Should Quality Investors Include NYSE:WSM in Their Portfolio?

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 shown strong performance in revenue growth over the past 5 years, with a 6.45% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 48.63%, 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.
• With a Debt/Free Cash Flow Ratio of 0.0, WILLIAMS-SONOMA INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• WILLIAMS-SONOMA INC demonstrates consistent Profit Quality over the past 5 years, with a strong 120.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• The 5-year EBIT growth of WILLIAMS-SONOMA INC has been remarkable, with 22.46% 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.

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

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, WSM scores 8 out of 10 in our fundamental rating. WSM was compared to 126 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make WSM suitable for value investing!

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.