WILLIAMS-SONOMA INC (WSM) Fundamental Analysis & Valuation
NYSE:WSM • US9699041011
Current stock price
190.55 USD
-1.84 (-0.96%)
At close:
190.55 USD
0 (0%)
After Hours:
This WSM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WSM Profitability Analysis
1.1 Basic Checks
- In the past year WSM was profitable.
- In the past year WSM had a positive cash flow from operations.
- In the past 5 years WSM has always been profitable.
- In the past 5 years WSM always reported a positive cash flow from operatings.
1.2 Ratios
- WSM's Return On Assets of 20.11% is amongst the best of the industry. WSM outperforms 98.37% of its industry peers.
- With an excellent Return On Equity value of 52.26%, WSM belongs to the best of the industry, outperforming 95.94% of the companies in the same industry.
- WSM's Return On Invested Capital of 30.84% is amongst the best of the industry. WSM outperforms 96.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WSM is significantly above the industry average of 13.57%.
- The last Return On Invested Capital (30.84%) for WSM is above the 3 year average (30.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.11% | ||
| ROE | 52.26% | ||
| ROIC | 30.84% |
ROA(3y)19.78%
ROA(5y)21.58%
ROE(3y)49.81%
ROE(5y)56.68%
ROIC(3y)30.23%
ROIC(5y)33.27%
1.3 Margins
- WSM has a Profit Margin of 13.94%. This is amongst the best in the industry. WSM outperforms 96.75% 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 18.13%, WSM belongs to the top of the industry, outperforming 95.94% of the companies in the same industry.
- In the last couple of years the Operating Margin of WSM has grown nicely.
- WSM has a Gross Margin of 46.15%. This is in the better half of the industry: WSM outperforms 72.36% of its industry peers.
- WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.13% | ||
| PM (TTM) | 13.94% | ||
| GM | 46.15% |
OM growth 3Y1.67%
OM growth 5Y5.35%
PM growth 3Y2.35%
PM growth 5Y6.8%
GM growth 3Y2.87%
GM growth 5Y3.41%
2. WSM Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WSM 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 6.99. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.99, WSM belongs to the best of the industry, outperforming 94.31% of the companies in the same industry.
- 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 | 6.99 |
ROIC/WACC3.45
WACC8.95%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that WSM should not have too much problems paying its short term obligations.
- WSM has a Current ratio (1.39) which is comparable to the rest of the industry.
- WSM has a Quick Ratio of 1.39. This is a bad value and indicates that WSM is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of WSM (0.64) is comparable to the rest of the 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 | 1.39 | ||
| Quick Ratio | 0.64 |
3. WSM Growth Analysis
3.1 Past
- WSM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.49%.
- WSM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.36% yearly.
- WSM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.24%.
- Measured over the past years, WSM shows a small growth in Revenue. The Revenue has been growing by 2.85% on average per year.
EPS 1Y (TTM)1.49%
EPS 3Y2.18%
EPS 5Y14.36%
EPS Q2Q%-7.32%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y-3.45%
Revenue growth 5Y2.85%
Sales Q2Q%-4.27%
3.2 Future
- WSM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.13% yearly.
- Based on estimates for the next years, WSM will show a small growth in Revenue. The Revenue will grow by 3.88% on average per year.
EPS Next Y5.79%
EPS Next 2Y7.55%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue Next Year3.54%
Revenue Next 2Y4.02%
Revenue Next 3Y4.26%
Revenue Next 5Y3.88%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. WSM Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.53, WSM is valued on the expensive side.
- Based on the Price/Earnings ratio, WSM is valued a bit cheaper than 68.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.42, WSM is valued a bit cheaper.
- A Price/Forward Earnings ratio of 20.35 indicates a rather expensive valuation of WSM.
- 63.41% of the companies in the same industry are more expensive than WSM, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 22.24. WSM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 20.35 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WSM.
- WSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSM is cheaper than 64.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.49 | ||
| EV/EBITDA | 13.28 |
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)3.72
PEG (5Y)1.5
EPS Next 2Y7.55%
EPS Next 3Y8.39%
5. WSM Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.58%, WSM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.36, WSM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, WSM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
- The dividend of WSM has a limited annual growth rate of 4.95%.
- WSM has paid a dividend for at least 10 years, which is 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)4.95%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
- WSM pays out 29.08% 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.
DP29.08%
EPS Next 2Y7.55%
EPS Next 3Y8.39%
WSM Fundamentals: All Metrics, Ratios and Statistics
190.55
-1.84 (-0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-18 2026-03-18/bmo
Earnings (Next)05-20 2026-05-20/bmo
Inst Owners96.97%
Inst Owner Change-0.1%
Ins Owners0.31%
Ins Owner Change6.76%
Market Cap22.68B
Revenue(TTM)7.81B
Net Income(TTM)1.09B
Analysts71.11
Price Target208.74 (9.55%)
Short Float %5.79%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend2.62
Dividend Growth(5Y)4.95%
DP29.08%
Div Incr Years19
Div Non Decr Years19
Ex-Date04-17 2026-04-17 (0.76)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.94%
Min EPS beat(2)3.93%
Max EPS beat(2)3.94%
EPS beat(4)4
Avg EPS beat(4)5.44%
Min EPS beat(4)3.93%
Max EPS beat(4)9.71%
EPS beat(8)8
Avg EPS beat(8)9.54%
EPS beat(12)11
Avg EPS beat(12)8.56%
EPS beat(16)13
Avg EPS beat(16)8.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-3.48%
Max Revenue beat(2)-0.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-3.48%
Max Revenue beat(4)2.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.14%
Revenue beat(12)3
Avg Revenue beat(12)-1.16%
Revenue beat(16)6
Avg Revenue beat(16)-0.71%
PT rev (1m)-0.23%
PT rev (3m)2.94%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)1.53%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 20.35 | ||
| P/S | 2.91 | ||
| P/FCF | 21.49 | ||
| P/OCF | 17.25 | ||
| P/B | 10.89 | ||
| P/tB | 11.31 | ||
| EV/EBITDA | 13.28 |
EPS(TTM)8.85
EY4.64%
EPS(NY)9.36
Fwd EY4.91%
FCF(TTM)8.87
FCFY4.65%
OCF(TTM)11.05
OCFY5.8%
SpS65.59
BVpS17.5
TBVpS16.85
PEG (NY)3.72
PEG (5Y)1.5
Graham Number59.0271 (-69.02%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.11% | ||
| ROE | 52.26% | ||
| ROCE | 40.94% | ||
| ROIC | 30.84% | ||
| ROICexc | 43.75% | ||
| ROICexgc | 45.18% | ||
| OM | 18.13% | ||
| PM (TTM) | 13.94% | ||
| GM | 46.15% | ||
| FCFM | 13.52% |
ROA(3y)19.78%
ROA(5y)21.58%
ROE(3y)49.81%
ROE(5y)56.68%
ROIC(3y)30.23%
ROIC(5y)33.27%
ROICexc(3y)45.97%
ROICexc(5y)47%
ROICexgc(3y)47.62%
ROICexgc(5y)48.73%
ROCE(3y)40.13%
ROCE(5y)44.16%
ROICexgc growth 3Y1.14%
ROICexgc growth 5Y2.94%
ROICexc growth 3Y1.05%
ROICexc growth 5Y3.21%
OM growth 3Y1.67%
OM growth 5Y5.35%
PM growth 3Y2.35%
PM growth 5Y6.8%
GM growth 3Y2.87%
GM growth 5Y3.41%
F-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 112.09% | ||
| Cap/Sales | 3.32% | ||
| Interest Coverage | 2045.84 | ||
| Cash Conversion | 79.83% | ||
| Profit Quality | 96.97% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 6.99 |
F-Score5
WACC8.95%
ROIC/WACC3.45
Cap/Depr(3y)96.51%
Cap/Depr(5y)114.07%
Cap/Sales(3y)2.88%
Cap/Sales(5y)3.09%
Profit Quality(3y)118.41%
Profit Quality(5y)103.76%
High Growth Momentum
Growth
EPS 1Y (TTM)1.49%
EPS 3Y2.18%
EPS 5Y14.36%
EPS Q2Q%-7.32%
EPS Next Y5.79%
EPS Next 2Y7.55%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y-3.45%
Revenue growth 5Y2.85%
Sales Q2Q%-4.27%
Revenue Next Year3.54%
Revenue Next 2Y4.02%
Revenue Next 3Y4.26%
Revenue Next 5Y3.88%
EBIT growth 1Y-1.01%
EBIT growth 3Y-1.84%
EBIT growth 5Y8.35%
EBIT Next Year19.89%
EBIT Next 3Y10.26%
EBIT Next 5Y7.18%
FCF growth 1Y-7.31%
FCF growth 3Y14.74%
FCF growth 5Y-0.92%
OCF growth 1Y-3.33%
OCF growth 3Y7.69%
OCF growth 5Y0.62%
WILLIAMS-SONOMA INC / WSM Fundamental Analysis 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 for WSM stock?
ChartMill assigns a valuation rating of 4 / 10 to WILLIAMS-SONOMA INC (WSM). This can be considered as Fairly Valued.
Can you provide the profitability details for WILLIAMS-SONOMA INC?
WILLIAMS-SONOMA INC (WSM) has a profitability rating of 9 / 10.
What is the valuation of WILLIAMS-SONOMA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WILLIAMS-SONOMA INC (WSM) is 21.53 and the Price/Book (PB) ratio is 10.89.
How sustainable is the dividend of WILLIAMS-SONOMA INC (WSM) stock?
The dividend rating of WILLIAMS-SONOMA INC (WSM) is 7 / 10 and the dividend payout ratio is 29.08%.