level as the industry average.
WSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSM is cheaper than 71.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.36 | ||
| EV/EBITDA | 13.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WSM does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)33.21
PEG (5Y)0.74
EPS Next 2Y2.81%
EPS Next 3Y4.71%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
WSM's Dividend Yield is a higher than the industry average which is at 2.20.
WSM's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
The dividend of WSM has a limited annual growth rate of 2.89%.
WSM has been paying a dividend for at least 10 years, so it has a reliable track record.
WSM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.89%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
WSM pays out 27.85% of its income as dividend. This is a sustainable payout ratio.
WSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.85%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
197.81
+5.97 (+3.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.79%
Inst Owner Change0%
Ins Owners0.4%
Ins Owner Change-7.77%
Market Cap23.61B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target202.51 (2.38%)
Short Float %6.75%
Short Ratio6.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend2.23
Dividend Growth(5Y)2.89%
DP27.85%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.82%
Min EPS beat(2)3.94%
Max EPS beat(2)9.71%
EPS beat(4)4
Avg EPS beat(4)7.05%
Min EPS beat(4)3.94%
Max EPS beat(4)10.37%
EPS beat(8)8
Avg EPS beat(8)9.71%
EPS beat(12)10
Avg EPS beat(12)8.21%
EPS beat(16)13
Avg EPS beat(16)8.66%
Revenue beat(2)0
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)-0.06%
Revenue beat(4)2
Avg Revenue beat(4)1.42%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)3.5%
Revenue beat(8)3
Avg Revenue beat(8)0.43%
Revenue beat(12)3
Avg Revenue beat(12)-1.42%
Revenue beat(16)6
Avg Revenue beat(16)-0.74%
PT rev (1m)-3.32%
PT rev (3m)-2.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)0%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 21.46 | ||
| P/S | 2.98 | ||
| P/FCF | 21.36 | ||
| P/OCF | 17.47 | ||
| P/B | 11.42 | ||
| P/tB | 11.86 | ||
| EV/EBITDA | 13.24 |
EPS(TTM)9.09
EY4.6%
EPS(NY)9.22
Fwd EY4.66%
FCF(TTM)9.26
FCFY4.68%
OCF(TTM)11.32
OCFY5.72%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)33.21
PEG (5Y)0.74
Graham Number59.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.81% | ||
| ROE | 53.45% | ||
| ROCE | 41.48% | ||
| ROIC | 31.18% | ||
| ROICexc | 41.9% | ||
| ROICexgc | 43.2% | ||
| OM | 18.12% | ||
| PM (TTM) | 13.97% | ||
| GM | 45.63% | ||
| FCFM | 13.98% |
ROA(3y)21.14%
ROA(5y)20.48%
ROE(3y)54.49%
ROE(5y)54.47%
ROIC(3y)32.3%
ROIC(5y)31.62%
ROICexc(3y)45.42%
ROICexc(5y)45.62%
ROICexgc(3y)47.01%
ROICexgc(5y)47.4%
ROCE(3y)42.97%
ROCE(5y)42.71%
ROICexgc growth 3Y-3.39%
ROICexgc growth 5Y23.09%
ROICexc growth 3Y-3.15%
ROICexc growth 5Y23.27%
OM growth 3Y1.81%
OM growth 5Y18.68%
PM growth 3Y2.23%
PM growth 5Y19.3%
GM growth 3Y1.79%
GM growth 5Y5.07%
F-Score6
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 107.38% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.29% | ||
| Profit Quality | 100.04% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 7.2 |
F-Score6
WACC9.73%
ROIC/WACC3.2
Cap/Depr(3y)114.25%
Cap/Depr(5y)109.62%
Cap/Sales(3y)3.13%
Cap/Sales(5y)2.93%
Profit Quality(3y)106.74%
Profit Quality(5y)116.84%
High Growth Momentum
Growth
EPS 1Y (TTM)11.4%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%0%
EPS Next Y0.66%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
EPS Next 5Y6.9%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%4.56%
Revenue Next Year3.45%
Revenue Next 2Y3.47%
Revenue Next 3Y3.66%
Revenue Next 5Y3.77%
EBIT growth 1Y2.96%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year18.76%
EBIT Next 3Y8.61%
EBIT Next 5Y6.66%
FCF growth 1Y-9.01%
FCF growth 3Y-0.17%
FCF growth 5Y22.02%
OCF growth 1Y-8.05%
OCF growth 3Y-0.27%
OCF growth 5Y17.5%
WILLIAMS-SONOMA INC / WSM FAQ
What is the ChartMill fundamental rating of WILLIAMS-SONOMA INC (WSM) stock?
ChartMill assigns a fundamental rating of 7 / 10 to WSM.
What is the valuation status of WILLIAMS-SONOMA INC (WSM) stock?
ChartMill assigns a valuation rating of 4 / 10 to WILLIAMS-SONOMA INC (WSM). This can be considered as Fairly Valued.
What is the profitability of WSM stock?
WILLIAMS-SONOMA INC (WSM) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for WSM stock?
The Price/Earnings (PE) ratio for WILLIAMS-SONOMA INC (WSM) is 21.76 and the Price/Book (PB) ratio is 11.42.
Can you provide the expected EPS growth for WSM stock?
The Earnings per Share (EPS) of WILLIAMS-SONOMA INC (WSM) is expected to grow by 0.66% in the next year.