Williams-Sonoma, Inc. (WSM)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses at sensible prices. Williams-Sonoma sells home and kitchen goods through stores and online, spanning cooking, dining, furnishings, and decor. The filed numbers show a high-quality retailer: in fiscal Q2 2026, the quarter ended 2026-08-02, revenue was $2.0B, net income $338.1M, and diluted EPS $2.84; fiscal Q2 2025, the quarter ended 2025-08-03, had revenue $1.8B, net income $247.6M, and diluted EPS $2.00. For FY2025, ended 2026-02-01, revenue was $7.8B, net income $1.1B, and diluted EPS $8.84, up from FY2023, ended 2024-01-28, when diluted EPS was $7.28. The cash engine is strong: FairStock reports trailing free cash flow of $1.3B and a 4.8% FCF yield at the 2026-10-13 close, with Piotroski 7/9 and Altman 6.26. Returns are exceptional, ROE 54.96% and ROCE 16.64%, though D/E 0.71 adds leverage. The moat is brand and omni-channel scale in home goods, but retail is competitive and cyclical. Valuation is the rub. At $239.98, FairStock calculates P/E 24.61, P/B 15.11, EV/EBITDA 16.27, and Graham Number $63.15, a -280.02% margin of safety. PEG 0.67 and FairStock Score 70/100 suggest growth is doing work. The computed Lynch category is STALWART: steady profit growth of 9.8% a year over five years, with revenue growth of 2.9%. I want a wider discount before calling it a bargain.

In plain English: Williams-Sonoma sells home, kitchen, and dining products through stores and online. The business looks strong: in fiscal Q2 2026, the quarter ended 2026-08-02, it earned $338.1M on $2.0B of sales, and it generates plenty of cash. At the 2026-10-13 closing price of $239.98, the stock looks expensive compared with the value of its net assets, though it looks more reasonable when measured against its recent profit growth.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-02) · fiscal Q1 2026 10-Q (period ended 2026-05-03) · fiscal Q3 2025 10-Q (period ended 2025-11-02) · fiscal Q2 2025 10-Q (period ended 2025-08-03) · FY2025 10-K (period ended 2026-02-01) · FY2024 10-K (period ended 2025-02-02) · FY2023 10-K (period ended 2024-01-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer