WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
NYSE:WSM • US9699041011
211.84 USD
+5.05 (+2.44%)
Last: Feb 13, 2026, 02:54 PM
Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 120 industry peers in the Specialty Retail industry. WSM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WSM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WSM was profitable.
- In the past year WSM had a positive cash flow from operations.
- 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
- WSM has a Return On Assets of 20.81%. This is amongst the best in the industry. WSM outperforms 97.50% of its industry peers.
- With an excellent Return On Equity value of 53.45%, WSM belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
- The Return On Invested Capital of WSM (31.18%) is better than 96.67% 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 12.31%.
| 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
- The Profit Margin of WSM (13.97%) is better than 95.83% of its industry peers.
- WSM's Profit Margin has improved in the last couple of years.
- The Operating Margin of WSM (18.12%) is better than 95.00% of its industry peers.
- WSM's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 45.63%, WSM is in the better half of the industry, outperforming 71.67% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WSM 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.
- 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 7.53 indicates that WSM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of WSM (7.53) is better than 96.67% of its industry peers.
- 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.53 |
ROIC/WACC3.22
WACC9.67%
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's Current ratio of 1.43 is in line compared to the rest of the industry. WSM outperforms 59.17% of 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's Quick ratio of 0.60 is in line compared to the rest of the industry. WSM outperforms 58.33% 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 | 1.43 | ||
| 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.
- Looking at the last year, WSM shows a small growth in Revenue. The Revenue has grown by 5.10% in the last year.
- The Revenue has been growing slightly by 5.51% on average over the past years.
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
- Based on estimates for the next years, WSM will show a small growth in Earnings Per Share. The EPS will grow by 6.90% on average per year.
- 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
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 23.30, the valuation of WSM can be described as rather expensive.
- Based on the Price/Earnings ratio, WSM is valued a bit cheaper than 71.67% of the companies in the same industry.
- WSM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.67.
- Based on the Price/Forward Earnings ratio of 22.98, the valuation of WSM can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as WSM.
- WSM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 22.98 |
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 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.87 | ||
| EV/EBITDA | 14.32 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)35.57
PEG (5Y)0.8
EPS Next 2Y2.81%
EPS Next 3Y4.71%
5. Dividend
5.1 Amount
- WSM has a Yearly Dividend Yield of 1.28%.
- WSM's Dividend Yield is a higher than the industry average which is at 2.26.
- WSM's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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
- 27.85% 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.
DP27.85%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
NYSE:WSM (2/13/2026, 2:54:07 PM)
211.84
+5.05 (+2.44%)
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-2.11%
Ins Owners0.4%
Ins Owner Change-7.99%
Market Cap25.29B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target206.53 (-2.51%)
Short Float %7.96%
Short Ratio7.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)1.99%
PT rev (3m)-1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)0%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 22.98 | ||
| P/S | 3.2 | ||
| P/FCF | 22.87 | ||
| P/OCF | 18.71 | ||
| P/B | 12.23 | ||
| P/tB | 12.7 | ||
| EV/EBITDA | 14.32 |
EPS(TTM)9.09
EY4.29%
EPS(NY)9.22
Fwd EY4.35%
FCF(TTM)9.26
FCFY4.37%
OCF(TTM)11.32
OCFY5.34%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)35.57
PEG (5Y)0.8
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 | 7.53 |
F-Score6
WACC9.67%
ROIC/WACC3.22
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 23.3 and the Price/Book (PB) ratio is 12.23.
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.