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Reasonable growth and debt and a high ROIC for WILLIAMS-SONOMA INC (NYSE:WSM).

By Mill Chart

Last update: Sep 24, 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.


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Exploring Why NYSE:WSM Holds Appeal 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.
  • WILLIAMS-SONOMA INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 49.21% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • 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.
  • WILLIAMS-SONOMA INC has experienced impressive EBIT growth over the past 5 years, with 22.46% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • 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.

Fundamental analysis of NYSE:WSM

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 124 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. WSM also has an excellent dividend rating. These ratings could make WSM a good candidate for dividend investing.

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

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

Keep in mind

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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