WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - NYSE:WSM - US9699041011 - Common Stock
187.99 USD
-2.92 (-1.53%)
187.99 USD
0 (0%)
WSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 119 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
WSM had positive earnings in the past year.
In the past year WSM had a positive cash flow from operations.
In the past 5 years WSM has always been profitable.
WSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.28%, WSM belongs to the top of the industry, outperforming 97.48% of the companies in the same industry.
With an excellent Return On Equity value of 51.76%, WSM belongs to the best of the industry, outperforming 96.64% of the companies in the same industry.
The Return On Invested Capital of WSM (31.16%) is better than 95.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 12.29%.
| 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 95.80% of the companies in the same industry.
In the last couple of years the Profit Margin of WSM has grown nicely.
The Operating Margin of WSM (18.33%) is better than 94.96% of its industry peers.
In the last couple of years the Operating Margin of WSM has grown nicely.
Looking at the Gross Margin, with a value of 45.77%, WSM is in the better half of the industry, outperforming 72.27% of the companies in the same industry.
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.
WSM has more shares outstanding than it did 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
WSM has an Altman-Z score of 7.57. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.57, WSM belongs to the top of the industry, outperforming 96.64% 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 | 7.57 |
ROIC/WACC3.3
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.50 indicates that WSM should not have too much problems paying its short term obligations.
WSM has a better Current ratio (1.50) than 63.87% of its industry peers.
WSM has a Quick Ratio of 1.50. This is a bad value and indicates that WSM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WSM (0.69) is better than 62.18% 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 | 1.5 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.20% over the past year.
WSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.28% yearly.
The Revenue has been growing slightly by 3.28% in the past 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
Based on estimates for the next years, WSM will show a small growth in Earnings Per Share. The EPS will grow by 7.27% on average per year.
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y-0.37%
EPS Next 2Y2.98%
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
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.
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
A Price/Earnings ratio of 20.68 indicates a rather expensive valuation of WSM.
WSM's Price/Earnings ratio is a bit cheaper when compared to the industry. WSM is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of WSM to the average of the S&P500 Index (27.57), we can say WSM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 20.33, the valuation of WSM can be described as rather expensive.
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 (23.09), we can say WSM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 20.33 |
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 72.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.28 | ||
| EV/EBITDA | 13.37 |
4.3 Compensation for Growth
WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.71
EPS Next 2Y2.98%
EPS Next 3Y5.5%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.41%. Purely for dividend investing, there may be better candidates out there.
WSM's Dividend Yield is a higher than the industry average which is at 5.51.
Compared to the average S&P500 Dividend Yield of 2.32, WSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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
26.99% 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.
DP26.99%
EPS Next 2Y2.98%
EPS Next 3Y5.5%
187.99
-2.92 (-1.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.33%
Inst Owner Change0.1%
Ins Owners0.39%
Ins Owner Change-7.7%
Market Cap22.90B
Revenue(TTM)7.83B
Net Income(TTM)1.11B
Analysts71.43
Price Target208.62 (10.97%)
Short Float %5.4%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
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)0.66%
PT rev (3m)13.37%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 20.33 | ||
| P/S | 2.92 | ||
| P/FCF | 22.28 | ||
| P/OCF | 17.77 | ||
| P/B | 10.65 | ||
| P/tB | 11.05 | ||
| EV/EBITDA | 13.37 |
EPS(TTM)9.09
EY4.84%
EPS(NY)9.25
Fwd EY4.92%
FCF(TTM)8.44
FCFY4.49%
OCF(TTM)10.58
OCFY5.63%
SpS64.29
BVpS17.65
TBVpS17.02
PEG (NY)N/A
PEG (5Y)0.71
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 | 7.57 |
F-Score7
WACC9.43%
ROIC/WACC3.3
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-0.37%
EPS Next 2Y2.98%
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%