📊 WSM Key Takeaways
Is Williams Sonoma Inc. (WSM) a Good Investment?
Williams Sonoma demonstrates exceptional profitability and capital efficiency with 46.2% gross margins and 52.3% ROE, coupled with zero debt and strong 1.1B annual free cash flow generation. However, growth stagnation (1.2% revenue, 0.0% net income YoY) indicates market headwinds in home goods retail that limit upside potential despite fortress-like financial fundamentals.
Why Buy Williams Sonoma Inc. Stock? WSM Key Strengths
- Exceptional profitability: 46.2% gross margin and 18.1% operating margin are industry-leading for retail
- Outstanding capital returns: 52.3% ROE and 20.1% ROA demonstrate highly efficient asset utilization
- Fortress balance sheet: Zero long-term debt with 1.0B cash and 1.1B annual free cash flow provides maximum strategic flexibility
- Quality earnings: FCF margin of 13.5% shows strong cash conversion and earnings quality
WSM Stock Risks: Williams Sonoma Inc. Investment Risks
- Growth stagnation: Net income flat YoY despite revenue growth suggests margin compression and operational headwinds
- Anemic top-line expansion: 1.2% revenue growth indicates structural challenges in home goods retail sector
- Liquidity concern: Quick ratio of 0.64x is below 1.0x, signaling potential inventory liquidity risks
- Cyclical retail exposure: Consumer discretionary demand sensitivity and omnichannel competition pressures
Key Metrics to Watch
- Revenue growth acceleration and gross margin sustainability
- Net income recovery toward positive YoY growth
- Free cash flow trend and capital allocation strategy
Williams Sonoma Inc. (WSM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Williams Sonoma Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
WSM Profit Margin, ROE & Profitability Analysis
WSM vs Consumer Sector: How Williams Sonoma Inc. Compares
How Williams Sonoma Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Williams Sonoma Inc. Stock Overvalued? WSM Valuation Analysis 2026
Based on fundamental analysis, Williams Sonoma Inc. appears fundamentally strong relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Williams Sonoma Inc. Balance Sheet: WSM Debt, Cash & Liquidity
WSM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Williams Sonoma Inc.'s revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $7.28 reflects profitable operations.
WSM Revenue Growth, EPS Growth & YoY Performance
WSM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.8B | $216.9M | $1.87 |
| Q2 2025 | $1.8B | $216.9M | $1.67 |
| Q1 2025 | $1.7B | $231.3M | $1.85 |
| Q3 2024 | $1.8B | $156.5M | $1.83 |
| Q2 2024 | $1.8B | $156.5M | $1.56 |
| Q1 2024 | $1.7B | $156.5M | $2.35 |
| Q3 2023 | $1.9B | $156.5M | $3.66 |
| Q2 2023 | $1.9B | $156.5M | $3.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Williams Sonoma Inc. Dividends, Buybacks & Capital Allocation
WSM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Williams Sonoma Inc. (CIK: 0000719955)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WSM
What is the AI rating for WSM?
Williams Sonoma Inc. (WSM) has an AI rating of BUY with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WSM's key strengths?
Claude: Exceptional profitability: 46.2% gross margin and 18.1% operating margin are industry-leading for retail. Outstanding capital returns: 52.3% ROE and 20.1% ROA demonstrate highly efficient asset utilization.
What are the risks of investing in WSM?
Claude: Growth stagnation: Net income flat YoY despite revenue growth suggests margin compression and operational headwinds. Anemic top-line expansion: 1.2% revenue growth indicates structural challenges in home goods retail sector.
What is WSM's revenue and growth?
Williams Sonoma Inc. reported revenue of $7.8B.
Does WSM pay dividends?
Williams Sonoma Inc. pays dividends, with $316.5M distributed to shareholders in the trailing twelve months.
Where can I find WSM SEC filings?
Official SEC filings for Williams Sonoma Inc. (CIK: 0000719955) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WSM's EPS?
Williams Sonoma Inc. has a diluted EPS of $8.84.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WSM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Williams Sonoma Inc. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WSM stock overvalued or undervalued?
Valuation metrics for WSM: ROE of 52.3% (sector avg: 18%), net margin of 13.9% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy WSM stock in 2026?
Our dual AI analysis gives Williams Sonoma Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WSM's free cash flow?
Williams Sonoma Inc.'s operating cash flow is $1.3B, with capital expenditures of $259.4M. FCF margin is 13.5%.
How does WSM compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 13.9% (avg: 8%), ROE 52.3% (avg: 18%), current ratio 1.39 (avg: 1.5).
Why is WSM's return on equity (ROE) so high?
Williams Sonoma Inc. has a return on equity of 52.3%, significantly above the Consumer sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 13.9% net margin.