Would Peter Lynch consider WILLIAMS-SONOMA INC (NYSE:WSM) a winning stock?

Peter Lynch favored companies with strong earnings growth, reasonable valuations, and solid financials. In this analysis, we’ll determine if WILLIAMS-SONOMA INC (NYSE:WSM) qualifies as a true Lynch-style investment.

Applying Peter Lynch’s stock selection rules to WILLIAMS-SONOMA INC (NYSE:WSM)

• The Return on Equity (ROE) of WSM stands at 57.42%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• With a Debt/Equity ratio of 0.0, WSM demonstrates prudent financial management.
• The 5-year EPS growth of WSM (29.28) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• With a PEG ratio of 0.55, WSM presents a compelling case for growth at a fair price.
• A Current Ratio of 1.35 indicates that WSM has a comfortable liquidity buffer.

Fundamental analysis of WSM

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to WSM. WSM was compared to 122 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 has a valuation in line with the averages, but it does not seem to be growing.

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

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

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.