WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WSM - US9699041011 - Common Stock
199.04 USD
+1.23 (+0.62%)
199.04 USD
0 (0%)
WSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making WSM a very profitable company, without any liquidiy or solvency issues. WSM has a correct valuation and a medium 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.
In the past 5 years WSM has always been profitable.
In the past 5 years WSM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WSM (20.81%) is better than 97.54% of its industry peers.
WSM's Return On Equity of 53.45% is amongst the best of the industry. WSM outperforms 95.08% of its industry peers.
With an excellent Return On Invested Capital value of 31.18%, WSM belongs to the best of the industry, outperforming 96.72% 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 12.14%.
| 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 has a Profit Margin of 13.97%. This is amongst the best in the industry. WSM outperforms 95.90% of its industry peers.
In the last couple of years the Profit Margin of WSM has grown nicely.
The Operating Margin of WSM (18.12%) is better than 94.26% of its industry peers.
WSM's Operating Margin has improved in the last couple of years.
The Gross Margin of WSM (45.63%) is better than 71.31% 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.
The number of shares outstanding for WSM has been reduced compared to 1 year ago.
The number of shares outstanding for WSM has been increased compared to 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.
2.2 Solvency
WSM has an Altman-Z score of 7.33. This indicates that WSM is financially healthy and has little risk of bankruptcy at the moment.
WSM's Altman-Z score of 7.33 is amongst the best of the industry. WSM outperforms 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 | 7.33 |
ROIC/WACC3.2
WACC9.74%
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 in line compared to the rest of the industry. WSM outperforms 56.56% 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's Quick ratio of 0.60 is in line compared to the rest of the industry. WSM outperforms 57.38% 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.
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.
The Revenue has been growing slightly by 5.51% on average over the past years.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.90, WSM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 72.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, WSM is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.59, the valuation of WSM can be described as rather expensive.
61.48% of the companies in the same industry are more expensive than WSM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, WSM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 21.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSM is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSM indicates a somewhat cheap valuation: WSM is cheaper than 71.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.49 | ||
| EV/EBITDA | 13.67 |
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)33.42
PEG (5Y)0.75
EPS Next 2Y2.81%
EPS Next 3Y4.71%
5. Dividend
5.1 Amount
WSM has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 2.20, WSM pays a bit more dividend than its industry peers.
WSM's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| 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.
WSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.85%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
199.04
+1.23 (+0.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.79%
Inst Owner Change0%
Ins Owners0.4%
Ins Owner Change-7.77%
Market Cap23.76B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target202.51 (1.74%)
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-Date
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)-3.32%
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 | 21.9 | ||
| Fwd PE | 21.59 | ||
| P/S | 3 | ||
| P/FCF | 21.49 | ||
| P/OCF | 17.58 | ||
| P/B | 11.49 | ||
| P/tB | 11.94 | ||
| EV/EBITDA | 13.67 |
EPS(TTM)9.09
EY4.57%
EPS(NY)9.22
Fwd EY4.63%
FCF(TTM)9.26
FCFY4.65%
OCF(TTM)11.32
OCFY5.69%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)33.42
PEG (5Y)0.75
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 | 7.33 |
F-Score6
WACC9.74%
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 21.9 and the Price/Book (PB) ratio is 11.49.
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.