WILLIAMS-SONOMA INC (WSM) Stock Fundamental Analysis
NYSE:WSM • US9699041011
201.84 USD
-13.02 (-6.06%)
Last: Feb 23, 2026, 03:59 PM
WSM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 123 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 decent growth rate and is not valued too expensively.
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.
- WSM had positive earnings in each of the past 5 years.
- WSM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of WSM (20.81%) is better than 97.56% 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 96.75% of the companies in the same industry.
- The Return On Invested Capital of WSM (31.18%) is better than 96.75% of its industry peers.
- WSM had an Average Return On Invested Capital over the past 3 years of 32.30%. This is significantly above the industry average of 12.08%.
| 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 95.94% of its industry peers.
- In the last couple of years the Profit Margin of WSM has grown nicely.
- WSM's Operating Margin of 18.12% is amongst the best of the industry. WSM outperforms 95.12% 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 71.54% 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
- 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.
- Compared to 5 years ago, WSM has more shares outstanding
- 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
- An Altman-Z score of 7.70 indicates that WSM is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.70, WSM belongs to the best of the industry, outperforming 96.75% 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 | 7.7 |
ROIC/WACC3.26
WACC9.55%
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 60.16% 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 56.91% 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.
- Measured over the past years, WSM shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.28% on average per year.
- The Revenue has been growing slightly by 5.10% in the past year.
- 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 Y0.66%
EPS Next 2Y2.81%
EPS Next 3Y4.71%
EPS Next 5Y6.9%
Revenue Next Year3.48%
Revenue Next 2Y3.48%
Revenue Next 3Y3.67%
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
- With a Price/Earnings ratio of 22.20, WSM is valued on the expensive side.
- Based on the Price/Earnings ratio, WSM is valued a bit cheaper than 71.54% of the companies in the same industry.
- When comparing the Price/Earnings ratio of WSM to the average of the S&P500 Index (26.99), we can say WSM is valued inline with the index average.
- The Price/Forward Earnings ratio is 21.90, which indicates a rather expensive current valuation of WSM.
- Based on the Price/Forward Earnings ratio, WSM is valued a bit cheaper than 60.98% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.02, WSM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 21.9 |
4.2 Price Multiples
- WSM's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, WSM is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.79 | ||
| EV/EBITDA | 14.9 |
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)33.89
PEG (5Y)0.76
EPS Next 2Y2.81%
EPS Next 3Y4.71%
5. Dividend
5.1 Amount
- WSM has a Yearly Dividend Yield of 1.28%.
- Compared to an average industry Dividend Yield of 2.21, WSM pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.81, WSM is paying slightly less dividend.
| 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 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
- WSM pays out 27.85% of its income as dividend. This is a 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%
NYSE:WSM (2/23/2026, 3:59:58 PM)
201.84
-13.02 (-6.06%)
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-0.63%
Ins Owners0.4%
Ins Owner Change-7.99%
Market Cap24.10B
Revenue(TTM)7.91B
Net Income(TTM)1.11B
Analysts71.85
Price Target206.53 (2.32%)
Short Float %7.26%
Short Ratio7.68
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)1.85%
PT rev (3m)-1.4%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 21.9 | ||
| P/S | 3.05 | ||
| P/FCF | 21.79 | ||
| P/OCF | 17.83 | ||
| P/B | 11.65 | ||
| P/tB | 12.1 | ||
| EV/EBITDA | 14.9 |
EPS(TTM)9.09
EY4.5%
EPS(NY)9.22
Fwd EY4.57%
FCF(TTM)9.26
FCFY4.59%
OCF(TTM)11.32
OCFY5.61%
SpS66.27
BVpS17.32
TBVpS16.67
PEG (NY)33.89
PEG (5Y)0.76
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 | 7.7 |
F-Score6
WACC9.55%
ROIC/WACC3.26
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 Year3.48%
Revenue Next 2Y3.48%
Revenue Next 3Y3.67%
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 22.2 and the Price/Book (PB) ratio is 11.65.
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.