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Why Quality-Oriented Investors Should Consider NYSE:WSM.

By Mill Chart

Last update: Jan 2, 2024

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.

Why NYSE:WSM may be interesting for quality investors.

  • WILLIAMS-SONOMA INC has demonstrated significant revenue growth over the past 5 years, with a 10.39% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 42.17%, WILLIAMS-SONOMA INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • The Debt/Free Cash Flow Ratio of WILLIAMS-SONOMA INC stands at 0.0, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 113.0%, WILLIAMS-SONOMA INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • With a robust 5-year EBIT growth of 26.0%, WILLIAMS-SONOMA INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • WILLIAMS-SONOMA INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for NYSE:WSM?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to WSM. WSM was compared to 130 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making WSM a very profitable company, without any liquidiy or solvency issues. WSM has a correct valuation and a medium growth rate.

Check the latest full fundamental report of WSM for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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