WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
NYSE:WSM - New York Stock Exchange, Inc. - US9699041011 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to WSM. WSM was compared to 121 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WSM had positive earnings in the past year.
In the past year WSM had a positive cash flow from operations.
In the past 5 years WSM has always been profitable.
Each year in the past 5 years WSM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.15%, WSM belongs to the top of the industry, outperforming 97.52% of the companies in the same industry.
WSM's Return On Equity of 50.47% is amongst the best of the industry. WSM outperforms 95.04% of its industry peers.
WSM has a Return On Invested Capital of 30.57%. This is amongst the best in the industry. WSM outperforms 95.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 13.03%.
| 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 95.04% of its industry peers.
In the last couple of years the Profit Margin of WSM has grown nicely.
The Operating Margin of WSM (17.95%) is better than 95.04% of its industry peers.
WSM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 45.57%, WSM is doing good in the industry, outperforming 71.07% of the companies in the same industry.
WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.95% | ||
| 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
WSM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for WSM has been reduced compared to 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 6.92. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
WSM has a Altman-Z score of 6.92. This is amongst the best in the industry. WSM outperforms 94.21% 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 | 6.92 |
ROIC/WACC3.17
WACC9.64%
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 61.98% of the companies in the same industry.
WSM has a Quick Ratio of 1.51. This is a bad value and indicates that WSM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.73, WSM is doing good in the industry, outperforming 63.64% of the companies in the same industry.
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.
WSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.28% yearly.
The Revenue has been growing slightly by 1.64% in the past year.
The Revenue has been growing slightly by 5.51% on average over the past years.
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
WSM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.32% yearly.
The Revenue is expected to grow by 3.52% on average over the next years.
EPS Next Y-1.93%
EPS Next 2Y2.26%
EPS Next 3Y4.57%
EPS Next 5Y7.32%
Revenue Next Year1.82%
Revenue Next 2Y2.45%
Revenue Next 3Y2.93%
Revenue Next 5Y3.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 18.26, WSM is valued on the expensive side.
Based on the Price/Earnings ratio, WSM is valued a bit cheaper than 70.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.32, WSM is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.68 indicates a rather expensive valuation of WSM.
The rest of the industry has a similar Price/Forward Earnings ratio as WSM.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, WSM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.26 | ||
| Fwd PE | 17.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WSM.
Based on the Price/Free Cash Flow ratio, WSM is valued a bit cheaper than the industry average as 70.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.59 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y2.26%
EPS Next 3Y4.57%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.21, WSM pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, WSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
The dividend of WSM has a limited annual growth rate of 2.89%.
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)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 2Y2.26%
EPS Next 3Y4.57%
NYSE:WSM (6/18/2025, 3:45:01 PM)
161.24
+4.31 (+2.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.08%
Inst Owner Change-0.92%
Ins Owners0.4%
Ins Owner Change3.27%
Market Cap19.83B
Analysts70
Price Target183.53 (13.82%)
Short Float %5.42%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)0.41%
PT rev (3m)-3.29%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-2.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.58%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.26 | ||
| Fwd PE | 17.68 | ||
| P/S | 2.55 | ||
| P/FCF | 19.59 | ||
| P/OCF | 15.83 | ||
| P/B | 9.18 | ||
| P/tB | 9.52 | ||
| EV/EBITDA | 11.22 |
EPS(TTM)8.83
EY5.48%
EPS(NY)9.12
Fwd EY5.66%
FCF(TTM)8.23
FCFY5.1%
OCF(TTM)10.18
OCFY6.32%
SpS63.27
BVpS17.57
TBVpS16.94
PEG (NY)N/A
PEG (5Y)0.62
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 | 6.92 |
F-Score8
WACC9.64%
ROIC/WACC3.17
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-1.93%
EPS Next 2Y2.26%
EPS Next 3Y4.57%
EPS Next 5Y7.32%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%4.2%
Revenue Next Year1.82%
Revenue Next 2Y2.45%
Revenue Next 3Y2.93%
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%