WILLIAMS-SONOMA INC (WSM) Fundamental Analysis & Valuation

NYSE:WSM • US9699041011

Current stock price

178.42 USD
-4.16 (-2.28%)
At close:
178.42 USD
0 (0%)
After Hours:

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

  • In the past year WSM was profitable.
  • WSM had a positive operating cash flow in the past year.
  • WSM had positive earnings in each of the past 5 years.
  • 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

  • Looking at the Return On Assets, with a value of 20.81%, WSM belongs to the top of the industry, outperforming 97.58% of the companies in the same industry.
  • The Return On Equity of WSM (53.45%) is better than 96.77% of its industry peers.
  • The Return On Invested Capital of WSM (31.18%) is better than 96.77% of its industry peers.
  • 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.
  • 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 95.16% of its industry peers.
  • In the last couple of years the Operating Margin of WSM has grown nicely.
  • WSM has a better Gross Margin (45.63%) 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

  • 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.
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

  • An Altman-Z score of 6.99 indicates that WSM is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 6.99, WSM belongs to the best of the industry, outperforming 95.97% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.99
ROIC/WACC3.18
WACC9.79%
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's Current ratio of 1.43 is fine compared to the rest of the industry. WSM outperforms 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.
  • WSM has a Quick ratio (0.60) which is in line with 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 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.
  • WSM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.28% yearly.
  • 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

  • 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 Y0.72%
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

  • The Price/Earnings ratio is 19.63, which indicates a rather expensive current valuation of WSM.
  • 70.16% of the companies in the same industry are more expensive than WSM, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.23. WSM is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 19.35, WSM is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WSM is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of WSM to the average of the S&P500 Index (23.28), we can say WSM is valued inline with the index average.
Industry RankSector Rank
PE 19.63
Fwd PE 19.35
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as WSM.
  • WSM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSM is cheaper than 66.13% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.26
EV/EBITDA 12.58
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)27.33
PEG (5Y)0.67
EPS Next 2Y2.83%
EPS Next 3Y4.75%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. WSM Dividend Analysis

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 2.41.
  • 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 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
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

  • 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 2Y2.83%
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 (3/20/2026, 8:04:00 PM)

After market: 178.42 0 (0%)

178.42

-4.16 (-2.28%)

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 Cap21.30B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target209.22 (17.26%)
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 19.63
Fwd PE 19.35
P/S 2.69
P/FCF 19.26
P/OCF 15.76
P/B 10.3
P/tB 10.7
EV/EBITDA 12.58
EPS(TTM)9.09
EY5.09%
EPS(NY)9.22
Fwd EY5.17%
FCF(TTM)9.26
FCFY5.19%
OCF(TTM)11.32
OCFY6.34%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)27.33
PEG (5Y)0.67
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 6.99
F-Score6
WACC9.79%
ROIC/WACC3.18
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 19.63 and the Price/Book (PB) ratio is 10.3.


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.