Williams-Sonoma (WSM) Stock Analysis
This is a peer-relative look at Williams-Sonoma (WSM): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Discretionary Distribution & Retail peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | WSM |
|---|---|
| Name | Williams-Sonoma, Inc. |
| Country/Region | United States |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Discretionary Distribution & Retail |
| GICS Industry | Specialty Retail |
| GICS Sub-Industry | Homefurnishing Retail |
| Market Capitalization | 29.92 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | July 7, 1983 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: WSM | Industry group median |
|---|---|---|
| Total Return (1Y) | 34.84% | 9.80% |
| Total Return (3Y, Annualized) | 54.88% | 9.74% |
| Total Return (5Y, Annualized) | 22.98% | -0.72% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: WSM | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 34.01% | 48.29% |
| Beta (5Y) | 1.48 | 1.08 |
| Max Drawdown (5Y) | -51.92% | -68.45% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: WSM | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.90 | 0.10 |
| Sortino Ratio (1Y) | 1.45 | 0.16 |
Profitability
ROE (TTM)
Williams-Sonoma (WSM) posts ROE of 54.96%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
WSM
Consumer Discretionary Distribution & Retail industry group
54.96%
Group distribution
- Max
- 62.17%
- WSM
- 54.96%
- Q3
- 29.44%
- Median
- 15.69%
- Q1
- 6.73%
- Min
- -12.16%
Largest peers
- HD
- 104.30%
- TJX
- 62.17%
- WSM
- 54.96%
- AMZN
- 27.42%
- PDD
- 22.75%
- BABA
- 6.36%
- LOW
- --
Net Margin (TTM)
Williams-Sonoma (WSM) keeps 14.73% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
WSM
Consumer Discretionary Distribution & Retail industry group
14.73%
Group distribution
- Max
- 16.94%
- WSM
- 14.73%
- Q3
- 8.69%
- Median
- 3.55%
- Q1
- 1.14%
- Min
- -9.41%
Largest peers
- PDD
- 20.43%
- AMZN
- 16.90%
- WSM
- 14.73%
- TJX
- 9.73%
- HD
- 8.41%
- LOW
- 7.35%
- BABA
- 7.04%
Operating Margin (TTM)
Williams-Sonoma (WSM) turns 17.27% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
WSM
Consumer Discretionary Distribution & Retail industry group
17.27%
Group distribution
- Max
- 21.45%
- WSM
- 17.27%
- Q3
- 10.89%
- Median
- 5.57%
- Q1
- 2.28%
- Min
- -7.12%
Largest peers
- PDD
- 24.71%
- WSM
- 17.27%
- AMZN
- 13.90%
- LOW
- 13.37%
- HD
- 12.86%
- TJX
- 10.91%
- BABA
- 7.30%
Profitability Metrics
| Metric | Current stock: WSM | Industry group median |
|---|---|---|
| ROE (TTM) | 54.96% | 15.69% |
| ROA (TTM) | 16.64% | 5.18% |
| Net Margin (TTM) | 14.73% | 3.55% |
| Operating Margin (TTM) | 17.27% | 5.57% |
| Gross Margin (TTM) | 45.69% | 38.87% |
Growth
Revenue Growth
Williams-Sonoma (WSM) grew revenue 1.24%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Williams-Sonoma (WSM) grew earnings per share 0.57%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: WSM | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 1.24% | 5.64% |
| Revenue Growth (3Y CAGR) | -3.45% | 3.32% |
| EPS Growth (YoY) | 0.57% | 0.28% |
| EPS Growth (3Y CAGR) | 2.70% | -5.08% |
Financial Strength
Current Ratio (MRQ)
Williams-Sonoma (WSM) has current ratio of 1.45, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
WSM
Consumer Discretionary Distribution & Retail industry group
1.45
Group distribution
- Max
- 2.62
- Q3
- 1.75
- WSM
- 1.45
- Median
- 1.35
- Q1
- 1.00
- Min
- 0.48
Largest peers
- PDD
- 2.62
- WSM
- 1.45
- BABA
- 1.36
- TJX
- 1.15
- LOW
- 1.11
- HD
- 1.08
- AMZN
- 0.99
Debt / Equity (MRQ)
Williams-Sonoma (WSM) has debt-to-equity ratio of 0.71, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.
WSM
Consumer Discretionary Distribution & Retail industry group
0.71
Group distribution
- Max
- 3.93
- Q3
- 2.14
- Median
- 1.25
- Q1
- 0.73
- WSM
- 0.71
- Min
- 0.01
Largest peers
- HD
- 3.80
- TJX
- 1.34
- WSM
- 0.71
- AMZN
- 0.50
- BABA
- 0.24
- PDD
- 0.01
- LOW
- --
Financial Strength Metrics
| Metric | Current stock: WSM | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.45 | 1.35 |
| Debt / Equity (MRQ) | 0.71 | 1.25 |
| Net Debt / EBITDA | 0.30 | 2.50 |
Dividends
Dividend Yield (TTM)
Williams-Sonoma (WSM) has dividend yield of 1.10%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
WSM
Consumer Discretionary Distribution & Retail industry group
1.10%
Group distribution
- Max
- 5.84%
- Q3
- 2.50%
- WSM
- 1.10%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- BABA
- 6.70%
- LOW
- 2.13%
- HD
- 1.32%
- TJX
- 1.31%
- WSM
- 1.10%
- AMZN
- 0.00%
- PDD
- 0.00%
Dividend Payout Ratio (TTM)
Williams-Sonoma (WSM) has payout ratio of 29.13%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
WSM
Consumer Discretionary Distribution & Retail industry group
29.13%
Group distribution
- Max
- 72.73%
- Q3
- 32.44%
- WSM
- 29.13%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HD
- 64.80%
- LOW
- 41.00%
- TJX
- 32.50%
- WSM
- 29.13%
- BABA
- 25.44%
- AMZN
- 0.00%
- PDD
- 0.00%
Dividend Metrics
| Metric | Current stock: WSM | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 1.10% | 0.00% |
| Dividend Payout Ratio (TTM) | 29.13% | 0.00% |
Valuation
P/E Ratio (TTM)
Williams-Sonoma (WSM) trades at P/E ratio of 26.06, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
WSM
Consumer Discretionary Distribution & Retail industry group
26.06
Group distribution
- Max
- 40.50
- WSM
- 26.06
- Q3
- 24.26
- Median
- 19.23
- Q1
- 12.64
- Min
- 4.67
Largest peers
- BABA
- 26.50
- WSM
- 26.06
- TJX
- 25.06
- HD
- 24.04
- AMZN
- 20.96
- LOW
- 18.98
- PDD
- 9.34
P/S Ratio (TTM)
Williams-Sonoma (WSM) trades at 3.74 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
WSM
Consumer Discretionary Distribution & Retail industry group
3.74
Group distribution
- Max
- 4.32
- WSM
- 3.74
- Q3
- 1.99
- Median
- 0.70
- Q1
- 0.26
- Min
- 0.03
Largest peers
- WSM
- 3.74
- AMZN
- 3.52
- TJX
- 2.39
- HD
- 2.03
- LOW
- 1.39
- PDD
- 0.26
- BABA
- 0.26
P/B Ratio (MRQ)
Williams-Sonoma (WSM) trades at 13.98 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
WSM
Consumer Discretionary Distribution & Retail industry group
13.98
Group distribution
- WSM
- 13.98
- Max
- 10.96
- Q3
- 5.26
- Median
- 2.16
- Q1
- 1.08
- Min
- -4.45
Largest peers
- HD
- 20.63
- TJX
- 13.99
- WSM
- 13.98
- AMZN
- 4.57
- PDD
- 1.74
- BABA
- 1.63
- LOW
- -16.94
Valuation Metrics
| Metric | Current stock: WSM | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 26.06 | 19.23 |
| P/S Ratio (TTM) | 3.74 | 0.70 |
| P/B Ratio (MRQ) | 13.98 | 2.16 |
| Free Cash Flow Yield (TTM) | 3.57% | 3.57% |