WILLIAMS-SONOMA INC (WSM)
US9699041011 - Common Stock
We assign a fundamental rating of 7 out of 10 to WSM. WSM was compared to 122 industry peers in the Specialty Retail industry. WSM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WSM has a decent growth rate and is not valued too expensively. WSM also has an excellent dividend rating. These ratings would make WSM suitable for dividend investing!
1. Profitability
1.1 Basic Checks
WSM had positive earnings in the past year.
In the past year WSM had a positive cash flow from operations.
In the past 5 years WSM has always been profitable.
Each year in the past 5 years WSM had a positive operating cash flow.
1.2 Ratios
WSM's Return On Assets of 22.04% is amongst the best of the industry. WSM outperforms 99.17% of its industry peers.
Looking at the Return On Equity, with a value of 57.42%, WSM belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
WSM has a better Return On Invested Capital (33.38%) than 97.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 12.03%.
| 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
WSM has a better Profit Margin (14.54%) than 98.35% of its industry peers.
WSM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.50%, WSM belongs to the top 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.
With a decent Gross Margin value of 46.75%, WSM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Gross Margin of WSM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.5% | ||
| PM (TTM) | 14.54% | ||
| GM | 46.75% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WSM is creating value.
WSM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WSM has been increased compared to 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 7.32 indicates that WSM is not in any danger for bankruptcy at the moment.
WSM has a better Altman-Z score (7.32) than 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 | 7.32 |
ROIC/WACC3.26
WACC10.25%
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.
Looking at the Current ratio, with a value of 1.35, WSM is in line with its industry, outperforming 48.76% of the companies in the same 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.
With a Quick ratio value of 0.56, WSM perfoms like the industry average, outperforming 54.55% of the companies in the same 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%.
WSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.45% yearly.
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.
Based on estimates for the next years, WSM will show a small growth in Revenue. The Revenue will grow by 2.82% on average per year.
EPS Next Y16.83%
EPS Next 2Y8.41%
EPS Next 3Y9.11%
EPS Next 5Y10.04%
Revenue Next Year-1.58%
Revenue Next 2Y-0.67%
Revenue Next 3Y0.86%
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.
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
WSM is valuated rather expensively with a Price/Earnings ratio of 22.51.
WSM's Price/Earnings ratio is a bit cheaper when compared to the industry. WSM is cheaper than 62.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of WSM to the average of the S&P500 Index (27.73), we can say WSM is valued inline with the index average.
A Price/Forward Earnings ratio of 21.45 indicates a rather expensive valuation of WSM.
Based on the Price/Forward Earnings ratio, WSM is valued a bit cheaper than 60.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, WSM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 21.45 |
4.2 Price Multiples
WSM's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 75.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 13.05 |
4.3 Compensation for Growth
WSM's 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)1.34
PEG (5Y)0.85
EPS Next 2Y8.41%
EPS Next 3Y9.11%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.19%.
WSM's Dividend Yield is a higher than the industry average which is at 3.37.
Compared to an average S&P500 Dividend Yield of 2.24, WSM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
On average, the dividend of WSM grows each year by 6.72%, which is quite nice.
WSM has been paying a dividend for at least 10 years, so it has 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
24.36% 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.
DP24.36%
EPS Next 2Y8.41%
EPS Next 3Y9.11%
WILLIAMS-SONOMA INC
NYSE:WSM (12/20/2024, 8:04:00 PM)
After market: 183.01 -0.67 (-0.36%)183.68
+4.09 (+2.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.76%
Inst Owner Change92.18%
Ins Owners1.85%
Ins Owner Change-5.67%
Market Cap22.61B
Analysts66.21
Price Target172 (-6.36%)
Short Float %10.78%
Short Ratio6.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)-1.47%
Revenue beat(16)8
Avg Revenue beat(16)0.6%
PT rev (1m)15.68%
PT rev (3m)17.2%
EPS NQ rev (1m)-47.67%
EPS NQ rev (3m)-47.67%
EPS NY rev (1m)2.78%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)-3.75%
Revenue NQ rev (3m)-3.75%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 21.45 | ||
| P/S | 3 | ||
| P/FCF | 18.94 | ||
| P/OCF | 16.13 | ||
| P/B | 11.86 | ||
| P/tB | 12.36 | ||
| EV/EBITDA | 13.05 |
EPS(TTM)8.16
EY4.44%
EPS(NY)8.56
Fwd EY4.66%
FCF(TTM)9.7
FCFY5.28%
OCF(TTM)11.39
OCFY6.2%
SpS61.16
BVpS15.49
TBVpS14.86
PEG (NY)1.34
PEG (5Y)0.85
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)48.68%
ROICexgc(5y)40.61%
ROCE(3y)45.84%
ROCE(5y)38.06%
ROICexcg growth 3Y5.66%
ROICexcg growth 5Y11.98%
ROICexc growth 3Y5.97%
ROICexc growth 5Y12.57%
OM growth 3Y5.09%
OM growth 5Y15.04%
PM growth 3Y6.89%
PM growth 5Y15.8%
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 | 7.32 |
F-Score8
WACC10.25%
ROIC/WACC3.26
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 Y16.83%
EPS Next 2Y8.41%
EPS Next 3Y9.11%
EPS Next 5Y10.04%
Revenue 1Y (TTM)-5%
Revenue growth 3Y4.54%
Revenue growth 5Y6.45%
Sales Q2Q%-2.86%
Revenue Next Year-1.58%
Revenue Next 2Y-0.67%
Revenue Next 3Y0.86%
Revenue Next 5Y2.82%
EBIT growth 1Y8.79%
EBIT growth 3Y9.87%
EBIT growth 5Y22.46%
EBIT Next Year26.15%
EBIT Next 3Y10.96%
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%