WSM
9/9 ScoreWilliams-Sonoma, Inc.
Analysis Date: February 17, 2026
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 décor, 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 décor 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.
Buffettology Criteria
All 9 of 9 criteria passed
High ROE
Return on Equity > 12%
Value: 51.9%
High ROIC
Return on Invested Capital > 9%
Value: 29.2%
Cash Machine
FCF / Assets > 5%
Value: 21.5%
Fair Valuation
Earnings Yield > 3.5%
Value: 4.2%
Share Buybacks
Share Count is Dropping
Value: -2.3%
Defensible Moat
Gross Profit Margin > 40%
Value: 45.6%
Simple Business
Not in a speculative sector (e.g., Biotech)
Value: Consumer Cyclical
Conservative Debt
Debt to Equity < 1.5
Value: 0.71x
Consistent Growth
5-Year Growth is Positive
Value: 291.1%
Analysis Summary
This company, Williams Sonoma, shows a strong financial picture, with excellent returns on both equity and invested capital, signaling efficient operations. The healthy "cash machine" metric and conservative debt levels provide a good margin of safety, while the significant moat suggests enduring competitive strength. It certainly merits further consideration for the portfolio.
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