WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - NYSE:WSM - US9699041011 - Common Stock
193.6 USD
+1.71 (+0.89%)
WSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. WSM gets an excellent profitability rating and is at the same time showing great financial health properties. WSM has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years WSM has been profitable.
WSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WSM's Return On Assets of 21.28% is amongst the best of the industry. WSM outperforms 97.54% of its industry peers.
WSM has a Return On Equity of 51.76%. This is amongst the best in the industry. WSM outperforms 96.72% of its industry peers.
With an excellent Return On Invested Capital value of 31.16%, WSM belongs to the best of the industry, outperforming 96.72% of the companies in the same industry.
WSM had an Average Return On Invested Capital over the past 3 years of 32.30%. This is significantly above the industry average of 11.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.28% | ||
| ROE | 51.76% | ||
| ROIC | 31.16% |
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 Profit Margin of 14.21%. This is amongst the best in the industry. WSM outperforms 95.08% of its industry peers.
In the last couple of years the Profit Margin of WSM has grown nicely.
With an excellent Operating Margin value of 18.33%, WSM belongs to the best of the industry, outperforming 94.26% 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 45.77%, WSM is doing good in the industry, outperforming 72.13% of the companies in the same industry.
In the last couple of years the Gross Margin of WSM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.33% | ||
| PM (TTM) | 14.21% | ||
| GM | 45.77% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WSM is creating value.
Compared to 1 year ago, WSM has less shares outstanding
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
WSM has an Altman-Z score of 7.60. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.60, WSM belongs to the top of the industry, outperforming 96.72% 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 | 7.6 |
ROIC/WACC3.35
WACC9.29%
2.3 Liquidity
WSM has a Current Ratio of 1.50. This is a normal value and indicates that WSM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.50, WSM is doing good in the industry, outperforming 61.48% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that WSM may have some problems paying its short term obligations.
WSM has a Quick ratio of 0.69. This is comparable to the rest of the industry: WSM outperforms 59.84% 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 | 1.5 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.20% 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.
Looking at the last year, WSM shows a small growth in Revenue. The Revenue has grown by 3.28% in the last year.
The Revenue has been growing slightly by 5.51% on average over the past years.
EPS 1Y (TTM)13.2%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%14.94%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%2.71%
3.2 Future
Based on estimates for the next years, WSM will show a small growth in Earnings Per Share. The EPS will grow by 7.27% on average per year.
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y-0.42%
EPS Next 2Y2.95%
EPS Next 3Y5.5%
EPS Next 5Y7.27%
Revenue Next Year3.11%
Revenue Next 2Y3.17%
Revenue Next 3Y3.47%
Revenue Next 5Y3.95%
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
A Price/Earnings ratio of 21.30 indicates a rather expensive valuation of WSM.
68.03% of the companies in the same industry are more expensive than WSM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. WSM is around the same levels.
With a Price/Forward Earnings ratio of 20.95, WSM is valued on the expensive side.
WSM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, WSM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 20.95 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 68.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.94 | ||
| EV/EBITDA | 13.44 |
4.3 Compensation for Growth
The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y2.95%
EPS Next 3Y5.5%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.35%.
Compared to an average industry Dividend Yield of 5.58, WSM pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.35, WSM pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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 26.99% of its income as dividend. This is a sustainable payout ratio.
The dividend of WSM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26.99%
EPS Next 2Y2.95%
EPS Next 3Y5.5%
NYSE:WSM (11/13/2025, 9:50:00 AM)
193.6
+1.71 (+0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.33%
Inst Owner Change-0.21%
Ins Owners0.39%
Ins Owner Change-7.47%
Market Cap23.58B
Revenue(TTM)7.83B
Net Income(TTM)1.11B
Analysts71.43
Price Target208.62 (7.76%)
Short Float %5.64%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend2.23
Dividend Growth(5Y)2.89%
DP26.99%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.94%
Min EPS beat(2)4.18%
Max EPS beat(2)9.71%
EPS beat(4)4
Avg EPS beat(4)8.37%
Min EPS beat(4)4.18%
Max EPS beat(4)10.37%
EPS beat(8)8
Avg EPS beat(8)10.3%
EPS beat(12)9
Avg EPS beat(12)7.81%
EPS beat(16)13
Avg EPS beat(16)8.71%
Revenue beat(2)1
Avg Revenue beat(2)1.12%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)2.74%
Revenue beat(4)2
Avg Revenue beat(4)1.33%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)3.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)4
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.6%
PT rev (1m)0%
PT rev (3m)12.16%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 20.95 | ||
| P/S | 3.01 | ||
| P/FCF | 22.94 | ||
| P/OCF | 18.3 | ||
| P/B | 10.97 | ||
| P/tB | 11.38 | ||
| EV/EBITDA | 13.44 |
EPS(TTM)9.09
EY4.7%
EPS(NY)9.24
Fwd EY4.77%
FCF(TTM)8.44
FCFY4.36%
OCF(TTM)10.58
OCFY5.47%
SpS64.29
BVpS17.65
TBVpS17.02
PEG (NY)N/A
PEG (5Y)0.73
Graham Number60.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.28% | ||
| ROE | 51.76% | ||
| ROCE | 41.46% | ||
| ROIC | 31.16% | ||
| ROICexc | 43.56% | ||
| ROICexgc | 44.97% | ||
| OM | 18.33% | ||
| PM (TTM) | 14.21% | ||
| GM | 45.77% | ||
| FCFM | 13.13% |
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%
ROICexgc growth 3Y-3.39%
ROICexgc 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-Score7
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 113.59% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.4% | ||
| Profit Quality | 92.36% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 7.6 |
F-Score7
WACC9.29%
ROIC/WACC3.35
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)13.2%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%14.94%
EPS Next Y-0.42%
EPS Next 2Y2.95%
EPS Next 3Y5.5%
EPS Next 5Y7.27%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%2.71%
Revenue Next Year3.11%
Revenue Next 2Y3.17%
Revenue Next 3Y3.47%
Revenue Next 5Y3.95%
EBIT growth 1Y3.48%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year17.97%
EBIT Next 3Y8.71%
EBIT Next 5Y6.63%
FCF growth 1Y-5.34%
FCF growth 3Y-0.17%
FCF growth 5Y22.02%
OCF growth 1Y-6.91%
OCF growth 3Y-0.27%
OCF growth 5Y17.5%
WILLIAMS-SONOMA INC / WSM FAQ
Can you provide the ChartMill fundamental rating for WILLIAMS-SONOMA INC?
ChartMill assigns a fundamental rating of 7 / 10 to WSM.
Can you provide the valuation status for WILLIAMS-SONOMA INC?
ChartMill assigns a valuation rating of 4 / 10 to WILLIAMS-SONOMA INC (WSM). This can be considered as Fairly Valued.
How profitable is WILLIAMS-SONOMA INC (WSM) stock?
WILLIAMS-SONOMA INC (WSM) has a profitability rating of 9 / 10.
What are the PE and PB ratios of WILLIAMS-SONOMA INC (WSM) stock?
The Price/Earnings (PE) ratio for WILLIAMS-SONOMA INC (WSM) is 21.3 and the Price/Book (PB) ratio is 10.97.
What is the earnings growth outlook for WILLIAMS-SONOMA INC?
The Earnings per Share (EPS) of WILLIAMS-SONOMA INC (WSM) is expected to decline by -0.42% in the next year.