WILLIAMS-SONOMA INC (WSM) Fundamental Analysis & Valuation

NYSE:WSM • US9699041011

Current stock price

180.43 USD
-3.67 (-1.99%)
Last:

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

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.
  • Each year in the past 5 years WSM has been profitable.
  • In the past 5 years WSM always reported a positive cash flow from operatings.
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 Return On Assets of 20.81%. This is amongst the best in the industry. WSM outperforms 97.58% of its industry peers.
  • WSM has a better Return On Equity (53.45%) than 96.77% of its industry peers.
  • With an excellent Return On Invested Capital value of 31.18%, WSM belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for WSM is significantly above the industry average of 13.55%.
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 better Profit Margin (13.97%) than 95.97% of its industry peers.
  • In the last couple of years the Profit Margin of WSM has grown nicely.
  • The Operating Margin of WSM (18.12%) is better than 95.16% of its industry peers.
  • In the last couple of years the Operating Margin of WSM has grown nicely.
  • The Gross Margin of WSM (45.63%) is better than 71.77% 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

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9

2. WSM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WSM is creating value.
  • WSM has less 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.
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 7.02. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
  • WSM has a Altman-Z score of 7.02. This is amongst the best in the industry. WSM outperforms 95.97% 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 7.02
ROIC/WACC3.19
WACC9.78%
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

  • A Current Ratio of 1.43 indicates that WSM should not have too much problems paying its short term obligations.
  • WSM has a better Current ratio (1.43) than 60.48% 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.
  • With a Quick ratio value of 0.60, WSM perfoms like the industry average, outperforming 56.45% 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 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

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

4

3. WSM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.40% over the past year.
  • The Earnings Per Share has been growing by 29.28% on average over the past years. This is a very strong growth
  • WSM shows a small growth in Revenue. In the last year, the Revenue has grown by 5.10%.
  • Measured over the past years, WSM shows a small growth in Revenue. The Revenue has been growing by 5.51% on average per year.
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 Y0.72%
EPS Next 2Y2.83%
EPS Next 3Y4.75%
EPS Next 5Y6.9%
Revenue Next Year3.48%
Revenue Next 2Y3.5%
Revenue Next 3Y3.67%
Revenue Next 5Y3.77%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.
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

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4

4. WSM Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 19.85, WSM is valued on the expensive side.
  • Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 69.35% of the companies are valued more expensively.
  • WSM is valuated rather cheaply when we compare the Price/Earnings ratio to 25.79, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 19.57, the valuation of WSM can be described as rather expensive.
  • WSM's Price/Forward Earnings ratio is in line with the industry average.
  • WSM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.80.
Industry RankSector Rank
PE 19.85
Fwd PE 19.57
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 is on the same level as 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 66.13% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 19.48
EV/EBITDA 12.69
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 WSM does not grow enough to justify the current Price/Earnings ratio.
  • WSM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)27.63
PEG (5Y)0.68
EPS Next 2Y2.83%
EPS Next 3Y4.75%

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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.
  • WSM's Dividend Yield is a higher than the industry average which is at 2.41.
  • WSM's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
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 been paying a dividend for at least 10 years, so it has 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 2Y2.83%
EPS Next 3Y4.75%
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

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WSM Fundamentals: All Metrics, Ratios and Statistics

WILLIAMS-SONOMA INC

NYSE:WSM (3/19/2026, 10:51:07 AM)

180.43

-3.67 (-1.99%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-19
Earnings (Next)05-20
Inst Owners96.76%
Inst Owner Change-0.63%
Ins Owners0.26%
Ins Owner Change-3.23%
Market Cap21.54B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target209.22 (15.96%)
Short Float %6.27%
Short Ratio6.9
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)1.3%
PT rev (3m)3.31%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.01%
Valuation
Industry RankSector Rank
PE 19.85
Fwd PE 19.57
P/S 2.72
P/FCF 19.48
P/OCF 15.94
P/B 10.42
P/tB 10.82
EV/EBITDA 12.69
EPS(TTM)9.09
EY5.04%
EPS(NY)9.22
Fwd EY5.11%
FCF(TTM)9.26
FCFY5.13%
OCF(TTM)11.32
OCFY6.27%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)27.63
PEG (5Y)0.68
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 7.02
F-Score6
WACC9.78%
ROIC/WACC3.19
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 Y0.72%
EPS Next 2Y2.83%
EPS Next 3Y4.75%
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 2Y3.5%
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 Fundamental Analysis 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 19.85 and the Price/Book (PB) ratio is 10.42.


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 0.72% in the next year.