Balancing Dividends and Fundamentals: The Case of NYSE:WSM.

Our stock screening tool has identified WILLIAMS-SONOMA INC (NYSE:WSM) as a strong dividend contender with robust fundamentals. NYSE:WSM exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Dividend Insights: NYSE:WSM

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:WSM has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.37, WSM pays a bit more dividend than its industry peers.
• The dividend of WSM is nicely growing with an annual growth rate of 6.72%!
• WSM has paid a dividend for at least 10 years, which is a reliable track record.
• WSM has not decreased their dividend for at least 10 years, which is a reliable track record.
• 24.36% of the earnings are spent on dividend by WSM. This is a low number and 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

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:WSM was assigned a score of 8 for health:

• An Altman-Z score of 7.47 indicates that WSM is not in any danger for bankruptcy at the moment.
• The Altman-Z score of WSM (7.47) is better than 95.04% of its industry peers.
• 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 does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Insights: 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 (22.04%) than 99.17% of its industry peers.
• The Return On Equity of WSM (57.42%) is better than 95.04% of its industry peers.
• With an excellent Return On Invested Capital value of 33.38%, WSM belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for WSM is significantly above the industry average of 12.03%.
• WSM has a Profit Margin of 14.54%. This is amongst the best in the industry. WSM outperforms 98.35% of its industry peers.
• In the last couple of years the Profit Margin of WSM has grown nicely.
• WSM has a Operating Margin of 18.50%. This is amongst the best in the industry. WSM outperforms 95.87% of its industry peers.
• WSM's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 46.75%, WSM is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
• 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.

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

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.