WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSM - US9699041011 - Common Stock
210 USD
+3.35 (+1.62%)
210 USD
0 (0%)
Taking everything into account, WSM scores 7 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- WSM had positive earnings in the past year.
- WSM had a positive operating cash flow in the past year.
- 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
- WSM's Return On Assets of 20.81% is amongst the best of the industry. WSM outperforms 97.54% of its industry peers.
- Looking at the Return On Equity, with a value of 53.45%, WSM belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 31.18%, WSM belongs to the best of the industry, outperforming 96.72% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WSM is significantly above the industry average of 12.24%.
| 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 95.90% 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 18.12%, WSM belongs to the top of the industry, outperforming 94.26% of the companies in the same industry.
- WSM's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 45.63%, WSM is doing good in the industry, outperforming 71.31% of the companies in the same industry.
- 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.
- The number of shares outstanding for WSM has been reduced compared to 1 year ago.
- 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
- An Altman-Z score of 7.60 indicates that WSM is not in any danger for bankruptcy at the moment.
- The Altman-Z score of WSM (7.60) is better than 95.90% 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 | 7.6 |
ROIC/WACC3.22
WACC9.68%
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 Current ratio value of 1.43, WSM perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
- A Quick Ratio of 0.60 indicates that WSM may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.60, WSM is in line with its industry, outperforming 57.38% of the companies in the same industry.
- 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
- 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%.
- 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
- The Earnings Per Share is expected to grow by 6.90% on average over the next years.
- 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 23.10, the valuation of WSM can be described as rather expensive.
- Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 69.67% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of WSM to the average of the S&P500 Index (27.54), we can say WSM is valued inline with the index average.
- With a Price/Forward Earnings ratio of 22.78, WSM is valued on the expensive side.
- WSM's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, WSM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 22.78 |
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 70.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.67 | ||
| EV/EBITDA | 14.55 |
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)35.26
PEG (5Y)0.79
EPS Next 2Y2.81%
EPS Next 3Y4.71%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.38%, WSM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.13, WSM pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.92, WSM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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
5.3 Sustainability
- 27.85% of the earnings are spent on dividend by WSM. This is a low number and 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%
210
+3.35 (+1.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-19 2025-11-19/bmo
Earnings (Next)05-20 2026-05-20/bmo
Inst Owners96.79%
Inst Owner Change-0.02%
Ins Owners0.4%
Ins Owner Change-7.77%
Market Cap25.07B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target202.51 (-3.57%)
Short Float %6.75%
Short Ratio6.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend2.23
Dividend Growth(5Y)2.89%
DP27.85%
Div Incr Years18
Div Non Decr Years18
Ex-Date01-16 2026-01-16 (0.66)
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)0%
PT rev (3m)-2.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)0%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 22.78 | ||
| P/S | 3.17 | ||
| P/FCF | 22.67 | ||
| P/OCF | 18.55 | ||
| P/B | 12.12 | ||
| P/tB | 12.59 | ||
| EV/EBITDA | 14.55 |
EPS(TTM)9.09
EY4.33%
EPS(NY)9.22
Fwd EY4.39%
FCF(TTM)9.26
FCFY4.41%
OCF(TTM)11.32
OCFY5.39%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)35.26
PEG (5Y)0.79
Graham Number59.52
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 7.6 |
F-Score6
WACC9.68%
ROIC/WACC3.22
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 Year3.45%
Revenue Next 2Y3.47%
Revenue Next 3Y3.66%
Revenue Next 5Y3.77%
EBIT growth 1Y2.96%
EBIT growth 3Y-0.44%
EBIT growth 5Y25.22%
EBIT Next Year18.76%
EBIT Next 3Y8.61%
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 23.1 and the Price/Book (PB) ratio is 12.12.
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.