WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSM - US9699041011 - Common Stock
211.51 USD
+1.51 (+0.72%)
211.51 USD
0 (0%)
WSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate.
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.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 20.81%, WSM belongs to the top of the industry, outperforming 97.52% of the companies in the same industry.
- WSM's Return On Equity of 53.45% is amongst the best of the industry. WSM outperforms 95.04% of its industry peers.
- With an excellent Return On Invested Capital value of 31.18%, WSM belongs to the best of the industry, outperforming 96.69% 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 12.37%.
| 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
- With an excellent Profit Margin value of 13.97%, WSM belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
- WSM's Profit Margin has improved in the last couple of years.
- 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.
- With a decent Gross Margin value of 45.63%, WSM is doing good in the industry, outperforming 71.90% 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 | 18.12% | ||
| 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
- 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.
- 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 7.63. 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 7.63, 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 | 7.63 |
ROIC/WACC3.2
WACC9.75%
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 Current ratio of 1.43. This is comparable to the rest of the industry: WSM outperforms 57.85% of its industry peers.
- A Quick Ratio of 0.60 indicates that WSM may have some problems paying its short term obligations.
- WSM has a Quick ratio of 0.60. This is comparable 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
- 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
- The Revenue has been growing slightly by 5.10% in the past year.
- 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
- Based on estimates for the next years, WSM will show a small growth in Earnings Per Share. The EPS will grow by 6.90% on average per year.
- 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 Year3.45%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 23.27, the valuation of WSM can be described as rather expensive.
- Based on the Price/Earnings ratio, WSM is valued a bit cheaper than 70.25% of the companies in the same industry.
- WSM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- WSM is valuated rather expensively with a Price/Forward Earnings ratio of 22.95.
- WSM's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of WSM to the average of the S&P500 Index (24.29), we can say WSM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 22.95 |
4.2 Price Multiples
- WSM's Enterprise Value to EBITDA ratio is in line with the industry average.
- WSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSM is cheaper than 70.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.84 | ||
| EV/EBITDA | 14.66 |
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)35.51
PEG (5Y)0.79
EPS Next 2Y2.81%
EPS Next 3Y4.71%
5. Dividend
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 2.08, WSM pays a bit more dividend than its industry peers.
- WSM's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| 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 their dividend for at least 10 years, which is a reliable track record.
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%
211.51
+1.51 (+0.72%)
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-0.03%
Ins Owners0.4%
Ins Owner Change-8.16%
Market Cap25.25B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target202.77 (-4.13%)
Short Float %6.75%
Short Ratio6.57
Dividend
| Industry Rank | Sector 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 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)0.13%
PT rev (3m)-2.8%
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 | 23.27 | ||
| Fwd PE | 22.95 | ||
| P/S | 3.19 | ||
| P/FCF | 22.84 | ||
| P/OCF | 18.68 | ||
| P/B | 12.21 | ||
| P/tB | 12.68 | ||
| EV/EBITDA | 14.66 |
EPS(TTM)9.09
EY4.3%
EPS(NY)9.22
Fwd EY4.36%
FCF(TTM)9.26
FCFY4.38%
OCF(TTM)11.32
OCFY5.35%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)35.51
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 | 7.63 |
F-Score6
WACC9.75%
ROIC/WACC3.2
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 23.27 and the Price/Book (PB) ratio is 12.21.
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.