WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WSM • US9699041011
204.65 USD
-1.01 (-0.49%)
At close: Jan 30, 2026
204.65 USD
0 (0%)
After Hours: 1/30/2026, 8:24:35 PM
Overall WSM gets a fundamental rating of 7 out of 10. We evaluated WSM against 121 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 is not valued too expensively and it also shows a decent growth rate.
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.
- Each year in the past 5 years WSM has been profitable.
- WSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 20.81%, WSM belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
- WSM has a better Return On Equity (53.45%) than 95.04% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 31.18%, 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 32.30%. This is significantly above the industry average of 12.28%.
| Industry Rank | Sector 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%
1.3 Margins
- WSM's Profit Margin of 13.97% is amongst the best of the industry. WSM outperforms 95.87% of its industry peers.
- In the last couple of years the Profit Margin of WSM has grown nicely.
- WSM has a Operating Margin of 18.12%. This is amongst the best in the industry. WSM outperforms 94.21% of its industry peers.
- WSM's Operating Margin has improved in the last couple of years.
- WSM has a Gross Margin of 45.63%. This is in the better half of the industry: WSM outperforms 71.07% of its industry peers.
- WSM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WSM is creating value.
- Compared to 1 year ago, WSM has less shares outstanding
- Compared to 5 years ago, WSM has more shares outstanding
- 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 7.48. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.48, WSM belongs to the top of the industry, outperforming 95.87% of the companies in the same industry.
- 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 | 7.48 |
ROIC/WACC3.19
WACC9.77%
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.
- Looking at the Current ratio, with a value of 1.43, WSM is in line with its industry, outperforming 58.68% 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's Quick ratio of 0.60 is in line compared to the rest of the industry. WSM outperforms 57.85% of its industry peers.
- The current and quick ratio evaluation for WSM is rather negative, while it does have 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 | 1.43 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- WSM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.40%, which is quite good.
- WSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.28% yearly.
- The Revenue has been growing slightly by 5.10% in the past year.
- WSM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.51% yearly.
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.
- WSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y0.66%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
EPS Next 5Y6.9%
Revenue Next Year3.45%
Revenue Next 2Y3.47%
Revenue Next 3Y3.66%
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.
- 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
- Based on the Price/Earnings ratio of 22.51, the valuation of WSM can be described as rather expensive.
- 69.42% of the companies in the same industry are more expensive than WSM, based on the Price/Earnings ratio.
- WSM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
- WSM is valuated rather expensively with a Price/Forward Earnings ratio of 22.20.
- 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 (25.57), we can say WSM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 22.2 |
4.2 Price Multiples
- WSM's Enterprise Value to EBITDA ratio is in line with the industry average.
- 66.94% of the companies in the same industry are more expensive than WSM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.1 | ||
| EV/EBITDA | 14.16 |
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)34.36
PEG (5Y)0.77
EPS Next 2Y2.81%
EPS Next 3Y4.71%
5. Dividend
5.1 Amount
- WSM has a Yearly Dividend Yield of 1.28%.
- WSM's Dividend Yield is a higher than the industry average which is at 2.20.
- Compared to the average S&P500 Dividend Yield of 1.83, WSM is paying slightly less dividend.
| Industry Rank | Sector 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
5.3 Sustainability
- WSM pays out 27.85% 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.
DP27.85%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
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 22.51 and the Price/Book (PB) ratio is 11.81.
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.