With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the nearly $300 billion domestic home category and $450 billion international home market, focused on expanding its exposure in the B2B ($80 billion total addressable market), marketplace, and franchise areas.
It is a $28.5B consumer company. Revenue shrank 16.4% over the last year, it keeps 14¢ of every dollar of sales as profit, and its net debt equals ~0.2 years of free cash flow. It trades at 23.3× earnings — near the highest of its own history.
- Website
- williams-sonomainc.com
- Location
- San Francisco, CA
- Employees
- 19 800
- Sector
- Consumer Cyclical
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability, health, quality and moat; Growth lags behind.
Valuation65
- P/E vs own history95th pct · 0/25
- FCF yield8.1% · 25/25
- P/S3.4x · 20/25
- EV/EBITDA15.0x · 20/25
Growth5
- Revenue CAGR-2.6% · 0/25
- Net income CAGR-0.9% · 0/25
- EPS CAGR ~5Y-19.1% · 0/25
- Fwd implied growth1.7% · 5/25
Profitability90
- ROIC30.3% · 25/25
- ROE57.8% · 25/25
- Net margin14.3% · 20/25
- Operating margin19.2% · 20/25
Health82
- Altman Z6.79 · 25/25
- Current ratio1.45 · 12/25
- Interest coverage779.2x · 25/25
- Net cash / debtD/A 9% · 20/25
Quality77
- Piotroski F4/9 · 10/25
- Beneish M-3.00 · 25/25
- FCF conversion97% · 22/25
- Margin stabilityσ 5.0% · 20/25
Moat82
- ROIC >12% years12/12 yrs · 25/25
- Median gross margin42.1% · 20/25
- FCF-positive years12/12 yrs · 25/25
- Worst-year net marginworst 4.3% · 12/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2022FinancialBest year on record$2.68B net income
- FY2019FinancialBecame debt-freecash now exceeds total debt
- FY2016FinancialProfitable every year on record12 consecutive profitable years in our data
- FY2016FinancialRevenue already above $10B$11.9B in first reported year
- FY2016FinancialPositive free cash flow every year since12-year streak
- 2012ProductThe company launched a lifestyle brand offering personalized products, Mark and Graham, in November 2012
- 2011AcquisitionThe company acquired Portland, Oregon-based Rejuvenation, a manufacturer and direct marketer of…
- 2002ProductThe West Elm brand was launched in 2002 with the release of a catalog
- 1998IPOIt was listed on the New York Stock Exchange starting in 1998
- 1986AcquisitionWilliams-Sonoma, Inc., acquired Pottery Barn from Gap
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (47.2%)
- Could repay net debt from ~0.5 years of free cash flow
- Interest covered 779.2× by operating earnings
- High returns on invested capital (ROIC 30.3%)
- Altman Z-Score 6.79 — low bankruptcy-risk zone
Watch-outs
- Revenue shrinking 16.4% year over year
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago-16.4% YoY
- Profitable — makes more than it spends$2.46B TTM
- Profit growing — earnings are higher than last year+2.7% YoY
- Generates cash — cash left after running and investing$2.31B TTM
- Debt under control — could handle its obligations~0.2y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$28.5B market cap
- Not printing shares — share count not ballooning — you keep your slice-13.9% shares over ~5y
- Proven track record — years of profitability behind it12/12 profitable years
- Financially stable — balance sheet not near distressAltman Z 6.8 — safe
- Pays a dividend — returns cash to shareholdersyield 1.22%
- Valuation not extreme — price not wildly above earningsP/E 23.3
Peer comparisonWilliams-Sonoma, Inc. vs 6 largest consumer cyclical peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| WSM this company | $28.5B | 23.3 | -16.4% | 14.3% | Strong |
| AMZN Amazon.Com Inc | $2.8T | 20.9 | +15.8% | 17.4% | Mixed |
| TSLA Tesla, Inc. | $1.5T | 397.1 | +11.8% | 3.7% | Strong |
| NFLX NetFlix Inc | $292.8B | 21.4 | +16.0% | 28.2% | Solid |
| HD Home Depot, Inc. | $290.4B | 20.4 | -16.0% | 8.7% | Solid |
| DIS The Walt Disney Company | $186.5B | 21.7 | +4.6% | 8.7% | Solid |
| MCD McDonald's Corporation | $166.9B | 18.9 | +6.3% | 31.7% | Strained |
Head-to-head: WSM vs AMZN · WSM vs TSLA · WSM vs NFLX
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2027. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/WSM
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of WSM on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $241.78 · market cap $28.5B.