WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - NYSE:WSM - US9699041011 - Common Stock
184.03 USD
-5.26 (-2.78%)
We assign a fundamental rating of 7 out of 10 to WSM. WSM was compared to 122 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 has a decent growth rate and is not valued too expensively.
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.
WSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WSM (21.28%) is better than 98.36% of its industry peers.
With an excellent Return On Equity value of 51.76%, WSM belongs to the best of the industry, outperforming 96.72% of the companies in the same industry.
WSM has a better Return On Invested Capital (31.16%) than 96.72% 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 11.64%.
| 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's Profit Margin of 14.21% is amongst the best of the industry. WSM outperforms 96.72% of its industry peers.
WSM's Profit Margin has improved in the last couple of years.
WSM has a better Operating Margin (18.33%) than 95.90% of its industry peers.
In the last couple of years the Operating Margin of WSM has grown nicely.
WSM's Gross Margin of 45.77% is fine compared to the rest of the industry. WSM outperforms 72.13% of its industry peers.
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
WSM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for WSM has been reduced compared to 1 year ago.
WSM has more shares outstanding than it did 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 7.53. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.53, WSM belongs to the best 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 | 7.53 |
ROIC/WACC3.3
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.50 indicates that WSM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.50, WSM is doing good in the industry, outperforming 63.11% of the companies in the same industry.
WSM has a Quick Ratio of 1.50. 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 of 0.69. This is in the better half of the industry: WSM outperforms 63.11% 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
WSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.20%, which is quite good.
The Earnings Per Share has been growing by 29.28% on average over the past years. This is a very strong growth
WSM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.28%.
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)3.28%
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 7.27% yearly.
WSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y-0.37%
EPS Next 2Y2.98%
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 20.25 indicates a rather expensive valuation of WSM.
WSM's Price/Earnings ratio is a bit cheaper when compared to the industry. WSM is cheaper than 71.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.70. WSM is valued slightly cheaper when compared to this.
WSM is valuated rather expensively with a Price/Forward Earnings ratio of 19.90.
The rest of the industry has a similar Price/Forward Earnings ratio as WSM.
WSM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 19.9 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WSM.
Based on the Price/Free Cash Flow ratio, WSM is valued a bit cheaper than the industry average as 72.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.81 | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y2.98%
EPS Next 3Y5.5%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.35%.
WSM's Dividend Yield is a higher than the industry average which is at 5.68.
With a Dividend Yield of 1.35, WSM pays less dividend than the S&P500 average, which is at 2.44.
| 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 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)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 2Y2.98%
EPS Next 3Y5.5%
NYSE:WSM (10/10/2025, 2:35:16 PM)
184.03
-5.26 (-2.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.33%
Inst Owner Change0%
Ins Owners0.39%
Ins Owner Change-7.46%
Market Cap22.41B
Analysts71.43
Price Target208.62 (13.36%)
Short Float %5.4%
Short Ratio4.81
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)0.66%
PT rev (3m)13.85%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 19.9 | ||
| P/S | 2.86 | ||
| P/FCF | 21.81 | ||
| P/OCF | 17.39 | ||
| P/B | 10.43 | ||
| P/tB | 10.82 | ||
| EV/EBITDA | 13.25 |
EPS(TTM)9.09
EY4.94%
EPS(NY)9.25
Fwd EY5.03%
FCF(TTM)8.44
FCFY4.59%
OCF(TTM)10.58
OCFY5.75%
SpS64.29
BVpS17.65
TBVpS17.02
PEG (NY)N/A
PEG (5Y)0.69
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%
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-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 | 7.53 |
F-Score7
WACC9.43%
ROIC/WACC3.3
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-0.37%
EPS Next 2Y2.98%
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%