WILLIAMS-SONOMA INC (WSM) Fundamental Analysis & Valuation

NYSE:WSM • US9699041011

Current stock price

175.29 USD
-5.27 (-2.92%)
At close:
175.29 USD
0 (0%)
After Hours:

This WSM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. WSM Profitability Analysis

1.1 Basic Checks

  • WSM had positive earnings in the past year.
  • WSM had a positive operating cash flow in the past year.
  • In the past 5 years WSM has always been profitable.
  • In the past 5 years WSM always reported a positive cash flow from operatings.
WSM Yearly Net Income VS EBIT VS OCF VS FCFWSM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B

1.2 Ratios

  • With an excellent Return On Assets value of 20.11%, WSM belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
  • With an excellent Return On Equity value of 52.26%, WSM belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
  • WSM has a better Return On Invested Capital (30.84%) than 97.56% 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 13.27%.
  • The 3 year average ROIC (30.22%) for WSM is below the current ROIC(30.84%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 20.11%
ROE 52.26%
ROIC 30.84%
ROA(3y)19.78%
ROA(5y)21.58%
ROE(3y)49.81%
ROE(5y)56.68%
ROIC(3y)30.22%
ROIC(5y)33.26%
WSM Yearly ROA, ROE, ROICWSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60

1.3 Margins

  • The Profit Margin of WSM (13.94%) is better than 96.75% of its industry peers.
  • WSM's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 18.13%, WSM belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WSM has grown nicely.
  • WSM has a better Gross Margin (46.15%) than 71.54% of its industry peers.
  • In the last couple of years the Gross Margin of WSM has grown nicely.
Industry RankSector Rank
OM 18.13%
PM (TTM) 13.94%
GM 46.15%
OM growth 3Y1.63%
OM growth 5Y5.32%
PM growth 3Y2.35%
PM growth 5Y6.8%
GM growth 3Y2.87%
GM growth 5Y3.41%
WSM Yearly Profit, Operating, Gross MarginsWSM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40

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9

2. WSM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WSM is creating value.
  • Compared to 1 year ago, WSM has less shares outstanding
  • The number of shares outstanding for WSM has been increased compared to 5 years ago.
  • WSM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
WSM Yearly Shares OutstandingWSM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M 100M
WSM Yearly Total Debt VS Total AssetsWSM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B

2.2 Solvency

  • WSM has an Altman-Z score of 6.64. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of WSM (6.64) is better than 95.94% of its industry peers.
  • WSM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.64
ROIC/WACC3.4
WACC9.08%
WSM Yearly LT Debt VS Equity VS FCFWSM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 1.39 indicates that WSM should not have too much problems paying its short term obligations.
  • The Current ratio of WSM (1.39) is better than 60.16% of its industry peers.
  • WSM has a Quick Ratio of 1.39. This is a bad value and indicates that WSM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.64, WSM is in line with its industry, outperforming 54.47% of the companies in the same 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 RankSector Rank
Current Ratio 1.39
Quick Ratio 0.64
WSM Yearly Current Assets VS Current LiabilitesWSM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. WSM Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.49% over the past year.
  • Measured over the past years, WSM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.36% on average per year.
  • The Revenue has been growing slightly by 1.24% in the past year.
  • The Revenue has been growing slightly by 2.85% on average over the past years.
EPS 1Y (TTM)1.49%
EPS 3Y2.18%
EPS 5Y14.36%
EPS Q2Q%-7.32%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y-3.45%
Revenue growth 5Y2.85%
Sales Q2Q%-4.27%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.13% on average over the next years. This is quite good.
  • Based on estimates for the next years, WSM will show a small growth in Revenue. The Revenue will grow by 3.88% on average per year.
EPS Next Y4.19%
EPS Next 2Y6.42%
EPS Next 3Y8.37%
EPS Next 5Y8.13%
Revenue Next Year3.54%
Revenue Next 2Y3.83%
Revenue Next 3Y4.48%
Revenue Next 5Y3.88%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
WSM Yearly Revenue VS EstimatesWSM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
WSM Yearly EPS VS EstimatesWSM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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4

4. WSM Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.81, the valuation of WSM can be described as rather expensive.
  • Based on the Price/Earnings ratio, WSM is valued a bit cheaper than 71.54% of the companies in the same industry.
  • WSM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.89.
  • With a Price/Forward Earnings ratio of 19.01, WSM is valued on the expensive side.
  • WSM's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of WSM to the average of the S&P500 Index (22.19), we can say WSM is valued inline with the index average.
Industry RankSector Rank
PE 19.81
Fwd PE 19.01
WSM Price Earnings VS Forward Price EarningsWSM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • WSM's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, WSM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.83
EV/EBITDA 12.09
WSM Per share dataWSM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WSM does not grow enough to justify the current Price/Earnings ratio.
  • WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.72
PEG (5Y)1.38
EPS Next 2Y6.42%
EPS Next 3Y8.37%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. WSM Dividend Analysis

5.1 Amount

  • WSM has a Yearly Dividend Yield of 1.28%.
  • Compared to an average industry Dividend Yield of 2.75, WSM pays a bit more dividend than its industry peers.
  • WSM's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.28%

5.2 History

  • The dividend of WSM has a limited annual growth rate of 4.95%.
  • WSM has been paying a dividend for at least 10 years, so it has 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)4.95%
Div Incr Years18
Div Non Decr Years18
WSM Yearly Dividends per shareWSM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 29.08% 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.
DP29.08%
EPS Next 2Y6.42%
EPS Next 3Y8.37%
WSM Yearly Income VS Free CF VS DividendWSM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B
WSM Dividend Payout.WSM Dividend Payout, showing the Payout Ratio.WSM Dividend Payout.PayoutRetained Earnings

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WSM Fundamentals: All Metrics, Ratios and Statistics

WILLIAMS-SONOMA INC

NYSE:WSM (3/27/2026, 8:04:00 PM)

After market: 175.29 0 (0%)

175.29

-5.27 (-2.92%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-18
Earnings (Next)05-20
Inst Owners96.76%
Inst Owner Change-0.64%
Ins Owners0.26%
Ins Owner Change6.5%
Market Cap20.93B
Revenue(TTM)7.81B
Net Income(TTM)1.09B
Analysts71.85
Price Target209.49 (19.51%)
Short Float %6.27%
Short Ratio6.9
Dividend
Industry RankSector Rank
Dividend Yield 1.28%
Yearly Dividend2.62
Dividend Growth(5Y)4.95%
DP29.08%
Div Incr Years18
Div Non Decr Years18
Ex-Date01-16
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.94%
Min EPS beat(2)3.93%
Max EPS beat(2)3.94%
EPS beat(4)4
Avg EPS beat(4)5.44%
Min EPS beat(4)3.93%
Max EPS beat(4)9.71%
EPS beat(8)8
Avg EPS beat(8)9.54%
EPS beat(12)11
Avg EPS beat(12)8.56%
EPS beat(16)13
Avg EPS beat(16)8.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-3.48%
Max Revenue beat(2)-0.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-3.48%
Max Revenue beat(4)2.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.14%
Revenue beat(12)3
Avg Revenue beat(12)-1.16%
Revenue beat(16)6
Avg Revenue beat(16)-0.71%
PT rev (1m)0.13%
PT rev (3m)3.45%
EPS NQ rev (1m)-1.51%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE 19.81
Fwd PE 19.01
P/S 2.68
P/FCF 19.83
P/OCF 15.91
P/B 10.05
P/tB 10.44
EV/EBITDA 12.09
EPS(TTM)8.85
EY5.05%
EPS(NY)9.22
Fwd EY5.26%
FCF(TTM)8.84
FCFY5.04%
OCF(TTM)11.01
OCFY6.28%
SpS65.39
BVpS17.44
TBVpS16.8
PEG (NY)4.72
PEG (5Y)1.38
Graham Number58.94
Profitability
Industry RankSector Rank
ROA 20.11%
ROE 52.26%
ROCE 40.94%
ROIC 30.84%
ROICexc 43.75%
ROICexgc 45.18%
OM 18.13%
PM (TTM) 13.94%
GM 46.15%
FCFM 13.52%
ROA(3y)19.78%
ROA(5y)21.58%
ROE(3y)49.81%
ROE(5y)56.68%
ROIC(3y)30.22%
ROIC(5y)33.26%
ROICexc(3y)45.96%
ROICexc(5y)46.99%
ROICexgc(3y)47.6%
ROICexgc(5y)48.72%
ROCE(3y)40.12%
ROCE(5y)44.15%
ROICexgc growth 3Y1.1%
ROICexgc growth 5Y2.91%
ROICexc growth 3Y1.01%
ROICexc growth 5Y3.19%
OM growth 3Y1.63%
OM growth 5Y5.32%
PM growth 3Y2.35%
PM growth 5Y6.8%
GM growth 3Y2.87%
GM growth 5Y3.41%
F-Score5
Asset Turnover1.44
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 112.09%
Cap/Sales 3.32%
Interest Coverage 250
Cash Conversion 79.83%
Profit Quality 96.97%
Current Ratio 1.39
Quick Ratio 0.64
Altman-Z 6.64
F-Score5
WACC9.08%
ROIC/WACC3.4
Cap/Depr(3y)96.51%
Cap/Depr(5y)114.07%
Cap/Sales(3y)2.88%
Cap/Sales(5y)3.09%
Profit Quality(3y)118.41%
Profit Quality(5y)103.76%
High Growth Momentum
Growth
EPS 1Y (TTM)1.49%
EPS 3Y2.18%
EPS 5Y14.36%
EPS Q2Q%-7.32%
EPS Next Y4.19%
EPS Next 2Y6.42%
EPS Next 3Y8.37%
EPS Next 5Y8.13%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y-3.45%
Revenue growth 5Y2.85%
Sales Q2Q%-4.27%
Revenue Next Year3.54%
Revenue Next 2Y3.83%
Revenue Next 3Y4.48%
Revenue Next 5Y3.88%
EBIT growth 1Y-1.01%
EBIT growth 3Y-1.87%
EBIT growth 5Y8.33%
EBIT Next Year19.68%
EBIT Next 3Y9.6%
EBIT Next 5Y7.18%
FCF growth 1Y-7.31%
FCF growth 3Y14.74%
FCF growth 5Y-0.92%
OCF growth 1Y-3.33%
OCF growth 3Y7.69%
OCF growth 5Y0.62%

WILLIAMS-SONOMA INC / WSM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of WILLIAMS-SONOMA INC (WSM) stock?

ChartMill assigns a fundamental rating of 7 / 10 to WSM.


What is the valuation status of WILLIAMS-SONOMA INC (WSM) stock?

ChartMill assigns a valuation rating of 4 / 10 to WILLIAMS-SONOMA INC (WSM). This can be considered as Fairly Valued.


What is the profitability of WSM stock?

WILLIAMS-SONOMA INC (WSM) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for WSM stock?

The Price/Earnings (PE) ratio for WILLIAMS-SONOMA INC (WSM) is 19.81 and the Price/Book (PB) ratio is 10.05.


Can you provide the expected EPS growth for WSM stock?

The Earnings per Share (EPS) of WILLIAMS-SONOMA INC (WSM) is expected to grow by 4.19% in the next year.