WILLIAMS-SONOMA INC (WSM)
US9699041011 - Common Stock
Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 126 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making WSM a very profitable company, without any liquidiy or solvency issues. WSM has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WSM was profitable.
WSM had a positive operating cash flow in the past year.
Each year in the past 5 years WSM has 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 18.01%, WSM belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
WSM has a Return On Equity of 44.63%. This is amongst the best in the industry. WSM outperforms 92.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 27.99%, WSM belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
WSM had an Average Return On Invested Capital over the past 3 years of 34.32%. This is significantly above the industry average of 13.64%.
The 3 year average ROIC (34.32%) for WSM is well above the current ROIC(27.99%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.01% | ||
| ROE | 44.63% | ||
| ROIC | 27.99% |
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
WSM has a better Profit Margin (12.25%) than 96.03% 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 16.36%, WSM belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Operating Margin of WSM has grown nicely.
With a decent Gross Margin value of 42.62%, WSM is doing good in the industry, outperforming 67.46% of the companies in the same industry.
WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.36% | ||
| PM (TTM) | 12.25% | ||
| GM | 42.62% |
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
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.
Compared to 5 years ago, WSM has less shares outstanding
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
An Altman-Z score of 6.56 indicates that WSM is not in any danger for bankruptcy at the moment.
WSM has a better Altman-Z score (6.56) than 94.44% 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 | 6.56 |
ROIC/WACC3.07
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.45 indicates that WSM should not have too much problems paying its short term obligations.
WSM has a Current ratio (1.45) which is in line with its industry peers.
WSM has a Quick Ratio of 1.45. This is a bad value and indicates that WSM is not financially healthy enough and could expect problems in meeting its short term obligations.
WSM has a Quick ratio (0.78) which is in line with 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 | 1.45 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
WSM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.18%.
Measured over the past years, WSM shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.54% on average per year.
Looking at the last year, WSM shows a very negative growth in Revenue. The Revenue has decreased by -10.65% in the last year.
Measured over the past years, WSM shows a small growth in Revenue. The Revenue has been growing by 6.45% on average per year.
EPS 1Y (TTM)-12.18%
EPS 3Y17.2%
EPS 5Y26.54%
EPS growth Q2Q-1.09%
Revenue 1Y (TTM)-10.65%
Revenue growth 3Y4.54%
Revenue growth 5Y6.45%
Revenue growth Q2Q-7.1%
3.2 Future
Based on estimates for the next years, WSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.10% on average per year.
WSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.48% yearly.
EPS Next Y5.53%
EPS Next 2Y5.65%
EPS Next 3Y5.84%
EPS Next 5Y8.1%
Revenue Next Year0.26%
Revenue Next 2Y1.37%
Revenue Next 3Y2.47%
Revenue Next 5Y3.48%
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
The Price/Earnings ratio is 20.70, which indicates a rather expensive current valuation of WSM.
Compared to the rest of the industry, the Price/Earnings ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 63.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.11, WSM is valued a bit cheaper.
A Price/Forward Earnings ratio of 19.61 indicates a rather expensive valuation of WSM.
The rest of the industry has a similar Price/Forward Earnings ratio as WSM.
WSM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.7 | ||
| Fwd PE | 19.61 |
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 the industry average as 72.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)3.74
PEG (5Y)0.78
EPS Next 2Y5.65%
EPS Next 3Y5.84%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.55%.
Compared to an average industry Dividend Yield of 3.55, 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 | 1.55% |
5.2 History
The dividend of WSM is nicely growing with an annual growth rate of 15.61%!
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)15.61%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
24.48% of the earnings are spent on dividend by WSM. This is a low number and sustainable payout ratio.
The dividend of WSM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.48%
EPS Next 2Y5.65%
EPS Next 3Y5.84%
WILLIAMS-SONOMA INC
NYSE:WSM (5/8/2024, 12:08:26 PM)
301.55
-0.07 (-0.02%)
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 Cap19.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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(12)
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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 | 20.7 | ||
| Fwd PE | 19.61 | ||
| 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)3.74
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.01% | ||
| ROE | 44.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.36% | ||
| PM (TTM) | 12.25% | ||
| GM | 42.62% | ||
| 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 Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.78 | ||
| 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)
Growth
EPS 1Y (TTM)-12.18%
EPS 3Y17.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.65%
Revenue growth 3Y4.54%
Revenue growth 5Y
Revenue growth 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