WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - NYSE:WSM - US9699041011 - Common Stock
177.295 USD
-3.46 (-1.91%)
Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 122 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WSM was profitable.
WSM had a positive operating cash flow in the past year.
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
WSM has a Return On Assets of 21.28%. This is amongst the best in the industry. WSM outperforms 97.54% of its industry peers.
WSM has a better Return On Equity (51.76%) than 96.72% of its industry peers.
WSM has a better Return On Invested Capital (31.16%) than 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
WSM's Profit Margin of 14.21% is amongst the best of the industry. WSM outperforms 95.08% 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 18.33%, WSM belongs to the top of the industry, outperforming 94.26% of the companies in the same industry.
In the last couple of years the Operating Margin of WSM has grown nicely.
WSM has a Gross Margin of 45.77%. This is in the better half of the industry: WSM outperforms 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.
Compared to 5 years ago, WSM has more shares outstanding
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 7.33 indicates that WSM is not in any danger for bankruptcy at the moment.
WSM has a better Altman-Z score (7.33) than 96.72% 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 | 7.33 |
ROIC/WACC3.38
WACC9.22%
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 61.48% 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.
WSM has a Quick ratio (0.69) which 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.
WSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.28% yearly.
Looking at the last year, WSM shows a small growth in Revenue. The Revenue has grown by 3.28% in the last year.
WSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.51% yearly.
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.
Based on estimates for the next years, WSM will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
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.
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
Based on the Price/Earnings ratio of 19.50, the valuation of WSM can be described as rather expensive.
Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 68.03% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.51. WSM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 19.18, which indicates a rather expensive current valuation of WSM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSM is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WSM to the average of the S&P500 Index (34.98), we can say WSM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
WSM's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 68.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.01 | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.67
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.
WSM's Dividend Yield is a higher than the industry average which is at 5.60.
Compared to an average S&P500 Dividend Yield of 2.44, WSM's dividend is way lower than the S&P500 average.
| 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 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%
NYSE:WSM (11/19/2025, 2:58:01 PM)
177.295
-3.46 (-1.91%)
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 Cap21.59B
Revenue(TTM)7.83B
Net Income(TTM)1.11B
Analysts71.43
Price Target209.47 (18.15%)
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 | 19.5 | ||
| Fwd PE | 19.18 | ||
| P/S | 2.76 | ||
| P/FCF | 21.01 | ||
| P/OCF | 16.76 | ||
| P/B | 10.04 | ||
| P/tB | 10.42 | ||
| EV/EBITDA | 12.63 |
EPS(TTM)9.09
EY5.13%
EPS(NY)9.24
Fwd EY5.21%
FCF(TTM)8.44
FCFY4.76%
OCF(TTM)10.58
OCFY5.97%
SpS64.29
BVpS17.65
TBVpS17.02
PEG (NY)N/A
PEG (5Y)0.67
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 | 7.33 |
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 19.5 and the Price/Book (PB) ratio is 10.04.
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.