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Why NYSE:WSM Stands Out as a Quality Stock.

By Mill Chart

Last update: Dec 11, 2023

In this article we will dive into WILLIAMS-SONOMA INC (NYSE:WSM) as a possible candidate for quality investing. Investors should always do their own research, but we noticed WILLIAMS-SONOMA INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NYSE:WSM.

  • WILLIAMS-SONOMA INC has achieved substantial revenue growth over the past 5 years, with a 10.39% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a robust ROIC excluding cash and goodwill at 42.17%, WILLIAMS-SONOMA INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • WILLIAMS-SONOMA INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • WILLIAMS-SONOMA INC exhibits impressive Profit Quality (5-year) with a 113.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • WILLIAMS-SONOMA INC has consistently achieved strong EBIT growth over the past 5 years, with a 26.0% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of WILLIAMS-SONOMA INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What is the full fundamental picture of NYSE:WSM telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

WSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 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 correct valuation and a medium growth rate.

For an up to date full fundamental analysis you can check the fundamental report of WSM

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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