Williams-Sonoma, Inc.

Williams-Sonoma, Inc.

WSMยทNYSE

$207.11

+1.6%
Consumer CyclicalSpecialty Retail

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids accessories under the Pottery Barn Kids brand; and an organic bedding to multi-purpose furniture under the Pottery Barn Teen brand. In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; and women's and men's accessories, travel, entertaining and bar, home dรฉcor, and seasonal items under the Mark and Graham brand, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and dรฉcor industry. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. It operates 544 stores comprising 502 stores in 41states, Washington, D.C., and Puerto Rico; 20 stores in Canada; 19 stores in Australia; 3 stores in the United Kingdom; and 139 franchised stores, as well as e-commerce websites in various countries in the Middle East, the Philippines, Mexico, South Korea, and India. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.

At a Glance

Live Snapshot
Market Cap$24.39B
EPS8.9600
P/E Ratio23.11
Earnings Date08/26/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 23.1).

Valuation inputs: P/E 23.1, earnings yield +4.3%, momentum +1.6%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +52.3%, ROIC +28.8%).

Profitability stack: net margin +13.9%, ROE +52.3%, ROIC +28.8%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +61.5%, momentum +1.6%, net margin +13.9%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

wsm

Williams-Sonoma, Inc. Market vs Earnings Trajectory

WSM ยท NYSE

Loading price and EPS data...

Williams-Sonoma, Inc.

Williams-Sonoma, Inc. Fair Value Envelope

WSM ยท NYSE

Our analysis suggests that WSM has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $207.11, this represents a potential HIDDEN relative to our calculated worth for Williams-Sonoma, Inc..

Intrinsic Value
Current Price: $207.11
3Y+8.0%
5Y+103.0%
10Y+420.0%
3Y-10.0%
5Y+15.0%
10Y+54.0%
3Y-3.0%
5Y+60.0%
10Y+256.0%
3Y+25.0%
5Y+3.0%
10Y+151.0%
3Y+51.0%
5Y-5.0%
10Y+222.0%
3Y+16.0%
5Y+16.0%
10Y+118.0%
Williams-Sonoma, Inc.

Williams-Sonoma, Inc. Profit Bridge

WSM ยท NYSE
Revenue7.81B
Cost of Goods Sold (4.20B)
Gross Profit3.60B
Operating Expenses (2.19B)
Operating Income1.42B
Interest Expense (0.00)
Other Income/Expense36.84M
Pretax Income1.45B
Income Tax (364.12M)
Net Income1.09B
Net Income
1.09B

Profitability Analysis

Gross Margin

46.2%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

18.1%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

13.9%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

25.1%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

46.15%
Gross Profit Margin
-1%
3Y+9.0%
5Y+19.0%
10Y+25.0%
18.13%
Operating Profit Margin
-2%
3Y+5.0%
5Y+35.0%
10Y+95.0%
13.94%
Net Profit Margin
-4%
3Y+7.0%
5Y+39.0%
10Y+132.0%
52.26%
Return on Equity
3Y-21.0%
5Y+27.0%
10Y+114.0%
20.11%
Return on Assets
-5%
3Y-17.0%
5Y+38.0%
10Y+63.0%
28.83%
Return on Invested Capital
-4%
3Y-17.0%
5Y+38.0%
10Y+43.0%
WSM

Williams-Sonoma, Inc. Cash Conversion Engine

WSM ยท NYSE
Net Income1.09B
Depreciation & Amortization231.45M
Stock-Based Compensation106.52M
Change in Working Capital-388.53M
Others256.70M
Capital Expenditures-259.44M
Free Cash Flow1.06B

Cash Flow Quality Analysis

FCF Conversion Rate

97.0%

Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.

CapEx Intensity

19.7%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-7.3%

Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.

Working Capital Impact

-$388.53M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

wsm

Williams-Sonoma, Inc. Funding & Solvency Profile

WSM ยท NYSE
Cash & Cash Equivalents651.60M
Net Receivables139.35M
Inventory1.46B
Other Current Assets19.70M
Total Current Assets2 B
Property, Plant & Equipment2.40B
Goodwill & Intangible Assets77.39M
Long-Term Investments0.00
Other Non-Current Assets154.68M
Total Non-Current Assets3 B
Total Assets
5.06B

Financial Health Analysis

Current Ratio

1.34x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

1.70x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

589 M

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

46% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

wsm

Williams-Sonoma, Inc. Street Expectations Map

WSM ยท NYSE

Wall Street analysts project that WSM stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 205.29, with estimates ranging from a low of 190.00 to a high of 230.00.

Lowest Target
190.00
-8.26%
Consensus Target
205.29
-0.88%
Highest Target
230.00
11.05%

The consensus 1-year price target stands at 205.29, with estimates ranging from a low of 190.00 to a high of 230.00.

Analyst Consensus Analysis

Upside Potential

-0.9%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

19.5% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Risk-Reward Profile

1.34x

Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.

wsm

Williams-Sonoma, Inc. Insider Positioning

WSM ยท NYSE

During the last 12 months, insiders have sold $16.38M worth of WSM shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

45.0K

8.65M

Net Activity

-8.7M

-$8.65M

3-6 Months

Bought

0

0.00

Sold

7.7K

1.59M

Net Activity

-1.6M

-$1.59M

6-9 Months

Bought

0

0.00

Sold

27.4K

5.42M

Net Activity

-5.4M

-$5.42M

9-12 Months

Bought

0

0.00

Sold

4.2K

722.23K

Net Activity

-722K

-$722K

Top Buyers

No buying activity

Top Sellers

1
AL

Alber Laura

Director, Officer: President & Ceo

59.4K sharesโ€ข8 transactions

$11.38M

2
KDR

King David Randolph

Officer: Evp General Counsel

17.5K sharesโ€ข1 transactions

$3.56M

3
YK

Yearout Karalyn

Officer: Evp Chief Talent Officer

4.3K sharesโ€ข2 transactions

$840K

4
HJ

Howie Jeffrey

Officer: Evp Chief Financial Officer

3.2K sharesโ€ข3 transactions

$597K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $16.38M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$8.65M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

4 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.41%
Dividend Yield
31%
3Y-45.0%
5Y+20.0%
10Y-41.0%
ย 

wsm Dividend History

WSM
10Y CAGR +15%
Latest $0.76
Annual $3.4
5 year growth trend
Last Period: +15%