WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - NYSE:WSM - US9699041011 - Common Stock
199.62 USD
+3.01 (+1.53%)
199.62 USD
0 (0%)
Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
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
The Return On Assets of WSM (21.15%) is better than 98.35% of its industry peers.
WSM has a Return On Equity of 50.47%. This is amongst the best in the industry. WSM outperforms 95.87% 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.
Measured over the past 3 years, the Average Return On Invested Capital for WSM is significantly above the industry average of 12.16%.
| 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.
WSM has a better Operating Margin (17.95%) than 95.04% of its industry peers.
WSM's Operating Margin has improved in the last couple of years.
WSM has a better Gross Margin (45.57%) than 72.73% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WSM is creating value.
The number of shares outstanding for WSM has been reduced compared to 1 year ago.
Compared to 5 years ago, WSM has more shares outstanding
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 7.85. 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 7.85, WSM belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
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 | 7.85 |
ROIC/WACC3.18
WACC9.62%
2.3 Liquidity
WSM has a Current Ratio of 1.51. 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 (1.51) is better than 63.64% of its industry peers.
A Quick Ratio of 0.73 indicates that WSM may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.73, WSM is doing good in the industry, outperforming 65.29% of the companies in the same 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 | 1.51 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.20% 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.
Looking at the last year, WSM shows a decrease in Revenue. The Revenue has decreased by -0.50% in the last year.
Measured over the past years, WSM shows a small growth in Revenue. The Revenue has been growing by 5.51% on average per year.
EPS 1Y (TTM)13.2%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%14.94%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%2.71%
3.2 Future
WSM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.20% yearly.
WSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y-0.67%
EPS Next 2Y2.65%
EPS Next 3Y5.29%
EPS Next 5Y7.2%
Revenue Next Year3.18%
Revenue Next 2Y3.12%
Revenue Next 3Y3.01%
Revenue Next 5Y3.59%
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 21.96, WSM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 71.90% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. WSM is around the same levels.
WSM is valuated rather expensively with a Price/Forward Earnings ratio of 21.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSM is on the same level as its industry peers.
WSM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 21.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WSM.
72.73% of the companies in the same industry are more expensive than WSM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.02 | ||
| EV/EBITDA | 14.08 |
4.3 Compensation for Growth
WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y2.65%
EPS Next 3Y5.29%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.30%.
Compared to an average industry Dividend Yield of 5.22, WSM pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.30, WSM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of WSM has a limited annual growth rate of 2.89%.
WSM has been paying a dividend for at least 10 years, so it has 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
26.76% of the earnings are spent on dividend by WSM. This is a low number and sustainable payout ratio.
WSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.76%
EPS Next 2Y2.65%
EPS Next 3Y5.29%
199.62
+3.01 (+1.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.83%
Inst Owner Change-0.34%
Ins Owners0.4%
Ins Owner Change2.91%
Market Cap24.31B
Analysts71.43
Price Target207.25 (3.82%)
Short Float %5.29%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)11.42%
PT rev (3m)12.93%
EPS NQ rev (1m)1.92%
EPS NQ rev (3m)2.16%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)1.29%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 21.73 | ||
| P/S | 3.12 | ||
| P/FCF | 24.02 | ||
| P/OCF | 19.41 | ||
| P/B | 11.25 | ||
| P/tB | 11.67 | ||
| EV/EBITDA | 14.08 |
EPS(TTM)9.09
EY4.55%
EPS(NY)9.19
Fwd EY4.6%
FCF(TTM)8.31
FCFY4.16%
OCF(TTM)10.28
OCFY5.15%
SpS63.89
BVpS17.75
TBVpS17.11
PEG (NY)N/A
PEG (5Y)0.75
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 | 7.85 |
F-Score8
WACC9.62%
ROIC/WACC3.18
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-0.67%
EPS Next 2Y2.65%
EPS Next 3Y5.29%
EPS Next 5Y7.2%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%2.71%
Revenue Next Year3.18%
Revenue Next 2Y3.12%
Revenue Next 3Y3.01%
Revenue Next 5Y3.59%
EBIT growth 1Y2.08%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year14.48%
EBIT Next 3Y8.63%
EBIT Next 5Y6.27%
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%