WILLIAMS-SONOMA INC (WSM) Fundamental Analysis & Valuation

NYSE:WSM • US9699041011

192.5 USD
-3.84 (-1.96%)
Last: Mar 5, 2026, 11:44 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This WSM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. WSM was compared to 123 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

9

1. WSM Profitability Analysis

1.1 Basic Checks

  • WSM had positive earnings in the past year.
  • In the past year WSM had a positive cash flow from operations.
  • 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.
WSM Yearly Net Income VS EBIT VS OCF VS FCFWSM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • WSM has a better Return On Assets (20.81%) than 97.56% of its industry peers.
  • With an excellent Return On Equity value of 53.45%, WSM belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
  • WSM has a Return On Invested Capital of 31.18%. This is amongst the best in the industry. WSM outperforms 96.75% of its industry peers.
  • WSM had an Average Return On Invested Capital over the past 3 years of 32.30%. This is significantly above the industry average of 13.62%.
Industry RankSector 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%
WSM Yearly ROA, ROE, ROICWSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • WSM has a Profit Margin of 13.97%. This is amongst the best in the industry. WSM outperforms 95.94% 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 18.12%, WSM belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
  • WSM's Operating Margin has improved in the last couple of years.
  • WSM has a better Gross Margin (45.63%) than 71.54% of its industry peers.
  • In the last couple of years the Gross Margin of WSM has grown nicely.
Industry RankSector 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%
WSM Yearly Profit, Operating, Gross MarginsWSM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. WSM Health Analysis

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 less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for WSM has been increased compared to 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.
WSM Yearly Shares OutstandingWSM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
WSM Yearly Total Debt VS Total AssetsWSM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • WSM has an Altman-Z score of 7.30. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
  • WSM has a better Altman-Z score (7.30) than 95.94% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 7.3
ROIC/WACC3.31
WACC9.43%
WSM Yearly LT Debt VS Equity VS FCFWSM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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.
  • With a decent Current ratio value of 1.43, WSM is doing good in the industry, outperforming 60.16% of the companies in the same industry.
  • 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 56.91% 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 RankSector Rank
Current Ratio 1.43
Quick Ratio 0.6
WSM Yearly Current Assets VS Current LiabilitesWSM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. WSM Growth Analysis

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.
  • The Earnings Per Share has been growing by 29.28% on average over the past years. This is a very strong growth
  • The Revenue has been growing slightly by 5.10% in the past 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

  • WSM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.90% yearly.
  • Based on estimates for the next years, WSM will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y0.66%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
EPS Next 5Y6.9%
Revenue Next Year3.48%
Revenue Next 2Y3.48%
Revenue Next 3Y3.67%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WSM Yearly Revenue VS EstimatesWSM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
WSM Yearly EPS VS EstimatesWSM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

More info and screens

Find the best growth stocksShow best growing peers

4

4. WSM Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 21.18, WSM is valued on the expensive side.
  • 73.98% of the companies in the same industry are more expensive than WSM, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of WSM to the average of the S&P500 Index (27.03), we can say WSM is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 20.88 indicates a rather expensive valuation of WSM.
  • 61.79% of the companies in the same industry are more expensive than WSM, based on the Price/Forward Earnings ratio.
  • WSM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.11.
Industry RankSector Rank
PE 21.18
Fwd PE 20.88
WSM Price Earnings VS Forward Price EarningsWSM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 67.48% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.78
EV/EBITDA 13.57
WSM Per share dataWSM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)32.32
PEG (5Y)0.72
EPS Next 2Y2.81%
EPS Next 3Y4.71%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. WSM Dividend Analysis

5.1 Amount

  • WSM has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.33, WSM pays a bit more dividend than its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.82, WSM is paying slightly less dividend.
Industry RankSector 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 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
WSM Yearly Dividends per shareWSM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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%
WSM Yearly Income VS Free CF VS DividendWSM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
WSM Dividend Payout.WSM Dividend Payout, showing the Payout Ratio.WSM Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

WSM Fundamentals: All Metrics, Ratios and Statistics

WILLIAMS-SONOMA INC

NYSE:WSM (3/5/2026, 11:44:06 AM)

192.5

-3.84 (-1.96%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-19
Earnings (Next)05-20
Inst Owners96.79%
Inst Owner Change-0.62%
Ins Owners0.4%
Ins Owner Change-7.99%
Market Cap22.98B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target209.22 (8.69%)
Short Float %6.2%
Short Ratio6.95
Dividend
Industry RankSector 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
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)3.18%
PT rev (3m)-0.12%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)0%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.35%
Valuation
Industry RankSector Rank
PE 21.18
Fwd PE 20.88
P/S 2.9
P/FCF 20.78
P/OCF 17
P/B 11.11
P/tB 11.54
EV/EBITDA 13.57
EPS(TTM)9.09
EY4.72%
EPS(NY)9.22
Fwd EY4.79%
FCF(TTM)9.26
FCFY4.81%
OCF(TTM)11.32
OCFY5.88%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)32.32
PEG (5Y)0.72
Graham Number59.52
Profitability
Industry RankSector 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 RankSector 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 7.3
F-Score6
WACC9.43%
ROIC/WACC3.31
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 Year3.48%
Revenue Next 2Y3.48%
Revenue Next 3Y3.67%
Revenue Next 5Y3.77%
EBIT growth 1Y2.96%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year18.83%
EBIT Next 3Y8.65%
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 21.18 and the Price/Book (PB) ratio is 11.11.


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.