One-glance verdict
Overvalued
$138.00 our estimate vs market $222.49
Wall Street consensus: $211.58 (53.3% higher than our fair-value estimate)
61% above our estimate, beyond the bull case
Fundamentals snapshot
Williams-Sonoma, Inc.
WSM · NYQ · Consumer Cyclical · Specialty Retail
Current price
$222.49
52-week range
$161.76 - $244.65
Market cap
$26.20B
Balance sheet
Watch
759.10x Strong cushion
Net debt $841.96M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1.0% last year.
- Reward Returns 54.0% on equity, ahead of 75% of its peers.
- Risk Stock trades 45.8% above its 5-year average P/E.
- Risk Insider ownership is only 1.2% (peer median: 4.7%).
What this company does
Williams-Sonoma, Inc.
We couldn't generate the summary right now, but the rest of the dashboard still uses live market data.
How the company got here
Williams-Sonoma started in 1956 when its founder, Chuck Williams, opened a store in Sonoma, California, to sell the high-quality French cookware he had seen in Europe. The business grew, and in 1973, it launched its first mail-order catalog, which became a key part of its success. A major turning point was the purchase of Pottery Barn in 1986, which expanded the company from just kitchen products into home furnishings. Over the years, it has grown by creating new brands and buying others, becoming a large retailer with both physical stores and a major online presence.
What it actually does
Williams-Sonoma, Inc. is a specialty retailer that sells a wide variety of products for the home through its different brands. You might know them from their stores in the mall or their websites and catalogs. They sell everything from kitchenware and furniture to bedding, lighting, and decorative items. The company operates as a collection of distinct brands, each with its own style, to appeal to different tastes and life stages, from furnishing a first apartment to decorating a family home.
Pottery Barn
Pottery Barn is the company's largest brand and sells furniture, bedding, bath items, rugs, and decorative accessories with a classic, comfortable style. It's a major part of the business, making up a significant portion of total sales. This brand also includes Pottery Barn Kids and Pottery Barn Teen, which offer age-appropriate furnishings for children's rooms and nurseries, helping the company connect with families. Many people also use Pottery Barn for their wedding or baby gift registries.
West Elm
West Elm focuses on modern and contemporary furniture and home decor, often appealing to younger, more urban customers. This brand is known for its clean designs, sustainable products, and collaborations with artists. It represents a significant and growing part of the company's overall business. West Elm also has a strong business-to-business (a program where they sell products in bulk to other businesses like hotels or developers) program.
Williams Sonoma
This is the original brand that the company started with, centered on high-quality products for the kitchen and entertaining. It sells everything from cookware and bakeware to small kitchen electrics, cutlery, and specialty food items. While no longer the largest part of the company, it remains the foundation and a go-to source for people who are passionate about cooking. The stores often host cooking classes and demonstrations, making it a more experiential retail environment.
Other Brands
The company also operates several smaller, more specialized brands. Rejuvenation offers lighting, hardware, and vintage-inspired home goods. Mark and Graham focuses on personalized gifts and accessories, often with monograms. GreenRow is a newer brand centered on sustainably sourced home furnishings. These emerging brands are a smaller slice of the business but are part of the company's strategy for future growth.
What management is betting on now
Management is focused on growing its online business, which already accounts for a majority of its sales, making it a 'digital-first' retailer. They are also working to make their supply chain (the entire process of making and delivering a product) more efficient to improve profitability. Another key strategy is expanding their business-to-business sales and growing their newer, smaller brands. The company aims to win by offering unique products designed in-house and maintaining a premium brand image, rather than competing on the lowest price.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$215.06M
FY2025 Q3
$170.05M
FY2025 Q4
$566.27M
FY2026 Q1
$60.70M
FY2026 Q2
$230.69M
FY2026 Q3
$248.07M
FY2026 Q4
$515.99M
FY2027 Q1
$98.64M
Revenue
$1.81B
Net income
$231.36M
Diluted EPS
1.93
Operating cash flow
$156.32M
Free cash flow
$98.64M
Fetching…
Sources
Revenue
$2.36B
Net income
$368.02M
Diluted EPS
3.03
Operating cash flow
$596.92M
Free cash flow
$515.99M
Fetching…
Sources
Revenue
$1.88B
Net income
$241.59M
Diluted EPS
1.96
Operating cash flow
$316.29M
Free cash flow
$248.07M
Fetching…
Sources
Revenue
$1.84B
Net income
$247.56M
Diluted EPS
2.00
Operating cash flow
$282.73M
Free cash flow
$230.69M
Fetching…
Sources
Revenue
$1.73B
Net income
$231.26M
Diluted EPS
1.85
Operating cash flow
$118.95M
Free cash flow
$60.70M
Fetching…
Sources
Revenue
$2.46B
Net income
$384.89M
Diluted EPS
1.02
Operating cash flow
$633.48M
Free cash flow
$566.27M
Fetching…
Sources
Revenue
$1.80B
Net income
$248.95M
Diluted EPS
1.96
Operating cash flow
$253.46M
Free cash flow
$170.05M
Fetching…
Sources
Revenue
$1.79B
Net income
$225.75M
Diluted EPS
1.74
Operating cash flow
$246.50M
Free cash flow
$215.06M
Fetching…
Sources
Is it cheap or expensive?
Fair value $138.00 vs current price $222.49
Wall Street consensus is the average analyst price target: $211.58 (53.3% higher than our fair-value estimate).
Our most-likely fair value is $138.00 a share — about 38.0% below today's price of $222.49, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $842.0M. Interest coverage 759.1x.
Net debt
$841.96M
Interest coverage
759.10x
Williams-Sonoma, Inc.'s profit covers its interest bill about 759.1 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
WSM
BASELINE
Williams-Sonoma, Inc.
Total debt $1.49B Interest coverage 759.10x This is the baseline the peer rows are being compared against.
Total debt $4.02B Interest coverage 1.70x -100% vs WSM Carries about 447.3x less debt cushion than WSM.
Total debt $3.67B Interest coverage 0.78x -100% vs WSM Carries about 971.3x less debt cushion than WSM.
Total debt $2.01B Interest coverage 23.97x -97% vs WSM Carries about 31.7x less debt cushion than WSM.
Total debt $120.99M Interest coverage 256.51x -66% vs WSM Carries about 3.0x less debt cushion than WSM.
Total debt $599.71M Interest coverage 26.27x -97% vs WSM Carries about 28.9x less debt cushion than WSM.
What you should know
The case for and against WSM
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.0% last year.
-
Returns 54.0% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 45.8% above its 5-year average P/E.
-
Insider ownership is only 1.2% (peer median: 4.7%).
-
Operating margin compressed from 17.3% to 16.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.06x
Forward P/E
21.66x
P/B
12.69x
P/S
3.32x
EV/EBITDA
16.39x
PEG ratio
2.95x
Profitability
How much profit each dollar creates
Gross margin
46.1%
Operating margin
16.2%
Net margin
13.8%
ROE
54.0%
ROA
17.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.80x
Current ratio
1.33x
Quick ratio
0.45x
Total debt
$1.49B
Total cash
$651.60M
Growth
How the business has been compounding
Revenue TTM
$7.88B
Revenue 5Y CAGR
-1.4%
EPS TTM
8.88
EPS 5Y CAGR
2.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.35B
Free CF TTM
$1.06B
FCF margin
13.4%
Dividend
Shareholder payout
Yield
1.4%
Payout ratio
30.7%
Last ex-div date
2026-07-17