WILLIAMS-SONOMA INC (WSM)
US9699041011 - Common Stock
Overall WSM gets a fundamental rating of 7 out of 10. We evaluated WSM against 123 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. Finally WSM also has an excellent dividend rating. This makes WSM very considerable for dividend and quality investing!
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.
In the past 5 years WSM has always been profitable.
In the past 5 years WSM always reported a positive cash flow from operatings.
1.2 Ratios
WSM has a better Return On Assets (20.78%) than 97.52% of its industry peers.
WSM has a better Return On Equity (48.14%) than 93.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.07%, WSM belongs to the top of the industry, outperforming 96.69% of the companies in the same industry.
WSM had an Average Return On Invested Capital over the past 3 years of 34.32%. This is significantly above the industry average of 12.26%.
The last Return On Invested Capital (30.07%) for WSM is well below the 3 year average (34.32%), which needs to be investigated, but indicates that WSM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.78% | ||
| ROE | 48.14% | ||
| ROIC | 30.07% |
ROA(3y)22.18%
ROA(5y)17.99%
ROE(3y)59.54%
ROE(5y)49.73%
ROIC(3y)34.32%
ROIC(5y)28.01%
1.3 Margins
WSM's Profit Margin of 14.29% is amongst the best of the industry. WSM outperforms 96.69% of its industry peers.
In the last couple of years the Profit Margin of WSM has grown nicely.
With an excellent Operating Margin value of 18.29%, WSM belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
In the last couple of years the Operating Margin of WSM has grown nicely.
WSM has a better Gross Margin (46.16%) than 73.55% of its industry peers.
WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.29% | ||
| PM (TTM) | 14.29% | ||
| GM | 46.16% |
OM growth 3Y5.09%
OM growth 5Y15.04%
PM growth 3Y6.89%
PM growth 5Y15.8%
GM growth 3Y2.98%
GM growth 5Y2.85%
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 more 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 7.50 indicates that WSM is not in any danger for bankruptcy at the moment.
WSM's Altman-Z score of 7.50 is amongst the best of the industry. WSM outperforms 95.04% 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 | 7.5 |
ROIC/WACC3.16
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.56 indicates that WSM should not have too much problems paying its short term obligations.
The Current ratio of WSM (1.56) is better than 61.98% of its industry peers.
A Quick Ratio of 0.85 indicates that WSM may have some problems paying its short term obligations.
WSM's Quick ratio of 0.85 is fine compared to the rest of the industry. WSM outperforms 70.25% 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 | 1.56 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.33% over the past year.
WSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.54% yearly.
WSM shows a decrease in Revenue. In the last year, the revenue decreased by -8.26%.
WSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
EPS 1Y (TTM)9.33%
EPS 3Y17.2%
EPS 5Y26.54%
EPS Q2Q%11.54%
Revenue 1Y (TTM)-8.26%
Revenue growth 3Y4.54%
Revenue growth 5Y6.45%
Sales Q2Q%-3.99%
3.2 Future
Based on estimates for the next years, WSM will show a very strong growth in Earnings Per Share. The EPS will grow by 25.75% on average per year.
The Revenue is expected to grow by 3.36% on average over the next years.
EPS Next Y13.67%
EPS Next 2Y6.3%
EPS Next 3Y6.49%
EPS Next 5Y25.75%
Revenue Next Year-2.03%
Revenue Next 2Y-0.52%
Revenue Next 3Y0.85%
Revenue Next 5Y3.36%
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 stable.
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
A Price/Earnings ratio of 21.35 indicates a rather expensive valuation of WSM.
Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 65.29% of the companies are valued more expensively.
WSM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.82, WSM is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as WSM.
When comparing the Price/Forward Earnings ratio of WSM to the average of the S&P500 Index (23.56), we can say WSM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 20.82 |
4.2 Price Multiples
WSM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WSM is valued a bit cheaper than 71.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.02 | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)1.56
PEG (5Y)0.8
EPS Next 2Y6.3%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, WSM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.09, WSM pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.30, WSM pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of WSM is nicely growing with an annual growth rate of 6.72%!
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)6.72%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
WSM pays out 23.23% 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.
DP23.23%
EPS Next 2Y6.3%
EPS Next 3Y6.49%
WILLIAMS-SONOMA INC
NYSE:WSM (11/21/2024, 12:40:05 PM)
171.41
-3.63 (-2.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 20.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.56
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.78% | ||
| ROE | 48.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.29% | ||
| PM (TTM) | 14.29% | ||
| GM | 46.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)9.33%
EPS 3Y17.2%
EPS 5Y
EPS Q2Q%
EPS Next Y13.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.26%
Revenue growth 3Y4.54%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y