WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - NYSE:WSM - US9699041011 - Common Stock
180.75 USD
-0.57 (-0.31%)
179.95 USD
-0.8 (-0.44%)
Overall WSM gets a fundamental rating of 7 out of 10. We evaluated WSM against 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WSM was profitable.
In the past year WSM had a positive cash flow from operations.
WSM had positive earnings in each of the past 5 years.
WSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WSM (21.28%) is better than 97.54% of its industry peers.
WSM's Return On Equity of 51.76% is amongst the best of the industry. WSM outperforms 96.72% of its industry peers.
WSM's Return On Invested Capital of 31.16% is amongst the best of the industry. WSM outperforms 96.72% 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 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.28% | ||
| ROE | 51.76% | ||
| ROIC | 31.16% |
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
Looking at the Profit Margin, with a value of 14.21%, WSM belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
WSM's Profit Margin has improved in the last couple of years.
The Operating Margin of WSM (18.33%) is better than 94.26% of its industry peers.
WSM's Operating Margin has improved in the last couple of years.
WSM has a better Gross Margin (45.77%) than 72.13% of its industry peers.
In the last couple of years the Gross Margin of WSM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.33% | ||
| PM (TTM) | 14.21% | ||
| GM | 45.77% |
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.
WSM has less shares outstanding than it did 1 year ago.
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.
2.2 Solvency
An Altman-Z score of 7.35 indicates that WSM is not in any danger for bankruptcy at the moment.
WSM's Altman-Z score of 7.35 is amongst the best of the industry. WSM outperforms 96.72% 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 | 7.35 |
ROIC/WACC3.38
WACC9.22%
2.3 Liquidity
WSM has a Current Ratio of 1.50. This is a normal value and indicates that WSM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WSM (1.50) is better than 61.48% of its industry peers.
A Quick Ratio of 0.69 indicates that WSM may have some problems paying its short term obligations.
The Quick ratio of WSM (0.69) is comparable to the rest of the industry.
The current and quick ratio evaluation for WSM is rather negative, while it does have 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 | 1.5 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.20% over the past year.
Measured over the past years, WSM shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.28% on average per year.
Looking at the last year, WSM shows a small growth in Revenue. The Revenue has grown by 3.28% in the last year.
The Revenue has been growing slightly by 5.51% on average over the past years.
EPS 1Y (TTM)13.2%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%14.94%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%2.71%
3.2 Future
The Earnings Per Share is expected to grow by 7.27% on average over the next years.
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y-0.42%
EPS Next 2Y2.95%
EPS Next 3Y5.5%
EPS Next 5Y7.27%
Revenue Next Year3.11%
Revenue Next 2Y3.17%
Revenue Next 3Y3.47%
Revenue Next 5Y3.95%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.88, which indicates a rather expensive current valuation of WSM.
Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
WSM is valuated rather cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.56 indicates a rather expensive valuation of WSM.
The rest of the industry has a similar Price/Forward Earnings ratio as WSM.
WSM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
WSM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WSM is valued a bit cheaper than 68.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.42 | ||
| EV/EBITDA | 12.67 |
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 3Y5.5%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.60, WSM pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.35, WSM pays less dividend than the S&P500 average, which is at 2.44.
| 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 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)2.89%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
WSM pays out 26.99% 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.
DP26.99%
EPS Next 2Y2.95%
EPS Next 3Y5.5%
180.75
-0.57 (-0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.33%
Inst Owner Change-0.78%
Ins Owners0.39%
Ins Owner Change-11.85%
Market Cap22.01B
Revenue(TTM)7.83B
Net Income(TTM)1.11B
Analysts71.43
Price Target208.62 (15.42%)
Short Float %5.86%
Short Ratio6.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend2.23
Dividend Growth(5Y)2.89%
DP26.99%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.94%
Min EPS beat(2)4.18%
Max EPS beat(2)9.71%
EPS beat(4)4
Avg EPS beat(4)8.37%
Min EPS beat(4)4.18%
Max EPS beat(4)10.37%
EPS beat(8)8
Avg EPS beat(8)10.3%
EPS beat(12)9
Avg EPS beat(12)7.81%
EPS beat(16)13
Avg EPS beat(16)8.71%
Revenue beat(2)1
Avg Revenue beat(2)1.12%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)2.74%
Revenue beat(4)2
Avg Revenue beat(4)1.33%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)3.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)4
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.6%
PT rev (1m)0%
PT rev (3m)12.16%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-3.12%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 19.56 | ||
| P/S | 2.81 | ||
| P/FCF | 21.42 | ||
| P/OCF | 17.08 | ||
| P/B | 10.24 | ||
| P/tB | 10.62 | ||
| EV/EBITDA | 12.67 |
EPS(TTM)9.09
EY5.03%
EPS(NY)9.24
Fwd EY5.11%
FCF(TTM)8.44
FCFY4.67%
OCF(TTM)10.58
OCFY5.85%
SpS64.29
BVpS17.65
TBVpS17.02
PEG (NY)N/A
PEG (5Y)0.68
Graham Number60.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.28% | ||
| ROE | 51.76% | ||
| ROCE | 41.46% | ||
| ROIC | 31.16% | ||
| ROICexc | 43.56% | ||
| ROICexgc | 44.97% | ||
| OM | 18.33% | ||
| PM (TTM) | 14.21% | ||
| GM | 45.77% | ||
| FCFM | 13.13% |
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-Score7
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 113.59% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.4% | ||
| Profit Quality | 92.36% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 7.35 |
F-Score7
WACC9.22%
ROIC/WACC3.38
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)13.2%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%14.94%
EPS Next Y-0.42%
EPS Next 2Y2.95%
EPS Next 3Y5.5%
EPS Next 5Y7.27%
Revenue 1Y (TTM)3.28%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%2.71%
Revenue Next Year3.11%
Revenue Next 2Y3.17%
Revenue Next 3Y3.47%
Revenue Next 5Y3.95%
EBIT growth 1Y3.48%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year17.97%
EBIT Next 3Y8.71%
EBIT Next 5Y6.63%
FCF growth 1Y-5.34%
FCF growth 3Y-0.17%
FCF growth 5Y22.02%
OCF growth 1Y-6.91%
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 19.88 and the Price/Book (PB) ratio is 10.24.
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.