WILLIAMS-SONOMA INC (NYSE:WSM) can be considered a quality stock. Here's why.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if WILLIAMS-SONOMA INC (NYSE:WSM) is suited for quality investing. Investors should of course do their own research, but we spotted WILLIAMS-SONOMA INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into WILLIAMS-SONOMA INC's Quality Metrics.

• WILLIAMS-SONOMA INC has shown strong performance in revenue growth over the past 5 years, with a 10.39% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• WILLIAMS-SONOMA INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 42.17% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a favorable Debt/Free Cash Flow Ratio of 0.0, WILLIAMS-SONOMA INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• 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.
• The 5-year EBIT growth of WILLIAMS-SONOMA INC has been remarkable, with 26.0% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, WILLIAMS-SONOMA INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

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

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

WSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 128 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 has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of WSM contains the most current fundamental analsysis.

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.