Williams Sonoma Inc (WSM)
Consumer Discretionary · Homefurnishing Retail · US stock · S&P 500 component
$260.80
▲ +7.48 (2.95%)
Fair valueOvervalued
$213 −18.2% to fair value
$107fair band $182–$259$320
Day's range
$252.34 – $261.11
52-week range
$165.51 – $261.11
About Williams Sonoma Inc
Williams-Sonoma is a specialty retailer of home furnishings and kitchenware. Its brands include Williams Sonoma, Pottery Barn, West Elm and Rejuvenation, which offer furniture, cookware, decor and bedding through stores, catalogs and websites. Most revenue now comes from online sales. The company designs much of its own product range and sources goods from manufacturers in several countries.
Trailing twelve-month revenue stands at $8.0 billion. Revenue has shrunk by 3.5% a year across three years. It posts an operating margin of 19.2%, with return on invested capital of 104%. The dividend yield is 1.1%. Overall, the X-Ray Score comes to 51 out of 100. These figures describe past results as reported and are a factual snapshot, not a forecast. Some measures, such as margins for real estate trusts and banks, are defined differently from those of industrial firms, so comparisons should be made with care.
Price chart
52-wk range $165.51 – $261.11Volume 1,101,468Daily, split-adjusted
Vitals
Market cap$31.0B
52-week range$165.51 – $261.11
Volume (last day)1,101,468
P/E (TTM)26.8
EBIT / EV yield5.1%
Free-cash-flow yield4.3%
Dividend yield1.1%
Revenue (TTM)$8.0B
Net income (TTM)$1.2B
Operating margin19.2%
Return on capital103.5%
Debt incl. leasesData missing
Cash & securities$1.0B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$213middle half of models $214 – $226
Overvalued
−18.2% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Low, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $261
Undervalued < $182Fair $182 – $259Overvalued > $259
P/E multiple
$250
P/B multiple
$219
P/S multiple
$202
EV/EBITDA multiple
$239
EV/EBIT multiple
$226
EV/revenue multiple
$219
10-year DCF, EBITDA exit
$216
5-year DCF, EBITDA exit
$229
10-year DCF, revenue exit
$214
5-year DCF, revenue exit
$226
10-year DCF, growth exit
$162
5-year DCF, growth exit
$159
Dividend discount, stable · not used
$84
Dividend discount, multi-stage · not used
$93
Earnings power value
$215
Growth the price implies
14.4%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, priced high
Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Consumer Discretionary peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
29/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield5.1%
Free-cash-flow yield4.3%
Fair value vs price0.8×
Growth
Weak
32/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)-3.5%
EPS growth (3y)2.7%
Growth consistency60%
Profitability
Strong
82/100
Earns high returns on the capital it uses.
See the numbers →
Return on invested capital103.5%
Operating margin19.2%
Gross profitability68.6%
Financial health
Fair
52/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score4 / 9
Interest coverNo interest cost
Dividends
Fair
60/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.1%
Dividends vs free cash flow26%
Dividend growth13.3%
Quarterly results: last 6 quarters
+4.2%
May '25
+2.7%
Aug '25
+4.6%
Nov '25
-4.3%
Feb '26
+4.4%
May '26
+6.7%
Aug '26
Revenue against the same quarter a year earlier. Latest quarter revenue $2.0B, diluted EPS $2.84.
SWOT analysis: Williams Sonoma Inc
Strengthsinside the company
- Return on invested capital is 103.5%, against a median of 24.2% for sector peers.
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Revenue has fallen 3.5% a year over three years while sector peers grew 6.6%.
Opportunitiesvaluation and setting
- Dividends use only 26% of free cash flow, which leaves room to raise them.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- The price is 18% above our fair value estimate, so there is little room for disappointment.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare WSM with peers and sector
Medians of 46 Consumer Discretionary peers and of 46 Consumer Discretionary stocks in our universe.
Largest peers (X-Ray Score): AMZN 42, TSLA 28, HD 40, MCD 53, TJX 55, BKNG 70.
| Metric | WSM | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 51 | 50 | 50 |
| Valuation | 29 | 49 | 49 |
| Growth | 32 | 53 | 53 |
| Profitability | 82 | 52 | 52 |
| Financial health | 52 | 49 | 49 |
| Dividends | 60 | 51 | 51 |
Sector leaders: highest X-Ray Score in Consumer Discretionary
WSM ranks #23 of 47 in Consumer Discretionary by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for WSM
Each factor is rated by where WSM stands among the 47 Consumer Discretionary stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 9 Good · 7 Average · 6 Bad of 22
Growth: 0 · 1 · 2
Profitability: 4 · 1 · 0
Financial strength: 2 · 0 · 1
Valuation: 0 · 2 · 3
Cash flow: 2 · 2 · 0
Efficiency: 1 · 1 · 0
| Factor | WSM | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | −3.5% | Bad beats 3% | +6.5% | – | – |
| Revenue growth, last year | +1.2% | Bad beats 23% | +4.9% | +1.2% | ≈ In line |
| EPS growth, 3 years a year | +2.7% | Average beats 49% | +4.0% | – | – |
| Profitability | |||||
| Gross margin | 47.2% | Average beats 56% | 42.5% | 44.0% | ≈ In line |
| Operating margin | 19.2% | Good beats 70% | 14.9% | 17.6% | ≈ In line |
| Net margin | 14.7% | Good beats 79% | 11.4% | 13.7% | ≈ In line |
| Return on invested capital | 103.5% | Good beats 94% | 24.6% | – | – |
| Return on equity | 55.1% | Good beats 74% | 35.3% | 52.5% | ≈ In line |
| Financial strength | |||||
| Interest cover | 50.0x | Good beats 76% | 25.3x | – | – |
| Current ratio | 1.45 | Good beats 73% | 1.10 | 1.39 | ≈ In line |
| Piotroski F-score | 4 / 9 | Bad beats 9% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 26.3x | Bad beats 32% | 21.1x | 14.3x | ▼ Worse |
| Price / book | 14.5x | Bad beats 24% | 7.2x | 6.4x | ▼ Worse |
| Price / sales | 3.9x | Bad beats 27% | 2.1x | 1.8x | ▼ Worse |
| EV / EBITDA | 17.0x | Average beats 34% | 15.0x | – | – |
| Free cash flow yield | 4.3% | Average beats 49% | 4.3% | 8.0% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 16.8% | Good beats 75% | 10.8% | 13.9% | ▲ Better |
| Cash from operations / net income | 1.37 | Average beats 49% | 1.37 | 1.21 | ▲ Better |
| Free cash flow growth, 3 years a year | +14.7% | Average beats 61% | +12.1% | – | – |
| Accruals (lower is better) | −7.8% | Good beats 78% | −5.3% | – | – |
| Efficiency | |||||
| Inventory turnover | 2.9x | Average beats 37% | 4.2x | 3.1x | ≈ In line |
| Days sales outstanding | 7 days | Good beats 74% | 14 days | 6 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 7 Good · ● 4 Average · ● 4 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldAverage
Risk models
Altman Z''Good
Piotroski F-ScoreBad
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioGood
Interest coverGood
Valuation
Fair value vs priceBad
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 55/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $8.2B | $8.7B | $7.8B | $7.7B | $7.8B |
| Operating income | $1.5B | $1.5B | $1.2B | $1.4B | $1.4B |
| Net income | $1.1B | $1.1B | $950M | $1.1B | $1.1B |
| Operating cash flow | $1.4B | $1.1B | $1.7B | $1.4B | $1.3B |
| Operating margin | 17.6% | 17.3% | 16.1% | 18.5% | 18.1% |
| Free cash flow | $1.1B | $699M | $1.5B | $1.1B | $1.1B |
| Diluted EPS | $14.75 | $8.16 | $7.28 | $8.79 | $8.84 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
12 bullish · 0 neutral · 4 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Strongly bullish
7 bullish · 0 neutral · 1 bearish
Moving averages (daily)
| SMA 10 | 247.9 | Bullish |
| EMA 10 | 249.3 | Bullish |
| SMA 20 | 241.0 | Bullish |
| EMA 20 | 243.3 | Bullish |
| SMA 50 | 234.4 | Bullish |
| EMA 50 | 236.0 | Bullish |
| SMA 100 | 230.3 | Bullish |
| EMA 100 | 227.8 | Bullish |
| SMA 200 | 211.6 | Bullish |
| EMA 200 | 215.3 | Bullish |
Oscillators (daily)
| RSI (14) | 73.84 | Bearish |
| MACD (12, 26) | 6.65 | Bullish |
| Momentum (12) | 7.98 | Bullish |
| Stochastic %K (14) | 98.97 | Bearish |
| Williams %R (14) | -1.03 | Bearish |
| CCI (20) | 161.9 | Bearish |
Pivot points (classic, last session)
S3 246.3 | S2 249.3 | S1 255.1 | Pivot 258.1 | R1 263.8 | R2 266.9 | R3 272.6 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
2.94 USD
Yield on today's price
1.13%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.7600 | |
| 0.7600 | |
| 0.7600 | |
| 0.6600 | |
| 0.6600 | |
| 0.6600 | |
| 0.6600 | |
| 0.5700 | |
| 0.5700 | |
| 0.5700 | |
| 1.1300 | |
| 0.9000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold WSM
| ETF | Share of the fund |
|---|---|
| XHB SPDR S&P Homebuilders | 3.34% |
| RDVY First Trust Rising Dividend Achievers | 2.12% |
| RDVI FT Cboe Vest Rising Dividend Achievers... | 2.08% |
| SDVY First Trust SMID Cap Rising Dividend A... | 0.98% |
| FQAL Fidelity Quality Factor | 0.88% |
| SPHB Invesco S&P 500 High Beta | 0.86% |
| QUAL iShares MSCI USA Quality Factor | 0.69% |
| XLY Consumer Discretionary Select Sector S... | 0.68% |
The eight funds with the largest weight in WSM among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
WSM stock splits
WSM has split its stock 6 times since 1990. The latest was a 2-for-1 split on 9 Jul 2024.
Full WSM stock split history →WSM SEC filings
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
10-KSEC EDGAR
Annual report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.