WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
NYSE:WSM - New York Stock Exchange, Inc. - US9699041011 - Common Stock - Currency: USD
Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 123 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WSM was profitable.
WSM had a positive operating cash flow in the past year.
In the past 5 years WSM has always 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 (21.15%) than 97.56% of its industry peers.
With an excellent Return On Equity value of 50.47%, WSM belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
The Return On Invested Capital of WSM (30.57%) is better than 95.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 12.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 50.47% | ||
| ROIC | 30.57% |
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
WSM has a better Profit Margin (14.02%) than 95.12% of its industry peers.
WSM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.95%, WSM belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
WSM's Operating Margin has improved in the last couple of years.
The Gross Margin of WSM (45.57%) is better than 72.36% of its industry peers.
WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.95% | ||
| PM (TTM) | 14.02% | ||
| GM | 45.57% |
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
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 increased 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
An Altman-Z score of 7.97 indicates that WSM is not in any danger for bankruptcy at the moment.
WSM has a Altman-Z score of 7.97. This is amongst the best in the industry. WSM outperforms 97.56% of its industry peers.
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 | 7.97 |
ROIC/WACC3.28
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.51 indicates that WSM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.51, WSM is in the better half of the industry, outperforming 61.79% of the companies in the same industry.
A Quick Ratio of 0.73 indicates that WSM may have some problems paying its short term obligations.
WSM has a better Quick ratio (0.73) than 63.41% of its industry peers.
The current and quick ratio evaluation for WSM is rather negative, while it does have 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 | 1.51 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.48% over the past year.
Measured over the past years, WSM shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.28% on average per year.
WSM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.64%.
WSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.51% yearly.
EPS 1Y (TTM)12.48%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%6.32%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%4.2%
3.2 Future
The Earnings Per Share is expected to grow by 7.32% 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 3.52% on average per year.
EPS Next Y-0.85%
EPS Next 2Y2.44%
EPS Next 3Y3.91%
EPS Next 5Y7.32%
Revenue Next Year1.86%
Revenue Next 2Y2.47%
Revenue Next 3Y2.78%
Revenue Next 5Y3.52%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WSM is valuated rather expensively with a Price/Earnings ratio of 22.58.
Compared to the rest of the industry, the Price/Earnings ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 69.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, WSM is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.79, the valuation of WSM can be described as rather expensive.
WSM's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WSM to the average of the S&P500 Index (34.04), we can say WSM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 21.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, WSM is valued a bit cheaper than 67.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.24 | ||
| EV/EBITDA | 14.45 |
4.3 Compensation for Growth
The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y2.44%
EPS Next 3Y3.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, WSM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.00, WSM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, WSM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.89%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
WSM pays out 26.76% 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.
DP26.76%
EPS Next 2Y2.44%
EPS Next 3Y3.91%
199.42
-0.18 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.83%
Inst Owner Change0.54%
Ins Owners0.4%
Ins Owner Change3.55%
Market Cap24.53B
Analysts71.43
Price Target186 (-6.73%)
Short Float %4.92%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend2.23
Dividend Growth(5Y)2.89%
DP26.76%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.27%
Min EPS beat(2)4.18%
Max EPS beat(2)10.37%
EPS beat(4)4
Avg EPS beat(4)7.84%
Min EPS beat(4)4.18%
Max EPS beat(4)10.37%
EPS beat(8)8
Avg EPS beat(8)10.86%
EPS beat(12)9
Avg EPS beat(12)7.83%
EPS beat(16)13
Avg EPS beat(16)9.55%
Revenue beat(2)2
Avg Revenue beat(2)3.12%
Min Revenue beat(2)2.74%
Max Revenue beat(2)3.5%
Revenue beat(4)2
Avg Revenue beat(4)0.91%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)3.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)8
Avg Revenue beat(16)-0.15%
PT rev (1m)0.42%
PT rev (3m)-0.1%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 21.79 | ||
| P/S | 3.15 | ||
| P/FCF | 24.24 | ||
| P/OCF | 19.59 | ||
| P/B | 11.35 | ||
| P/tB | 11.77 | ||
| EV/EBITDA | 14.45 |
EPS(TTM)8.83
EY4.43%
EPS(NY)9.15
Fwd EY4.59%
FCF(TTM)8.23
FCFY4.13%
OCF(TTM)10.18
OCFY5.11%
SpS63.26
BVpS17.57
TBVpS16.94
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 50.47% | ||
| ROCE | 40.67% | ||
| ROIC | 30.57% | ||
| ROICexc | 43.97% | ||
| ROICexgc | 45.44% | ||
| OM | 17.95% | ||
| PM (TTM) | 14.02% | ||
| GM | 45.57% | ||
| FCFM | 13.01% |
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%
ROICexcg growth 3Y-3.39%
ROICexcg 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-Score8
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 104.84% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.01% | ||
| Profit Quality | 92.78% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 7.97 |
F-Score8
WACC9.32%
ROIC/WACC3.28
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)12.48%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%6.32%
EPS Next Y-0.85%
EPS Next 2Y2.44%
EPS Next 3Y3.91%
EPS Next 5Y7.32%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%4.2%
Revenue Next Year1.86%
Revenue Next 2Y2.47%
Revenue Next 3Y2.78%
Revenue Next 5Y3.52%
EBIT growth 1Y2.08%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year13.98%
EBIT Next 3Y7.55%
EBIT Next 5Y6.2%
FCF growth 1Y15.28%
FCF growth 3Y-0.17%
FCF growth 5Y22.02%
OCF growth 1Y3.43%
OCF growth 3Y-0.27%
OCF growth 5Y17.5%