Uncovering Dividend Opportunities with NYSE:WSM.

Last update: Nov 6, 2024

Discover WILLIAMS-SONOMA INC (NYSE:WSM)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:WSM showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

What does the Dividend looks like for NYSE:WSM

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:WSM was assigned a score of 7 for dividend:

WSM's Dividend Yield is rather good when compared to the industry average which is at 3.14. WSM pays more dividend than 80.17% of the companies in the same industry.
On average, the dividend of WSM grows each year by 6.72%, which is quite nice.
WSM has been paying a dividend for at least 10 years, so it has a reliable track record.
WSM has not decreased their dividend for at least 10 years, which is a reliable track record.
WSM pays out 23.23% of its income as dividend. This is a sustainable payout ratio.
The dividend of WSM is growing, but earnings are growing more, so the dividend growth is sustainable.

A Closer Look at Health for NYSE:WSM

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:WSM has achieved a 8 out of 10:

An Altman-Z score of 6.48 indicates that WSM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.48, WSM belongs to the top of the industry, outperforming 93.39% of the companies in the same industry.
There is no outstanding debt for WSM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
WSM's Current ratio of 1.56 is fine compared to the rest of the industry. WSM outperforms 61.98% of its industry peers.
Looking at the Quick ratio, with a value of 0.85, WSM is in the better half of the industry, outperforming 68.59% of the companies in the same industry.
The current and quick ratio evaluation for WSM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Profitability looks like for NYSE:WSM

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:WSM, the assigned 9 is a significant indicator of profitability:

WSM has a better Return On Assets (20.78%) than 97.52% of its industry peers.
The Return On Equity of WSM (48.14%) is better than 93.39% of its industry peers.
WSM has a better Return On Invested Capital (30.07%) than 96.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 12.32%.
The last Return On Invested Capital (30.07%) for WSM is well below the 3 year average (34.32%), which needs to be investigated, but indicates that WSM had better years and this may not be a problem.
Looking at the Profit Margin, with a value of 14.29%, WSM belongs to the top of the industry, outperforming 96.69% of the companies in the same industry.
WSM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.29%, WSM belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
In the last couple of years the Operating Margin of WSM has grown nicely.
The Gross Margin of WSM (46.16%) is better than 73.55% of its industry peers.
In the last couple of years the Gross Margin of WSM has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.