WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSM - US9699041011 - Common Stock
191.09 USD
+0.21 (+0.11%)
191.03 USD
-0.06 (-0.03%)
Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 123 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WSM had positive earnings in the past year.
WSM had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 20.81%, WSM belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
WSM has a Return On Equity of 53.45%. This is amongst the best in the industry. WSM outperforms 95.12% of its industry peers.
WSM's Return On Invested Capital of 31.18% is amongst the best of the industry. WSM outperforms 96.75% of its industry peers.
WSM had an Average Return On Invested Capital over the past 3 years of 32.30%. This is significantly above the industry average of 12.17%.
| 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
With an excellent Profit Margin value of 13.97%, WSM belongs to the best of the industry, outperforming 95.94% of the companies in the same industry.
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 94.31% of its industry peers.
WSM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.63%, WSM is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
WSM's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WSM 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.
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.
2.2 Solvency
An Altman-Z score of 7.18 indicates that WSM is not in any danger for bankruptcy at the moment.
WSM has a better Altman-Z score (7.18) 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.18 |
ROIC/WACC3.25
WACC9.59%
2.3 Liquidity
WSM has a Current Ratio of 1.43. 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 (1.43) which is comparable to the rest of the industry.
A Quick Ratio of 0.60 indicates that WSM may have some problems paying its short term obligations.
WSM's Quick ratio of 0.60 is in line compared to the rest of the industry. WSM outperforms 56.91% of its industry peers.
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 | 1.43 | ||
| 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
Looking at the last year, WSM shows a small growth in Revenue. The Revenue has grown by 5.10% in the last year.
Measured over the past years, WSM shows a small growth in Revenue. The Revenue has been growing by 5.51% on average per year.
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
Based on estimates for the next years, WSM will show a small growth in Earnings Per Share. The EPS will grow by 6.90% on average per year.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y0.66%
EPS Next 2Y2.79%
EPS Next 3Y4.92%
EPS Next 5Y6.9%
Revenue Next Year3.47%
Revenue Next 2Y3.47%
Revenue Next 3Y3.67%
Revenue Next 5Y3.77%
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
Based on the Price/Earnings ratio of 21.02, the valuation of WSM can be described as rather expensive.
Based on the Price/Earnings ratio, WSM is valued a bit cheaper than 73.17% 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 26.61.
The Price/Forward Earnings ratio is 20.74, which indicates a rather expensive current valuation of WSM.
WSM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WSM is cheaper than 63.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WSM to the average of the S&P500 Index (24.01), we can say WSM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 20.74 |
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 72.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.63 | ||
| EV/EBITDA | 13.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)32.09
PEG (5Y)0.72
EPS Next 2Y2.79%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, WSM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.98, WSM pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.87, WSM is paying slightly less dividend.
| 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 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
WSM pays out 27.85% of its income as dividend. This is a sustainable payout ratio.
WSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.85%
EPS Next 2Y2.79%
EPS Next 3Y4.92%
191.09
+0.21 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.67%
Inst Owner Change-0.71%
Ins Owners0.4%
Ins Owner Change-7.95%
Market Cap22.81B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target202.51 (5.98%)
Short Float %6.51%
Short Ratio6.46
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)-3.32%
PT rev (3m)-2.29%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)1.08%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 20.74 | ||
| P/S | 2.88 | ||
| P/FCF | 20.63 | ||
| P/OCF | 16.88 | ||
| P/B | 11.03 | ||
| P/tB | 11.46 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)9.09
EY4.76%
EPS(NY)9.21
Fwd EY4.82%
FCF(TTM)9.26
FCFY4.85%
OCF(TTM)11.32
OCFY5.92%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)32.09
PEG (5Y)0.72
Graham Number59.52
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 | 7.18 |
F-Score6
WACC9.59%
ROIC/WACC3.25
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 Y0.66%
EPS Next 2Y2.79%
EPS Next 3Y4.92%
EPS Next 5Y6.9%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%4.56%
Revenue Next Year3.47%
Revenue Next 2Y3.47%
Revenue Next 3Y3.67%
Revenue Next 5Y3.77%
EBIT growth 1Y2.96%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year18.69%
EBIT Next 3Y8.61%
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 21.02 and the Price/Book (PB) ratio is 11.03.
What is the earnings growth outlook for WILLIAMS-SONOMA INC?
The Earnings per Share (EPS) of WILLIAMS-SONOMA INC (WSM) is expected to grow by 0.66% in the next year.