WILLIAMS-SONOMA INC (WSM) Fundamental Analysis & Valuation
NYSE:WSM • US9699041011
Current stock price
198.69 USD
+7.19 (+3.75%)
At close:
199.193 USD
+0.5 (+0.25%)
After Hours:
This WSM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WSM Profitability Analysis
1.1 Basic Checks
- WSM had positive earnings in the past year.
- WSM had a positive operating cash flow in the past year.
- Each year in the past 5 years WSM has been profitable.
- WSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of WSM (20.11%) is better than 98.36% of its industry peers.
- With an excellent Return On Equity value of 52.26%, WSM belongs to the best of the industry, outperforming 95.90% of the companies in the same industry.
- WSM has a better Return On Invested Capital (30.84%) than 96.72% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 13.64%.
- The 3 year average ROIC (30.23%) for WSM is below the current ROIC(30.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.11% | ||
| ROE | 52.26% | ||
| ROIC | 30.84% |
ROA(3y)19.78%
ROA(5y)21.58%
ROE(3y)49.81%
ROE(5y)56.68%
ROIC(3y)30.23%
ROIC(5y)33.27%
1.3 Margins
- With an excellent Profit Margin value of 13.94%, WSM belongs to the best of the industry, outperforming 96.72% of the companies in the same industry.
- WSM's Profit Margin has improved in the last couple of years.
- WSM has a Operating Margin of 18.13%. This is amongst the best in the industry. WSM outperforms 95.90% of its industry peers.
- WSM's Operating Margin has improved in the last couple of years.
- WSM's Gross Margin of 46.15% is fine compared to the rest of the industry. WSM outperforms 73.77% of its industry peers.
- WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.13% | ||
| PM (TTM) | 13.94% | ||
| GM | 46.15% |
OM growth 3Y1.67%
OM growth 5Y5.35%
PM growth 3Y2.35%
PM growth 5Y6.8%
GM growth 3Y2.87%
GM growth 5Y3.41%
2. WSM Health Analysis
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.
- 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 6.97 indicates that WSM is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.97, WSM belongs to the top of the industry, outperforming 94.26% 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 | 6.97 |
ROIC/WACC3.47
WACC8.9%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that WSM should not have too much problems paying its short term obligations.
- WSM's Current ratio of 1.39 is in line compared to the rest of the industry. WSM outperforms 56.56% of its industry peers.
- WSM has a Quick Ratio of 1.39. 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's Quick ratio of 0.64 is in line compared to the rest of the industry. WSM outperforms 56.56% 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 | 1.39 | ||
| Quick Ratio | 0.64 |
3. WSM Growth Analysis
3.1 Past
- WSM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.49%.
- WSM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.36% yearly.
- WSM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.24%.
- Measured over the past years, WSM shows a small growth in Revenue. The Revenue has been growing by 2.85% on average per year.
EPS 1Y (TTM)1.49%
EPS 3Y2.18%
EPS 5Y14.36%
EPS Q2Q%-7.32%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y-3.45%
Revenue growth 5Y2.85%
Sales Q2Q%-4.27%
3.2 Future
- WSM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.13% yearly.
- The Revenue is expected to grow by 3.88% on average over the next years.
EPS Next Y5.79%
EPS Next 2Y7.55%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue Next Year3.52%
Revenue Next 2Y4.01%
Revenue Next 3Y4.26%
Revenue Next 5Y3.88%
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 accelerating.
4. WSM Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.45 indicates a rather expensive valuation of WSM.
- Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 66.39% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.87, WSM is valued at the same level.
- A Price/Forward Earnings ratio of 21.22 indicates a rather expensive valuation of WSM.
- Based on the Price/Forward Earnings ratio, WSM is valued a bit cheaper than 60.66% of the companies in the same industry.
- WSM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 38.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 21.22 |
4.2 Price Multiples
- WSM's Enterprise Value to EBITDA is on the same level as the industry average.
- 63.93% of the companies in the same industry are more expensive than WSM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.41 | ||
| EV/EBITDA | 13.22 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)3.88
PEG (5Y)1.56
EPS Next 2Y7.55%
EPS Next 3Y8.39%
5. WSM Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.58%, WSM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.33, WSM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, WSM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
- The dividend of WSM has a limited annual growth rate of 4.95%.
- WSM has paid a dividend for at least 10 years, which is 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)4.95%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
- 29.08% 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.
DP29.08%
EPS Next 2Y7.55%
EPS Next 3Y8.39%
WSM Fundamentals: All Metrics, Ratios and Statistics
198.69
+7.19 (+3.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-18 2026-03-18/bmo
Earnings (Next)05-20 2026-05-20/bmo
Inst Owners96.97%
Inst Owner Change-0.02%
Ins Owners0.31%
Ins Owner Change6.76%
Market Cap23.65B
Revenue(TTM)7.81B
Net Income(TTM)1.09B
Analysts71.11
Price Target208.74 (5.06%)
Short Float %5.79%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Yearly Dividend2.62
Dividend Growth(5Y)4.95%
DP29.08%
Div Incr Years19
Div Non Decr Years19
Ex-Date04-17 2026-04-17 (0.76)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.94%
Min EPS beat(2)3.93%
Max EPS beat(2)3.94%
EPS beat(4)4
Avg EPS beat(4)5.44%
Min EPS beat(4)3.93%
Max EPS beat(4)9.71%
EPS beat(8)8
Avg EPS beat(8)9.54%
EPS beat(12)11
Avg EPS beat(12)8.56%
EPS beat(16)13
Avg EPS beat(16)8.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-3.48%
Max Revenue beat(2)-0.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-3.48%
Max Revenue beat(4)2.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.14%
Revenue beat(12)3
Avg Revenue beat(12)-1.16%
Revenue beat(16)6
Avg Revenue beat(16)-0.71%
PT rev (1m)-0.23%
PT rev (3m)3.08%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-1.33%
EPS NY rev (1m)1.53%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 21.22 | ||
| P/S | 3.03 | ||
| P/FCF | 22.41 | ||
| P/OCF | 17.98 | ||
| P/B | 11.36 | ||
| P/tB | 11.79 | ||
| EV/EBITDA | 13.22 |
EPS(TTM)8.85
EY4.45%
EPS(NY)9.36
Fwd EY4.71%
FCF(TTM)8.87
FCFY4.46%
OCF(TTM)11.05
OCFY5.56%
SpS65.59
BVpS17.5
TBVpS16.85
PEG (NY)3.88
PEG (5Y)1.56
Graham Number59.0271 (-70.29%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.11% | ||
| ROE | 52.26% | ||
| ROCE | 40.94% | ||
| ROIC | 30.84% | ||
| ROICexc | 43.75% | ||
| ROICexgc | 45.18% | ||
| OM | 18.13% | ||
| PM (TTM) | 13.94% | ||
| GM | 46.15% | ||
| FCFM | 13.52% |
ROA(3y)19.78%
ROA(5y)21.58%
ROE(3y)49.81%
ROE(5y)56.68%
ROIC(3y)30.23%
ROIC(5y)33.27%
ROICexc(3y)45.97%
ROICexc(5y)47%
ROICexgc(3y)47.62%
ROICexgc(5y)48.73%
ROCE(3y)40.13%
ROCE(5y)44.16%
ROICexgc growth 3Y1.14%
ROICexgc growth 5Y2.94%
ROICexc growth 3Y1.05%
ROICexc growth 5Y3.21%
OM growth 3Y1.67%
OM growth 5Y5.35%
PM growth 3Y2.35%
PM growth 5Y6.8%
GM growth 3Y2.87%
GM growth 5Y3.41%
F-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 112.09% | ||
| Cap/Sales | 3.32% | ||
| Interest Coverage | 2045.84 | ||
| Cash Conversion | 79.83% | ||
| Profit Quality | 96.97% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 6.97 |
F-Score5
WACC8.9%
ROIC/WACC3.47
Cap/Depr(3y)96.51%
Cap/Depr(5y)114.07%
Cap/Sales(3y)2.88%
Cap/Sales(5y)3.09%
Profit Quality(3y)118.41%
Profit Quality(5y)103.76%
High Growth Momentum
Growth
EPS 1Y (TTM)1.49%
EPS 3Y2.18%
EPS 5Y14.36%
EPS Q2Q%-7.32%
EPS Next Y5.79%
EPS Next 2Y7.55%
EPS Next 3Y8.39%
EPS Next 5Y8.13%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y-3.45%
Revenue growth 5Y2.85%
Sales Q2Q%-4.27%
Revenue Next Year3.52%
Revenue Next 2Y4.01%
Revenue Next 3Y4.26%
Revenue Next 5Y3.88%
EBIT growth 1Y-1.01%
EBIT growth 3Y-1.84%
EBIT growth 5Y8.35%
EBIT Next Year19.89%
EBIT Next 3Y10.26%
EBIT Next 5Y7.18%
FCF growth 1Y-7.31%
FCF growth 3Y14.74%
FCF growth 5Y-0.92%
OCF growth 1Y-3.33%
OCF growth 3Y7.69%
OCF growth 5Y0.62%
WILLIAMS-SONOMA INC / WSM Fundamental Analysis FAQ
What is the ChartMill fundamental rating of WILLIAMS-SONOMA INC (WSM) stock?
ChartMill assigns a fundamental rating of 7 / 10 to WSM.
What is the valuation status for WSM stock?
ChartMill assigns a valuation rating of 4 / 10 to WILLIAMS-SONOMA INC (WSM). This can be considered as Fairly Valued.
Can you provide the profitability details for WILLIAMS-SONOMA INC?
WILLIAMS-SONOMA INC (WSM) has a profitability rating of 9 / 10.
What is the valuation of WILLIAMS-SONOMA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WILLIAMS-SONOMA INC (WSM) is 22.45 and the Price/Book (PB) ratio is 11.36.
How sustainable is the dividend of WILLIAMS-SONOMA INC (WSM) stock?
The dividend rating of WILLIAMS-SONOMA INC (WSM) is 7 / 10 and the dividend payout ratio is 29.08%.