WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
NYSE:WSM - New York Stock Exchange, Inc. - US9699041011 - Common Stock - Currency: USD
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 has a correct valuation and a medium growth rate. Finally WSM also has an excellent dividend rating. This makes WSM very considerable for dividend 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 Return On Assets of 22.04%. This is amongst the best in the industry. WSM outperforms 99.15% of its industry peers.
WSM has a Return On Equity of 57.42%. This is amongst the best in the industry. WSM outperforms 94.87% of its industry peers.
WSM has a better Return On Invested Capital (33.38%) than 97.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.04% | ||
| ROE | 57.42% | ||
| ROIC | 33.38% |
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
Looking at the Profit Margin, with a value of 14.54%, WSM belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
In the last couple of years the Profit Margin of WSM has grown nicely.
The Operating Margin of WSM (18.50%) is better than 95.73% of its industry peers.
WSM's Operating Margin has improved in the last couple of years.
WSM has a Gross Margin of 46.75%. This is in the better half of the industry: WSM outperforms 71.79% of its industry peers.
WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.5% | ||
| PM (TTM) | 14.54% | ||
| GM | 46.75% |
OM growth 3Y5.09%
OM growth 5Y15.05%
PM growth 3Y6.88%
PM growth 5Y15.81%
GM growth 3Y2.98%
GM growth 5Y2.85%
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.
WSM has more shares outstanding than it did 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 7.69. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
WSM has a Altman-Z score of 7.69. This is amongst the best in the industry. WSM outperforms 98.29% 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 | 7.69 |
ROIC/WACC3.25
WACC10.27%
2.3 Liquidity
WSM has a Current Ratio of 1.35. 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 (1.35) which is comparable to the rest of the industry.
WSM has a Quick Ratio of 1.35. This is a bad value and indicates that WSM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WSM (0.56) is comparable to the rest of the industry.
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 | 1.35 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
WSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.55%, which is quite good.
Measured over the past years, WSM shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.54% on average per year.
WSM shows a decrease in Revenue. In the last year, the revenue decreased by -5.00%.
Measured over the past years, WSM shows a small growth in Revenue. The Revenue has been growing by 6.45% on average per year.
EPS 1Y (TTM)11.55%
EPS 3Y17.2%
EPS 5Y26.54%
EPS Q2Q%7.1%
Revenue 1Y (TTM)-5%
Revenue growth 3Y4.54%
Revenue growth 5Y6.45%
Sales Q2Q%-2.86%
3.2 Future
Based on estimates for the next years, WSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.04% on average per year.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y17.1%
EPS Next 2Y9.21%
EPS Next 3Y8.86%
EPS Next 5Y10.04%
Revenue Next Year-1.54%
Revenue Next 2Y-0.52%
Revenue Next 3Y0.97%
Revenue Next 5Y2.82%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 23.92, which indicates a rather expensive current valuation of WSM.
WSM's Price/Earnings is on the same level as the industry average.
WSM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.46, WSM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSM is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, WSM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 22.46 |
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 70.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.13 | ||
| EV/EBITDA | 14.23 |
4.3 Compensation for Growth
WSM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.4
PEG (5Y)0.9
EPS Next 2Y9.21%
EPS Next 3Y8.86%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.09%.
WSM's Dividend Yield is a higher than the industry average which is at 4.31.
Compared to an average S&P500 Dividend Yield of 2.27, WSM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
On average, the dividend of WSM grows each year by 6.72%, which is quite nice.
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)6.72%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
WSM pays out 24.36% 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.
DP24.36%
EPS Next 2Y9.21%
EPS Next 3Y8.86%
195.18
-14.15 (-6.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.52%
Inst Owner Change-83.79%
Ins Owners0.36%
Ins Owner Change-5.86%
Market Cap24.03B
Analysts65.52
Price Target190.04 (-2.63%)
Short Float %6.91%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend2.39
Dividend Growth(5Y)6.72%
DP24.36%
Div Incr Years18
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.42%
Min EPS beat(2)7.59%
Max EPS beat(2)9.24%
EPS beat(4)4
Avg EPS beat(4)12.37%
Min EPS beat(4)5.27%
Max EPS beat(4)27.39%
EPS beat(8)6
Avg EPS beat(8)8.78%
EPS beat(12)9
Avg EPS beat(12)9.2%
EPS beat(16)13
Avg EPS beat(16)13.28%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)1.06%
Revenue beat(8)1
Avg Revenue beat(8)-2.84%
Revenue beat(12)4
Avg Revenue beat(12)-1.46%
Revenue beat(16)8
Avg Revenue beat(16)0.6%
PT rev (1m)8.56%
PT rev (3m)29%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)0.22%
EPS NY rev (3m)3.02%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 22.46 | ||
| P/S | 3.19 | ||
| P/FCF | 20.13 | ||
| P/OCF | 17.14 | ||
| P/B | 12.6 | ||
| P/tB | 13.13 | ||
| EV/EBITDA | 14.23 |
EPS(TTM)8.16
EY4.18%
EPS(NY)8.69
Fwd EY4.45%
FCF(TTM)9.7
FCFY4.97%
OCF(TTM)11.39
OCFY5.83%
SpS61.16
BVpS15.49
TBVpS14.86
PEG (NY)1.4
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.04% | ||
| ROE | 57.42% | ||
| ROCE | 44.59% | ||
| ROIC | 33.38% | ||
| ROICexc | 45.4% | ||
| ROICexgc | 46.99% | ||
| OM | 18.5% | ||
| PM (TTM) | 14.54% | ||
| GM | 46.75% | ||
| FCFM | 15.86% |
ROA(3y)22.18%
ROA(5y)17.99%
ROE(3y)59.54%
ROE(5y)49.73%
ROIC(3y)34.32%
ROIC(5y)28.01%
ROICexc(3y)46.9%
ROICexc(5y)39.04%
ROICexgc(3y)48.69%
ROICexgc(5y)40.61%
ROCE(3y)45.84%
ROCE(5y)38.06%
ROICexcg growth 3Y5.66%
ROICexcg growth 5Y11.99%
ROICexc growth 3Y5.97%
ROICexc growth 5Y12.57%
OM growth 3Y5.09%
OM growth 5Y15.05%
PM growth 3Y6.88%
PM growth 5Y15.81%
GM growth 3Y2.98%
GM growth 5Y2.85%
F-Score8
Asset Turnover1.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 87.31% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.95% | ||
| Profit Quality | 109.03% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 7.69 |
F-Score8
WACC10.27%
ROIC/WACC3.25
Cap/Depr(3y)120.61%
Cap/Depr(5y)110.17%
Cap/Sales(3y)3.09%
Cap/Sales(5y)2.98%
Profit Quality(3y)106.88%
Profit Quality(5y)120.25%
High Growth Momentum
Growth
EPS 1Y (TTM)11.55%
EPS 3Y17.2%
EPS 5Y26.54%
EPS Q2Q%7.1%
EPS Next Y17.1%
EPS Next 2Y9.21%
EPS Next 3Y8.86%
EPS Next 5Y10.04%
Revenue 1Y (TTM)-5%
Revenue growth 3Y4.54%
Revenue growth 5Y6.45%
Sales Q2Q%-2.86%
Revenue Next Year-1.54%
Revenue Next 2Y-0.52%
Revenue Next 3Y0.97%
Revenue Next 5Y2.82%
EBIT growth 1Y10.88%
EBIT growth 3Y9.87%
EBIT growth 5Y22.46%
EBIT Next Year29.95%
EBIT Next 3Y10.98%
EBIT Next 5Y8.53%
FCF growth 1Y40.19%
FCF growth 3Y10.51%
FCF growth 5Y30.38%
OCF growth 1Y19.66%
OCF growth 3Y9.64%
OCF growth 5Y23.45%