📊 WSM Key Takeaways
Is Williams Sonoma Inc. (WSM) a Good Investment?
Williams Sonoma maintains exceptional financial strength with zero long-term debt, strong profitability margins (12.8% net margin), and healthy free cash flow generation of $98.6M. However, anemic revenue growth of 1.2% YoY and flat net income growth reflect a mature company facing sectoral headwinds with limited upside momentum.
Williams Sonoma Inc. Key Strengths (WSM)
- Zero long-term debt eliminates refinancing risk and provides exceptional financial flexibility
- Strong profitability metrics with 43.9% gross margin and 12.8% net margin demonstrate pricing power and operational efficiency in retail
- Substantial cash position of $651.6M combined with positive free cash flow enables strategic flexibility for dividends or investments
WSM Stock Risks: Williams Sonoma Inc. Investment Risks
- Revenue growth stalled at 1.2% YoY with net income flat (0.0% growth) indicating a mature business lacking momentum
- Quick ratio of 0.51x suggests heavy reliance on inventory conversion for liquidity and potential working capital constraints
- Weak returns on equity (12.4%) and assets (4.6%) despite strong margins indicate capital allocation inefficiency and challenged profitability sustainability
Key Metrics to Watch
- Revenue growth trajectory - must demonstrate acceleration from 1.2% to indicate business recovery
- Quick ratio trends and inventory turnover - critical for working capital health in retail
- Free cash flow conversion and capital expenditure efficiency - sustainability of cash generation amid growth stagnation
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. has mixed fundamental signals 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 |
|---|---|---|---|
| Q1 2026 | $1.7B | $231.3M | $1.85 |
| 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 |
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 grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WSM's key strengths?
Claude: Zero long-term debt eliminates refinancing risk and provides exceptional financial flexibility. Strong profitability metrics with 43.9% gross margin and 12.8% net margin demonstrate pricing power and operational efficiency in retail.
What are the risks of investing in WSM?
Claude: Revenue growth stalled at 1.2% YoY with net income flat (0.0% growth) indicating a mature business lacking momentum. Quick ratio of 0.51x suggests heavy reliance on inventory conversion for liquidity and potential working capital constraints.
What is WSM's revenue and growth?
Williams Sonoma Inc. reported revenue of $1.8B.
Does WSM pay dividends?
Williams Sonoma Inc. pays dividends, with $85.6M 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 $1.93.
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 grade reflects both perspectives for balanced insights.
What is WSM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Williams Sonoma Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WSM stock overvalued or undervalued?
Valuation metrics for WSM: ROE of 12.4% (sector avg: 18%), net margin of 12.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is WSM's AI grade for 2026?
Our dual AI analysis gives Williams Sonoma Inc. a combined B grade 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 $156.3M, with capital expenditures of $57.7M. FCF margin is 5.5%.
How does WSM compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 12.8% (avg: 8%), ROE 12.4% (avg: 18%), current ratio 1.33 (avg: 1.5).