WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSM - US9699041011 - Common Stock
180.01 USD
-1.11 (-0.61%)
179.6 USD
-0.41 (-0.23%)
Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 122 industry peers in the Specialty Retail industry. WSM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WSM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WSM was profitable.
WSM had a positive operating cash flow in the past year.
Each year in the past 5 years WSM has been profitable.
Each year in the past 5 years WSM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 20.81%, WSM belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
The Return On Equity of WSM (53.45%) is better than 96.72% of its industry peers.
With an excellent Return On Invested Capital value of 31.18%, WSM belongs to the best of the industry, outperforming 97.54% 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 11.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.81% | ||
| ROE | 53.45% | ||
| ROIC | 31.18% |
ROA(3y)21.14%
ROA(5y)20.48%
ROE(3y)54.49%
ROE(5y)54.47%
ROIC(3y)32.3%
ROIC(5y)31.62%
1.3 Margins
WSM has a Profit Margin of 13.97%. This is amongst the best in the industry. WSM outperforms 95.90% of its industry peers.
WSM's Profit Margin has improved in the last couple of years.
WSM's Operating Margin of 18.12% is amongst the best of the industry. WSM outperforms 94.26% of its industry peers.
In the last couple of years the Operating Margin of WSM has grown nicely.
The Gross Margin of WSM (45.63%) is better than 72.95% of its industry peers.
In the last couple of years the Gross Margin of WSM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.12% | ||
| PM (TTM) | 13.97% | ||
| GM | 45.63% |
OM growth 3Y1.81%
OM growth 5Y18.68%
PM growth 3Y2.23%
PM growth 5Y19.3%
GM growth 3Y1.79%
GM growth 5Y5.07%
2. Health
2.1 Basic Checks
WSM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, WSM has less shares outstanding
Compared to 5 years ago, WSM has more shares outstanding
WSM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 6.97 indicates that WSM is not in any danger for bankruptcy at the moment.
WSM has a better Altman-Z score (6.97) than 95.90% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.97 |
ROIC/WACC3.33
WACC9.35%
2.3 Liquidity
A Current Ratio of 1.43 indicates that WSM should not have too much problems paying its short term obligations.
WSM has a Current ratio (1.43) which is in line with its industry peers.
A Quick Ratio of 0.60 indicates that WSM may have some problems paying its short term obligations.
The Quick ratio of WSM (0.60) is comparable to the rest 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.40% over the past year.
The Earnings Per Share has been growing by 29.28% on average over the past years. This is a very strong growth
WSM shows a small growth in Revenue. In the last year, the Revenue has grown by 5.10%.
The Revenue has been growing slightly by 5.51% on average over the past years.
EPS 1Y (TTM)11.4%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%0%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%4.56%
3.2 Future
The Earnings Per Share is expected to grow by 6.90% on average over the next years.
WSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y-0.42%
EPS Next 2Y2.95%
EPS Next 3Y5.11%
EPS Next 5Y6.9%
Revenue Next Year3.11%
Revenue Next 2Y3.17%
Revenue Next 3Y3.78%
Revenue Next 5Y3.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.80 indicates a rather expensive valuation of WSM.
Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 72.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, WSM is valued a bit cheaper.
WSM is valuated rather expensively with a Price/Forward Earnings ratio of 19.48.
WSM's Price/Forward Earnings ratio is in line with the industry average.
WSM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSM is on the same level as its industry peers.
WSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSM is cheaper than 71.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.6 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y2.95%
EPS Next 3Y5.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, WSM has a reasonable but not impressive dividend return.
WSM's Dividend Yield is a higher than the industry average which is at 5.66.
With a Dividend Yield of 1.35, WSM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of WSM has a limited annual growth rate of 2.89%.
WSM has paid a dividend for at least 10 years, which is a reliable track record.
WSM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.89%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
27.85% of the earnings are spent on dividend by WSM. This is a low number and sustainable payout ratio.
WSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.85%
EPS Next 2Y2.95%
EPS Next 3Y5.11%
180.01
-1.11 (-0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.33%
Inst Owner Change-0.76%
Ins Owners0.39%
Ins Owner Change-7.47%
Market Cap21.67B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.43
Price Target209.47 (16.37%)
Short Float %5.86%
Short Ratio6.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend2.23
Dividend Growth(5Y)2.89%
DP27.85%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.82%
Min EPS beat(2)3.94%
Max EPS beat(2)9.71%
EPS beat(4)4
Avg EPS beat(4)7.05%
Min EPS beat(4)3.94%
Max EPS beat(4)10.37%
EPS beat(8)8
Avg EPS beat(8)9.71%
EPS beat(12)10
Avg EPS beat(12)8.21%
EPS beat(16)13
Avg EPS beat(16)8.66%
Revenue beat(2)0
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)-0.06%
Revenue beat(4)2
Avg Revenue beat(4)1.42%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)3.5%
Revenue beat(8)3
Avg Revenue beat(8)0.43%
Revenue beat(12)3
Avg Revenue beat(12)-1.42%
Revenue beat(16)6
Avg Revenue beat(16)-0.74%
PT rev (1m)0.41%
PT rev (3m)11.13%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)0%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 19.48 | ||
| P/S | 2.74 | ||
| P/FCF | 19.6 | ||
| P/OCF | 16.04 | ||
| P/B | 10.48 | ||
| P/tB | 10.89 | ||
| EV/EBITDA | 12.5 |
EPS(TTM)9.09
EY5.05%
EPS(NY)9.24
Fwd EY5.13%
FCF(TTM)9.18
FCFY5.1%
OCF(TTM)11.22
OCFY6.24%
SpS65.71
BVpS17.18
TBVpS16.53
PEG (NY)N/A
PEG (5Y)0.68
Graham Number59.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.81% | ||
| ROE | 53.45% | ||
| ROCE | 41.48% | ||
| ROIC | 31.18% | ||
| ROICexc | 41.9% | ||
| ROICexgc | 43.2% | ||
| OM | 18.12% | ||
| PM (TTM) | 13.97% | ||
| GM | 45.63% | ||
| FCFM | 13.98% |
ROA(3y)21.14%
ROA(5y)20.48%
ROE(3y)54.49%
ROE(5y)54.47%
ROIC(3y)32.3%
ROIC(5y)31.62%
ROICexc(3y)45.42%
ROICexc(5y)45.62%
ROICexgc(3y)47.01%
ROICexgc(5y)47.4%
ROCE(3y)42.97%
ROCE(5y)42.71%
ROICexgc growth 3Y-3.39%
ROICexgc growth 5Y23.09%
ROICexc growth 3Y-3.15%
ROICexc growth 5Y23.27%
OM growth 3Y1.81%
OM growth 5Y18.68%
PM growth 3Y2.23%
PM growth 5Y19.3%
GM growth 3Y1.79%
GM growth 5Y5.07%
F-Score6
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 107.38% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.29% | ||
| Profit Quality | 100.04% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 6.97 |
F-Score6
WACC9.35%
ROIC/WACC3.33
Cap/Depr(3y)114.25%
Cap/Depr(5y)109.62%
Cap/Sales(3y)3.13%
Cap/Sales(5y)2.93%
Profit Quality(3y)106.74%
Profit Quality(5y)116.84%
High Growth Momentum
Growth
EPS 1Y (TTM)11.4%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%0%
EPS Next Y-0.42%
EPS Next 2Y2.95%
EPS Next 3Y5.11%
EPS Next 5Y6.9%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%4.56%
Revenue Next Year3.11%
Revenue Next 2Y3.17%
Revenue Next 3Y3.78%
Revenue Next 5Y3.77%
EBIT growth 1Y2.96%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year17.97%
EBIT Next 3Y8.5%
EBIT Next 5Y6.66%
FCF growth 1Y-9.01%
FCF growth 3Y-0.17%
FCF growth 5Y22.02%
OCF growth 1Y-8.05%
OCF growth 3Y-0.27%
OCF growth 5Y17.5%
WILLIAMS-SONOMA INC / WSM FAQ
Can you provide the ChartMill fundamental rating for WILLIAMS-SONOMA INC?
ChartMill assigns a fundamental rating of 7 / 10 to WSM.
Can you provide the valuation status for WILLIAMS-SONOMA INC?
ChartMill assigns a valuation rating of 4 / 10 to WILLIAMS-SONOMA INC (WSM). This can be considered as Fairly Valued.
How profitable is WILLIAMS-SONOMA INC (WSM) stock?
WILLIAMS-SONOMA INC (WSM) has a profitability rating of 9 / 10.
What are the PE and PB ratios of WILLIAMS-SONOMA INC (WSM) stock?
The Price/Earnings (PE) ratio for WILLIAMS-SONOMA INC (WSM) is 19.8 and the Price/Book (PB) ratio is 10.48.
What is the earnings growth outlook for WILLIAMS-SONOMA INC?
The Earnings per Share (EPS) of WILLIAMS-SONOMA INC (WSM) is expected to decline by -0.42% in the next year.