WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSM - US9699041011 - Common Stock
206.65 USD
-1.43 (-0.69%)
206.65 USD
0 (0%)
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 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
- With an excellent Return On Assets value of 20.81%, WSM belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
- WSM has a better Return On Equity (53.45%) than 95.08% of its industry peers.
- WSM has a Return On Invested Capital of 31.18%. This is amongst the best in the industry. WSM outperforms 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 12.24%.
| 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
- Looking at the Profit Margin, with a value of 13.97%, WSM belongs to the top of the industry, outperforming 95.90% of the companies in the same industry.
- In the last couple of years the Profit Margin of WSM has grown nicely.
- With an excellent Operating Margin value of 18.12%, WSM belongs to the best 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.
- The Gross Margin of WSM (45.63%) is better than 71.31% of its industry peers.
- 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
- WSM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for WSM has been reduced compared to 1 year ago.
- WSM has more shares outstanding than it did 5 years ago.
- WSM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- WSM has an Altman-Z score of 7.52. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
- WSM has a better Altman-Z score (7.52) than 95.90% 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 | 7.52 |
ROIC/WACC3.21
WACC9.72%
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 in line with its industry peers.
- WSM has a Quick Ratio of 1.43. 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 of 0.60. This is comparable to the rest of the industry: WSM outperforms 57.38% 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
- WSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.40%, which is quite good.
- 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 5.10% in the past 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
- The Earnings Per Share is expected to grow by 6.90% on average over the next years.
- WSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y0.66%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
EPS Next 5Y6.9%
Revenue Next Year3.45%
Revenue Next 2Y3.47%
Revenue Next 3Y3.66%
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.
- 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
- With a Price/Earnings ratio of 22.73, WSM is valued on the expensive side.
- Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 70.49% of the companies are valued more expensively.
- WSM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- WSM is valuated rather expensively with a Price/Forward Earnings ratio of 22.42.
- The rest of the industry has a similar Price/Forward Earnings ratio as WSM.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. WSM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 22.42 |
4.2 Price Multiples
- WSM's Enterprise Value to EBITDA is on the same level as the industry average.
- 69.67% 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 | 22.31 | ||
| EV/EBITDA | 14.31 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WSM does not grow enough to justify the current Price/Earnings ratio.
- WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)34.7
PEG (5Y)0.78
EPS Next 2Y2.81%
EPS Next 3Y4.71%
5. Dividend
5.1 Amount
- WSM has a Yearly Dividend Yield of 1.38%. 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 2.13.
- Compared to the average S&P500 Dividend Yield of 1.91, WSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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 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
- 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 2Y2.81%
EPS Next 3Y4.71%
206.65
-1.43 (-0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-19 2025-11-19/bmo
Earnings (Next)05-20 2026-05-20/bmo
Inst Owners96.79%
Inst Owner Change-0.02%
Ins Owners0.4%
Ins Owner Change-7.77%
Market Cap24.67B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target202.51 (-2%)
Short Float %6.75%
Short Ratio6.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend2.23
Dividend Growth(5Y)2.89%
DP27.85%
Div Incr Years18
Div Non Decr Years18
Ex-Date01-16 2026-01-16 (0.66)
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)0%
PT rev (3m)-2.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)0%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 22.42 | ||
| P/S | 3.12 | ||
| P/FCF | 22.31 | ||
| P/OCF | 18.25 | ||
| P/B | 11.93 | ||
| P/tB | 12.39 | ||
| EV/EBITDA | 14.31 |
EPS(TTM)9.09
EY4.4%
EPS(NY)9.22
Fwd EY4.46%
FCF(TTM)9.26
FCFY4.48%
OCF(TTM)11.32
OCFY5.48%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)34.7
PEG (5Y)0.78
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 | 7.52 |
F-Score6
WACC9.72%
ROIC/WACC3.21
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 2Y2.81%
EPS Next 3Y4.71%
EPS Next 5Y6.9%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y-2.21%
Revenue growth 5Y5.51%
Sales Q2Q%4.56%
Revenue Next Year3.45%
Revenue Next 2Y3.47%
Revenue Next 3Y3.66%
Revenue Next 5Y3.77%
EBIT growth 1Y2.96%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year18.76%
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
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 of WILLIAMS-SONOMA INC (WSM) stock?
ChartMill assigns a valuation rating of 4 / 10 to WILLIAMS-SONOMA INC (WSM). This can be considered as Fairly Valued.
What is the profitability of WSM stock?
WILLIAMS-SONOMA INC (WSM) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for WSM stock?
The Price/Earnings (PE) ratio for WILLIAMS-SONOMA INC (WSM) is 22.73 and the Price/Book (PB) ratio is 11.93.
Can you provide the expected EPS growth for WSM stock?
The Earnings per Share (EPS) of WILLIAMS-SONOMA INC (WSM) is expected to grow by 0.66% in the next year.