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

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.

Why NYSE:WSM may be interesting for quality investors.

• Over the past 5 years, WILLIAMS-SONOMA INC has experienced impressive revenue growth, with 6.45% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 46.99%, 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.
• WILLIAMS-SONOMA INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• The Profit Quality (5-year) of WILLIAMS-SONOMA INC stands at 120.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• WILLIAMS-SONOMA INC has consistently achieved strong EBIT growth over the past 5 years, with a 22.46% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• WILLIAMS-SONOMA INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What else is there to say on the fundamentals 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 119 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 is not valued too expensively and it also shows a decent growth rate. Finally WSM also has an excellent dividend rating. These ratings could make WSM a good candidate for dividend investing.

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.