Williams-Sonoma Inc (WSM) Stock Analysis
Verdict: HOLD
WSM's elite 18% operating margins justify a premium over peers, but aggressive insider selling and zero analyst upside cap short-term gains.
Investment score: 62/100
Analysis as of
Is Williams-Sonoma Inc stock worth reviewing? The TradeMates thesis
WSM is a best-in-class retailer currently fully priced; hold for long-term compounding but wait for a better entry near $190 support.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 90/100 (weight 15%)
- Technical Momentum: 65/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 40/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Williams-Sonoma Inc opportunities and risks
What speaks for WSM
- B2B and Contract Growth
What speaks against WSM
- Management Signal via Insider Selling
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| WSM | 22.1x | 3.0x | 16.6x | 46.1% | 13.8% | 4.6% |
| W | n/a | 0.8x | 59.1x | 30.1% | -2.4% | 4.8% |
| RH | 22.4x | 0.8x | 13.4x | 44.1% | 3.6% | 8.9% |
| BOBS | 12.4x | 0.8x | 8.9x | 45.7% | 5.1% | 4.6% |
| ARHS | 14.8x | 0.7x | 7.6x | 38.7% | 4.7% | 1.4% |
| BBBY | n/a | 0.4x | n/a | 24.8% | -5.8% | -7.7% |
| Peer median | 12.4x | 0.8x | 8.9x | 38.7% | 3.6% | 4.6% |
Frequently asked questions about Williams-Sonoma Inc (WSM)
Is WSM stock a good investment?
The TradeMates model rates Williams-Sonoma Inc as HOLD with an investment score of 62/100. WSM is a best-in-class retailer currently fully priced; hold for long-term compounding but wait for a better entry near $190 support. This is algorithmic model output, not personal investment advice.
Is WSM stock a buy?
The TradeMates model verdict for WSM is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.