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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Williams-Sonoma, Inc. (NYSE:WSM), it is a financially-sound , dividend-paying company with a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Williams-Sonoma here.
Excellent balance sheet established dividend payer
WSM delivered a bottom-line expansion of 28% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 29%, which is an optimistic signal for the future. WSM’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that WSM has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. WSM appears to have made good use of debt, producing operating cash levels of 1.96x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
WSM is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Williams-Sonoma, I’ve put together three key factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for WSM’s future growth? Take a look at our free research report of analyst consensus for WSM’s outlook.
- Valuation: What is WSM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WSM is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WSM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.