WILLIAMS-SONOMA INC (WSM) Fundamental Analysis & Valuation

NYSE:WSM • US9699041011

Current stock price

192.05 USD
+1.5 (+0.79%)
At close:
192.05 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.
  • In the past year WSM had a positive cash flow from operations.
  • WSM had positive earnings in each of the past 5 years.
  • Each year in the past 5 years WSM had a positive operating cash flow.
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 2026 500M 1B 1.5B

1.2 Ratios

  • The Return On Assets of WSM (20.11%) is better than 97.56% of its industry peers.
  • Looking at the Return On Equity, with a value of 52.26%, WSM belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 30.84%, WSM belongs to the top of the industry, outperforming 96.75% 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 13.24%.
  • The last Return On Invested Capital (30.84%) for WSM is above the 3 year average (30.23%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 20.11%
ROE 52.26%
ROIC 30.84%
ROA(3y)19.78%
ROA(5y)21.58%
ROE(3y)49.81%
ROE(5y)56.68%
ROIC(3y)30.23%
ROIC(5y)33.27%
WSM Yearly ROA, ROE, ROICWSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20 40 60

1.3 Margins

  • WSM has a Profit Margin of 13.94%. This is amongst the best in the industry. WSM outperforms 96.75% of its industry peers.
  • In the last couple of years the Profit Margin of WSM has grown nicely.
  • The Operating Margin of WSM (18.13%) is better than 95.94% of its industry peers.
  • WSM's Operating Margin has improved in the last couple of years.
  • The Gross Margin of WSM (46.15%) is better than 72.36% of its industry peers.
  • In the last couple of years the Gross Margin of WSM has grown nicely.
Industry RankSector Rank
OM 18.13%
PM (TTM) 13.94%
GM 46.15%
OM growth 3Y1.67%
OM growth 5Y5.35%
PM growth 3Y2.35%
PM growth 5Y6.8%
GM growth 3Y2.87%
GM growth 5Y3.41%
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 2026 10 20 30 40

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8

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.
  • The number of shares outstanding for WSM has been reduced compared to 1 year ago.
  • WSM has more shares outstanding than it did 5 years ago.
  • 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 2026 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 2026 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 6.98 indicates that WSM is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 6.98, WSM belongs to the top of the industry, outperforming 94.31% of the companies in the same industry.
  • 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 6.98
ROIC/WACC3.45
WACC8.95%
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 2026 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 1.39 indicates that WSM should not have too much problems paying its short term obligations.
  • WSM has a Current ratio (1.39) which is in line with its industry peers.
  • A Quick Ratio of 0.64 indicates that WSM may have some problems paying its short term obligations.
  • WSM's Quick ratio of 0.64 is in line compared to the rest of the industry. WSM outperforms 56.10% 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 RankSector Rank
Current Ratio 1.39
Quick Ratio 0.64
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 2026 500M 1B 1.5B 2B 2.5B

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4

3. WSM Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.49% over the past year.
  • Measured over the past years, WSM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.36% on average per year.
  • The Revenue has been growing slightly by 1.24% in the past year.
  • Measured over the past years, WSM shows a small growth in Revenue. The Revenue has been growing by 2.85% on average per year.
EPS 1Y (TTM)1.49%
EPS 3Y2.18%
EPS 5Y14.36%
EPS Q2Q%-7.32%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y-3.45%
Revenue growth 5Y2.85%
Sales Q2Q%-4.27%

3.2 Future

  • Based on estimates for the next years, WSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.33% on average per year.
  • WSM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
EPS Next Y5.79%
EPS Next 2Y7.55%
EPS Next 3Y9.03%
EPS Next 5Y8.33%
Revenue Next Year3.54%
Revenue Next 2Y4.02%
Revenue Next 3Y4.44%
Revenue Next 5Y4.07%

3.3 Evolution

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

  • WSM is valuated rather expensively with a Price/Earnings ratio of 21.70.
  • Based on the Price/Earnings ratio, WSM is valued a bit cheaper than the industry average as 65.04% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of WSM to the average of the S&P500 Index (27.15), we can say WSM is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 20.51, the valuation of WSM can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 60.16% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of WSM to the average of the S&P500 Index (22.12), we can say WSM is valued inline with the index average.
Industry RankSector Rank
PE 21.7
Fwd PE 20.51
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 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 60.98% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 21.66
EV/EBITDA 13.26
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.
  • The excellent profitability rating of WSM may justify a higher PE ratio.
PEG (NY)3.75
PEG (5Y)1.51
EPS Next 2Y7.55%
EPS Next 3Y9.03%

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7

5. WSM Dividend Analysis

5.1 Amount

  • WSM has a Yearly Dividend Yield of 1.58%. 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 3.79.
  • Compared to an average S&P500 Dividend Yield of 1.82, WSM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.58%

5.2 History

  • The dividend of WSM has a limited annual growth rate of 4.95%.
  • 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)4.95%
Div Incr Years19
Div Non Decr Years19
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

  • 29.08% 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.
DP29.08%
EPS Next 2Y7.55%
EPS Next 3Y9.03%
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 2026 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 (4/27/2026, 8:23:56 PM)

After market: 192.05 0 (0%)

192.05

+1.5 (+0.79%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-18
Earnings (Next)05-20
Inst Owners96.97%
Inst Owner Change0.05%
Ins Owners0.31%
Ins Owner Change6.18%
Market Cap22.86B
Revenue(TTM)7.81B
Net Income(TTM)1.09B
Analysts71.11
Price Target208.74 (8.69%)
Short Float %6.07%
Short Ratio5.72
Dividend
Industry RankSector Rank
Dividend Yield 1.58%
Yearly Dividend2.62
Dividend Growth(5Y)4.95%
DP29.08%
Div Incr Years19
Div Non Decr Years19
Ex-Date04-17
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.94%
Min EPS beat(2)3.93%
Max EPS beat(2)3.94%
EPS beat(4)4
Avg EPS beat(4)5.44%
Min EPS beat(4)3.93%
Max EPS beat(4)9.71%
EPS beat(8)8
Avg EPS beat(8)9.54%
EPS beat(12)11
Avg EPS beat(12)8.56%
EPS beat(16)13
Avg EPS beat(16)8.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-3.48%
Max Revenue beat(2)-0.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-3.48%
Max Revenue beat(4)2.74%
Revenue beat(8)2
Avg Revenue beat(8)-0.14%
Revenue beat(12)3
Avg Revenue beat(12)-1.16%
Revenue beat(16)6
Avg Revenue beat(16)-0.71%
PT rev (1m)-0.23%
PT rev (3m)2.94%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)1.53%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE 21.7
Fwd PE 20.51
P/S 2.93
P/FCF 21.66
P/OCF 17.38
P/B 10.98
P/tB 11.4
EV/EBITDA 13.26
EPS(TTM)8.85
EY4.61%
EPS(NY)9.36
Fwd EY4.88%
FCF(TTM)8.87
FCFY4.62%
OCF(TTM)11.05
OCFY5.75%
SpS65.59
BVpS17.5
TBVpS16.85
PEG (NY)3.75
PEG (5Y)1.51
Graham Number59.0271 (-69.26%)
Profitability
Industry RankSector Rank
ROA 20.11%
ROE 52.26%
ROCE 40.94%
ROIC 30.84%
ROICexc 43.75%
ROICexgc 45.18%
OM 18.13%
PM (TTM) 13.94%
GM 46.15%
FCFM 13.52%
ROA(3y)19.78%
ROA(5y)21.58%
ROE(3y)49.81%
ROE(5y)56.68%
ROIC(3y)30.23%
ROIC(5y)33.27%
ROICexc(3y)45.97%
ROICexc(5y)47%
ROICexgc(3y)47.62%
ROICexgc(5y)48.73%
ROCE(3y)40.13%
ROCE(5y)44.16%
ROICexgc growth 3Y1.14%
ROICexgc growth 5Y2.94%
ROICexc growth 3Y1.05%
ROICexc growth 5Y3.21%
OM growth 3Y1.67%
OM growth 5Y5.35%
PM growth 3Y2.35%
PM growth 5Y6.8%
GM growth 3Y2.87%
GM growth 5Y3.41%
F-Score5
Asset Turnover1.44
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 112.09%
Cap/Sales 3.32%
Interest Coverage 2045.84
Cash Conversion 79.83%
Profit Quality 96.97%
Current Ratio 1.39
Quick Ratio 0.64
Altman-Z 6.98
F-Score5
WACC8.95%
ROIC/WACC3.45
Cap/Depr(3y)96.51%
Cap/Depr(5y)114.07%
Cap/Sales(3y)2.88%
Cap/Sales(5y)3.09%
Profit Quality(3y)118.41%
Profit Quality(5y)103.76%
High Growth Momentum
Growth
EPS 1Y (TTM)1.49%
EPS 3Y2.18%
EPS 5Y14.36%
EPS Q2Q%-7.32%
EPS Next Y5.79%
EPS Next 2Y7.55%
EPS Next 3Y9.03%
EPS Next 5Y8.33%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y-3.45%
Revenue growth 5Y2.85%
Sales Q2Q%-4.27%
Revenue Next Year3.54%
Revenue Next 2Y4.02%
Revenue Next 3Y4.44%
Revenue Next 5Y4.07%
EBIT growth 1Y-1.01%
EBIT growth 3Y-1.84%
EBIT growth 5Y8.35%
EBIT Next Year19.89%
EBIT Next 3Y10.41%
EBIT Next 5Y7.46%
FCF growth 1Y-7.31%
FCF growth 3Y14.74%
FCF growth 5Y-0.92%
OCF growth 1Y-3.33%
OCF growth 3Y7.69%
OCF growth 5Y0.62%

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 for WSM stock?

ChartMill assigns a valuation rating of 4 / 10 to WILLIAMS-SONOMA INC (WSM). This can be considered as Fairly Valued.


Can you provide the profitability details for WILLIAMS-SONOMA INC?

WILLIAMS-SONOMA INC (WSM) has a profitability rating of 9 / 10.


What is the valuation of WILLIAMS-SONOMA INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for WILLIAMS-SONOMA INC (WSM) is 21.7 and the Price/Book (PB) ratio is 10.98.


How sustainable is the dividend of WILLIAMS-SONOMA INC (WSM) stock?

The dividend rating of WILLIAMS-SONOMA INC (WSM) is 7 / 10 and the dividend payout ratio is 29.08%.