WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
NYSE:WSM - New York Stock Exchange, Inc. - US9699041011 - Common Stock - Currency: USD
WSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. WSM gets an excellent profitability rating and is at the same time showing great financial health properties. WSM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WSM had positive earnings in the past year.
In the past year WSM had a positive cash flow from operations.
WSM had positive earnings in each of the past 5 years.
In the past 5 years WSM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 21.22%, WSM belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
WSM has a Return On Equity of 52.52%. This is amongst the best in the industry. WSM outperforms 95.04% of its industry peers.
WSM has a Return On Invested Capital of 31.71%. This is amongst the best in the industry. WSM outperforms 95.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 14.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.22% | ||
| ROE | 52.52% | ||
| ROIC | 31.71% |
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's Profit Margin of 14.59% is amongst the best of the industry. WSM outperforms 96.69% of its industry peers.
WSM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.55%, WSM belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
In the last couple of years the Operating Margin of WSM has grown nicely.
The Gross Margin of WSM (46.45%) is better than 71.90% of its industry peers.
WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.55% | ||
| PM (TTM) | 14.59% | ||
| GM | 46.45% |
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
WSM has more shares outstanding than it did 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 6.22 indicates that WSM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.22, WSM belongs to the top of the industry, outperforming 94.21% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.22 |
ROIC/WACC3.5
WACC9.07%
2.3 Liquidity
WSM has a Current Ratio of 1.44. This is a normal value and indicates that WSM is financially healthy and should not expect problems in meeting its short term obligations.
WSM has a Current ratio (1.44) which is comparable to the rest of the industry.
WSM has a Quick Ratio of 1.44. This is a bad value and indicates that WSM is not financially healthy enough and could expect problems in meeting its short term obligations.
WSM has a Quick ratio of 0.74. This is in the better half of the industry: WSM outperforms 64.46% of its industry peers.
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 | 1.44 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
WSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.70%, which is quite good.
The Earnings Per Share has been growing by 29.28% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.50% in the past year.
The Revenue has been growing slightly by 5.51% on average over the past years.
EPS 1Y (TTM)19.7%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%20.59%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%8.04%
3.2 Future
WSM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.32% yearly.
The Revenue is expected to grow by 3.52% on average over the next years.
EPS Next Y-1.26%
EPS Next 2Y2.77%
EPS Next 3Y4.64%
EPS Next 5Y7.32%
Revenue Next Year1.08%
Revenue Next 2Y2.13%
Revenue Next 3Y2.64%
Revenue Next 5Y3.52%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WSM is valuated correctly with a Price/Earnings ratio of 15.96.
Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 71.07% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WSM to the average of the S&P500 Index (28.29), we can say WSM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.17, WSM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 64.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, WSM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 16.17 |
4.2 Price Multiples
WSM's Enterprise Value to EBITDA is on the same level as the industry average.
WSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSM is cheaper than 71.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.1 | ||
| EV/EBITDA | 9.63 |
4.3 Compensation for Growth
WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y2.77%
EPS Next 3Y4.64%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.79%. Purely for dividend investing, there may be better candidates out there.
The stock price of WSM dropped by -31.37% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
WSM's Dividend Yield is a higher than the industry average which is at 5.44.
WSM's Dividend Yield is slightly below the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.89%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
24.89% 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.
DP24.89%
EPS Next 2Y2.77%
EPS Next 3Y4.64%
139.21
+1.59 (+1.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.52%
Inst Owner Change0%
Ins Owners0.36%
Ins Owner Change2.5%
Market Cap17.19B
Analysts66.21
Price Target183.49 (31.81%)
Short Float %7.66%
Short Ratio6.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend2.23
Dividend Growth(5Y)2.89%
DP24.89%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.8%
Min EPS beat(2)9.24%
Max EPS beat(2)10.37%
EPS beat(4)4
Avg EPS beat(4)13.65%
Min EPS beat(4)7.59%
Max EPS beat(4)27.39%
EPS beat(8)7
Avg EPS beat(8)10.12%
EPS beat(12)9
Avg EPS beat(12)9.11%
EPS beat(16)13
Avg EPS beat(16)12.96%
Revenue beat(2)1
Avg Revenue beat(2)1.55%
Min Revenue beat(2)-0.41%
Max Revenue beat(2)3.5%
Revenue beat(4)1
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)3.5%
Revenue beat(8)2
Avg Revenue beat(8)-1.58%
Revenue beat(12)5
Avg Revenue beat(12)-0.84%
Revenue beat(16)8
Avg Revenue beat(16)0.54%
PT rev (1m)-3.31%
PT rev (3m)4.81%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)-0.91%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 16.17 | ||
| P/S | 2.23 | ||
| P/FCF | 15.1 | ||
| P/OCF | 12.64 | ||
| P/B | 8.03 | ||
| P/tB | 8.33 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)8.72
EY6.26%
EPS(NY)8.61
Fwd EY6.18%
FCF(TTM)9.22
FCFY6.62%
OCF(TTM)11.01
OCFY7.91%
SpS62.44
BVpS17.35
TBVpS16.72
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.22% | ||
| ROE | 52.52% | ||
| ROCE | 42.19% | ||
| ROIC | 31.71% | ||
| ROICexc | 49.39% | ||
| ROICexgc | 51.2% | ||
| OM | 18.55% | ||
| PM (TTM) | 14.59% | ||
| GM | 46.45% | ||
| FCFM | 14.77% |
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%
ROICexcg growth 3Y-3.39%
ROICexcg 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 Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 96.42% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 1684.55 | ||
| Cash Conversion | 81.94% | ||
| Profit Quality | 101.19% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 6.22 |
F-Score7
WACC9.07%
ROIC/WACC3.5
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)19.7%
EPS 3Y5.36%
EPS 5Y29.28%
EPS Q2Q%20.59%
EPS Next Y-1.26%
EPS Next 2Y2.77%
EPS Next 3Y4.64%
EPS Next 5Y7.32%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%8.04%
Revenue Next Year1.08%
Revenue Next 2Y2.13%
Revenue Next 3Y2.64%
Revenue Next 5Y3.52%
EBIT growth 1Y14.95%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year14.05%
EBIT Next 3Y7.49%
EBIT Next 5Y6.2%
FCF growth 1Y-23.67%
FCF growth 3Y-0.17%
FCF growth 5Y22.02%
OCF growth 1Y-19.05%
OCF growth 3Y-0.27%
OCF growth 5Y17.5%