WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - NYSE:WSM - US9699041011 - Common Stock
199.695 USD
+3.63 (+1.85%)
Overall WSM gets a fundamental rating of 7 out of 10. We evaluated WSM 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.
WSM had a positive operating cash flow in the past year.
WSM had positive earnings in each of the past 5 years.
Each year in the past 5 years WSM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WSM (21.15%) is better than 98.35% of its industry peers.
WSM has a better Return On Equity (50.47%) than 95.87% of its industry peers.
WSM has a better Return On Invested Capital (30.57%) than 95.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 12.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 50.47% | ||
| ROIC | 30.57% |
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 has a Profit Margin of 14.02%. This is amongst the best in the industry. WSM outperforms 95.04% of its industry peers.
WSM's Profit Margin has improved in the last couple of years.
WSM has a Operating Margin of 17.95%. This is amongst the best in the industry. WSM outperforms 95.04% of its industry peers.
In the last couple of years the Operating Margin of WSM has grown nicely.
The Gross Margin of WSM (45.57%) is better than 72.73% of its industry peers.
WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.95% | ||
| PM (TTM) | 14.02% | ||
| GM | 45.57% |
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.
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 7.84 indicates that WSM is not in any danger for bankruptcy at the moment.
The Altman-Z score of WSM (7.84) is better than 95.04% 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 | 7.84 |
ROIC/WACC3.18
WACC9.61%
2.3 Liquidity
WSM has a Current Ratio of 1.51. 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 of 1.51. This is in the better half of the industry: WSM outperforms 63.64% of its industry peers.
WSM has a Quick Ratio of 1.51. 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 better Quick ratio (0.73) than 65.29% 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 | 1.51 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.20% 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
WSM shows a decrease in Revenue. In the last year, the revenue decreased by -0.50%.
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)-0.5%
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 7.20% on average per year.
Based on estimates for the next years, WSM will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-0.67%
EPS Next 2Y2.65%
EPS Next 3Y5.29%
EPS Next 5Y7.2%
Revenue Next Year3.18%
Revenue Next 2Y3.12%
Revenue Next 3Y3.01%
Revenue Next 5Y3.59%
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
The Price/Earnings ratio is 21.97, which indicates a rather expensive current valuation of WSM.
71.90% of the companies in the same industry are more expensive than WSM, based on the Price/Earnings ratio.
WSM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
WSM is valuated rather expensively with a Price/Forward Earnings ratio of 21.73.
WSM's Price/Forward Earnings ratio is in line with the industry average.
WSM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 21.73 |
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 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.03 | ||
| EV/EBITDA | 14.04 |
4.3 Compensation for Growth
The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y2.65%
EPS Next 3Y5.29%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.30%.
Compared to an average industry Dividend Yield of 5.21, WSM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, WSM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.89%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
26.76% 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.
DP26.76%
EPS Next 2Y2.65%
EPS Next 3Y5.29%
NYSE:WSM (9/17/2025, 10:26:10 AM)
199.695
+3.63 (+1.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.83%
Inst Owner Change-0.34%
Ins Owners0.4%
Ins Owner Change2.91%
Market Cap24.32B
Analysts71.43
Price Target207.25 (3.78%)
Short Float %5.29%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend2.23
Dividend Growth(5Y)2.89%
DP26.76%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.27%
Min EPS beat(2)4.18%
Max EPS beat(2)10.37%
EPS beat(4)4
Avg EPS beat(4)7.84%
Min EPS beat(4)4.18%
Max EPS beat(4)10.37%
EPS beat(8)8
Avg EPS beat(8)10.86%
EPS beat(12)9
Avg EPS beat(12)7.83%
EPS beat(16)13
Avg EPS beat(16)9.55%
Revenue beat(2)2
Avg Revenue beat(2)3.12%
Min Revenue beat(2)2.74%
Max Revenue beat(2)3.5%
Revenue beat(4)2
Avg Revenue beat(4)0.91%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)3.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)8
Avg Revenue beat(16)-0.15%
PT rev (1m)11.42%
PT rev (3m)12.93%
EPS NQ rev (1m)1.92%
EPS NQ rev (3m)2.16%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)1.29%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 21.73 | ||
| P/S | 3.13 | ||
| P/FCF | 24.03 | ||
| P/OCF | 19.42 | ||
| P/B | 11.25 | ||
| P/tB | 11.67 | ||
| EV/EBITDA | 14.04 |
EPS(TTM)9.09
EY4.55%
EPS(NY)9.19
Fwd EY4.6%
FCF(TTM)8.31
FCFY4.16%
OCF(TTM)10.28
OCFY5.15%
SpS63.89
BVpS17.75
TBVpS17.11
PEG (NY)N/A
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 50.47% | ||
| ROCE | 40.67% | ||
| ROIC | 30.57% | ||
| ROICexc | 43.97% | ||
| ROICexgc | 45.44% | ||
| OM | 17.95% | ||
| PM (TTM) | 14.02% | ||
| GM | 45.57% | ||
| FCFM | 13.01% |
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-Score8
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 104.84% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.01% | ||
| Profit Quality | 92.78% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 7.84 |
F-Score8
WACC9.61%
ROIC/WACC3.18
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-0.67%
EPS Next 2Y2.65%
EPS Next 3Y5.29%
EPS Next 5Y7.2%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%2.71%
Revenue Next Year3.18%
Revenue Next 2Y3.12%
Revenue Next 3Y3.01%
Revenue Next 5Y3.59%
EBIT growth 1Y2.08%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year14.48%
EBIT Next 3Y8.63%
EBIT Next 5Y6.27%
FCF growth 1Y15.28%
FCF growth 3Y-0.17%
FCF growth 5Y22.02%
OCF growth 1Y3.43%
OCF growth 3Y-0.27%
OCF growth 5Y17.5%