Exploring NYSE:WSM's dividend characteristics.

Our stock screener has spotted WILLIAMS-SONOMA INC (NYSE:WSM) as a good dividend stock with solid fundamentals. NYSE:WSM shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Unpacking NYSE:WSM's Dividend Rating

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:WSM has been awarded a 7 for its dividend quality:

• Compared to an average industry Dividend Yield of 4.33, WSM pays a bit more dividend than its industry peers.
• On average, the dividend of WSM grows each year by 6.72%, which is quite nice.
• 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.
• WSM pays out 24.36% 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

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:WSM scores a 8 out of 10:

• WSM has an Altman-Z score of 7.72. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 7.72, WSM belongs to the best of the industry, outperforming 98.31% of the companies in the same industry.
• WSM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:WSM has achieved a 9:

• With an excellent Return On Assets value of 22.04%, WSM belongs to the best of the industry, outperforming 99.15% of the companies in the same industry.
• With an excellent Return On Equity value of 57.42%, WSM belongs to the best of the industry, outperforming 94.92% of the companies in the same industry.
• WSM has a Return On Invested Capital of 33.38%. This is amongst the best in the industry. WSM outperforms 97.46% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for WSM is significantly above the industry average of 12.33%.
• With an excellent Profit Margin value of 14.54%, WSM belongs to the best of the industry, outperforming 97.46% of the companies in the same industry.
• WSM's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 18.50%, WSM belongs to the top of the industry, outperforming 95.76% of the companies in the same industry.
• In the last couple of years the Operating Margin of WSM has grown nicely.
• WSM's Gross Margin of 46.75% is fine compared to the rest of the industry. WSM outperforms 72.03% of its industry peers.
• WSM's Gross Margin has improved in the last couple of years.

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

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

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.