Williams-Sonoma (WSM)
Consumer Discretionary · $30.5B market cap · SEC CIK 0000719955
ahead of 60% of the S&P 500 · #19 of 48 in Consumer Discretionary
Next reports on Nov 17, 2026, before the open, with analysts expecting $2.20 in earnings per share.
52-week range $165.51 to $274.45. 5% below its 52-week high and 58% above its low.
The case for WSM
- Earns 58% back on shareholder equity.
- Carries essentially no debt.
- Pays a modest 1.6% dividend.
The case against
- Pricey for its growth: 25.8× earnings, where 7% a year of growth plus a 1.6% dividend would justify about 21×.
- Swings harder than the market (beta 1.55).
- Revenue grew only 2.2%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 37 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 40 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 78 |
| Momentumhow the price has behaved lately | 76 |
| Stabilityhow violently it moves, what it owes and what it pays you | 68 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +2.2% |
|---|---|
| Over 5 years | +2.9% a year |
| FY2025 revenue | $7.8B (+1%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $1.1B |
|---|---|
| Of revenue | 14% |
| Of profit | 97% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 47% |
|---|---|
| Operating margin | 19% |
| Net margin, FY24 → FY25 → now | 14.6% → 13.9% → 14.7% |
Debt vs. cash
Is the balance sheet healthy? Yes, little debt
| Cash | $1.0B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
| Years to repay | n/a |
| Debt / equity | 0.00× |
Valuation
Is the stock price reasonable? A bit pricey
| P/E | 25.8× |
|---|---|
| Fair P/E for its growth | 21× |
| P/FCF | 28.9× |
| Forward P/E | 24.7× |
| EV / EBITDA | 16.6× |
At 25.8× earnings it trades above the 21× that 7% a year of growth plus a 1.6% dividend would justify. At 28.9× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Williams-Sonoma's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $7.8B | $7.7B | $7.8B | $8.7B | $8.2B |
| Change on the year | +1% | −1% | −11% | +5% | — |
| Free cash flow | |||||
| Free cash flow | $1.1B | $1.1B | $1.5B | $699M | $1.1B |
| Of revenue | 14% | 15% | 19% | 8% | 14% |
| Profit margins | |||||
| Gross margin | 46.2% | 46.5% | 42.6% | 42.4% | 44.0% |
| Operating margin | 18.1% | 18.5% | 16.1% | 17.3% | 17.6% |
| Net margin | 13.9% | 14.6% | 12.3% | 13.0% | 13.7% |
| Debt vs. cash | |||||
| Cash | $1.0B | $1.2B | $1.3B | $367M | $850M |
What Williams-Sonoma says it does
OVERVIEW Williams-Sonoma, Inc., (the “Company”, “we”, or “us”) incorporated in 1973, is an omni-channel specialty retailer of high-quality products for the home. In 1956, our founder, Chuck Williams, turned a passion for cooking and eating with friends into a small business with a big idea. He opened a store in Sonoma, California to sell the French cookware that intrigued him while visiting Europe but that could not be found in America. Chuck’s business, which set a standard for customer service, took off and helped fuel a revolution in American cooking and entertaining that continues today. In the decades that followed, our commitment to product quality, our ability to identify new market opportunities and our people-first business approach have driven our expansion beyond the kitchen into nearly every area of the home, as well as the places where our customers work, stay and play. Our in-house design capabilities and vertically…