WILLIAMS-SONOMA INC (WSM)

US9699041011 - Common Stock

222.575  -3.53 (-1.56%)

Fundamental Rating

7

Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 129 industry peers in the Specialty Retail industry. WSM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WSM is not valued too expensively and it also shows a decent growth rate.



9

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

The Return On Assets of WSM (19.46%) is better than 95.31% of its industry peers.
With an excellent Return On Equity value of 52.41%, WSM belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
WSM has a Return On Invested Capital of 31.59%. This is amongst the best in the industry. WSM outperforms 96.09% 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 12.91%.
Industry RankSector Rank
ROA 19.46%
ROE 52.41%
ROIC 31.59%
ROA(3y)21.05%
ROA(5y)16.76%
ROE(3y)58.4%
ROE(5y)46.58%
ROIC(3y)33.33%
ROIC(5y)26.93%

1.3 Margins

The Profit Margin of WSM (11.99%) is better than 96.09% of its industry peers.
WSM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 16.15%, WSM belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
WSM's Operating Margin has improved in the last couple of years.
The Gross Margin of WSM (41.20%) is better than 63.28% of its industry peers.
WSM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.15%
PM (TTM) 11.99%
GM 41.2%
OM growth 3Y29.8%
OM growth 5Y14.14%
PM growth 3Y29.14%
PM growth 5Y21.54%
GM growth 3Y5.34%
GM growth 5Y3.04%

9

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

WSM has an Altman-Z score of 5.82. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WSM (5.82) is better than 93.75% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.82
ROIC/WACC3.53
WACC8.94%

2.3 Liquidity

WSM has a Current Ratio of 1.31. This is a normal value and indicates that WSM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WSM (1.31) is comparable to the rest of the industry.
A Quick Ratio of 0.53 indicates that WSM may have some problems paying its short term obligations.
WSM has a Quick ratio (0.53) which 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 RankSector Rank
Current Ratio 1.31
Quick Ratio 0.53

4

3. Growth

3.1 Past

The earnings per share for WSM have decreased strongly by -11.39% in the last year.
The Earnings Per Share has been growing by 35.29% on average over the past years. This is a very strong growth
The Revenue has decreased by -9.14% in the past year.
Measured over the past years, WSM shows a quite strong growth in Revenue. The Revenue has been growing by 10.39% on average per year.
EPS 1Y (TTM)-11.39%
EPS 3Y50.88%
EPS 5Y35.29%
EPS growth Q2Q-1.61%
Revenue 1Y (TTM)-9.14%
Revenue growth 3Y13.72%
Revenue growth 5Y10.39%
Revenue growth Q2Q-15.46%

3.2 Future

The Earnings Per Share is expected to grow by 2.03% on average over the next years.
The Revenue is expected to grow by 0.02% on average over the next years.
EPS Next Y-11.47%
EPS Next 2Y-5.61%
EPS Next 3Y-1.92%
EPS Next 5Y2.03%
Revenue Next Year-12.73%
Revenue Next 2Y-7.24%
Revenue Next 3Y-3.94%
Revenue Next 5Y0.02%

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.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.21 indicates a correct valuation of WSM.
Based on the Price/Earnings ratio, WSM is valued a bit cheaper than 71.09% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.18. WSM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.06, WSM is valued correctly.
68.75% of the companies in the same industry are more expensive than WSM, based on the Price/Forward Earnings ratio.
WSM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.51.
Industry RankSector Rank
PE 15.21
Fwd PE 15.06

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 60.16% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 76.56% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.75
EV/EBITDA 9.19

4.3 Compensation for Growth

The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-5.61%
EPS Next 3Y-1.92%

6

5. Dividend

5.1 Amount

WSM has a Yearly Dividend Yield of 1.61%.
WSM's Dividend Yield is rather good when compared to the industry average which is at 3.31. WSM pays more dividend than 80.47% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.48, WSM is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.61%

5.2 History

The dividend of WSM is nicely growing with an annual growth rate of 14.77%!
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)14.77%
Div Incr Years17
Div Non Decr Years17

5.3 Sustainability

WSM pays out 23.85% of its income as dividend. This is a sustainable payout ratio.
The dividend of WSM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.85%
EPS Next 2Y-5.61%
EPS Next 3Y-1.92%

WILLIAMS-SONOMA INC

NYSE:WSM (2/20/2024, 10:55:07 AM)

222.575

-3.53 (-1.56%)

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 Cap14.28B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.61%
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 15.21
Fwd PE 15.06
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)N/A
PEG (5Y)0.43
Profitability
Industry RankSector Rank
ROA 19.46%
ROE 52.41%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.15%
PM (TTM) 11.99%
GM 41.2%
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 Turnover1.62
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.31
Quick Ratio 0.53
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)-11.39%
EPS 3Y50.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.14%
Revenue growth 3Y13.72%
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