Williams-Sonoma, Inc. ranks near the peer group median, with profitability as the main structural strength, while stability is less supportive than the other dimensions. Price action is running ahead of the structural profile — the setup is more market-led than fundamentals-led for now.
Peer-relative scores, weakest to strongest
Williams-Sonoma, Inc. is a retailer specializing in home furnishings and kitchenware. The company operates across both consumer and B2B channels.
Williams-Sonoma delivers strong returns, but the premium is not securely anchored. The company posts a ROIC of 36.5%, well above the industry average and signaling excellent capital efficiency. Yet, a maximum drawdown of -51.9%—far steeper than most peers—shows that the stock is subject to sharp market reactions when uncertainty arises. Investors continue to price Williams-Sonoma as a cyclical retailer, amplifying every earnings report and treating robust fundamentals as insufficient protection against volatility. As a premium retailer expanding into B2B, Williams-Sonoma’s valuation depends on trust in sustainable differentiation versus traditional retailers. Strong company, but the premium stands on shaky ground.
Break down WSM's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.