Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Williams-Sonoma's 3-Year RORE % for the quarter that ended in Apr. 2026 was 0.83%.
The industry rank for Williams-Sonoma's 3-Year RORE % or its related term are showing as below:
STU:WM1's 3-Year RORE % is ranked better than 50.29% of 1052
companies
in the Retail - Cyclical industry
Industry Median: 4.085
vs STU:WM1: 0.83
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Williams-Sonoma 3-Year RORE % Related Terms
Williams-Sonoma 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Williams-Sonoma's 3-Year RORE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:WM1 vs CASY, DKS, ULTA: 3-Year RORE % Comparison
For the Specialty Retail subindustry, Williams-Sonoma's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Williams-Sonoma 3-Year RORE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Williams-Sonoma's 3-Year RORE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Apr. 2026 and 3-year before.
Williams-Sonoma (STU:WM1) has a 3-Year RORE % of 0.83 as of Apr. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Williams-Sonoma and its competitors. According to the industry distribution chart, Williams-Sonoma ranks #523 out of 1052 companies in the Retail - Cyclical industry, placing it in the top 49.7%.
Is Williams-Sonoma's 3-Year RORE % too high?
Williams-Sonoma's current 3-Year RORE % is 0.83. The Retail - Cyclical industry median 3-Year RORE % is 4.09. Williams-Sonoma's value of 0.83 is 79.7% below this industry median. Based on the distribution chart, Williams-Sonoma ranks #523 out of 1052 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Williams-Sonoma has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Williams-Sonoma's 3-Year RORE % compare to CASY and DKS?
According to the Retail - Cyclical industry distribution chart, Williams-Sonoma ranks #523 out of 1052 companies for 3-Year RORE %. This puts Williams-Sonoma in the upper half of its industry. The industry median 3-Year RORE % is 4.09. Williams-Sonoma's value of 0.83 is 79.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Retail - Cyclical company?
The median 3-Year RORE % among Retail - Cyclical companies is 4.09, based on 1,052 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Williams-Sonoma's current 3-Year RORE % of 0.83 is 79.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Williams-Sonoma and its competitors. For the Retail - Cyclical industry, the median 3-Year RORE % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Williams-Sonoma's current 3-Year RORE % is 0.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Williams-Sonoma stock overvalued right now?
Based on GuruFocus' analysis, Williams-Sonoma (STU:WM1) is currently considered Significantly Overvalued. The stock's GF Value™ is €148.10, compared to a current price of €194.20 — trading 31.1% above its estimated fair value. The current 3-Year RORE % is 0.83 and 79.7% below the Retail - Cyclical industry median of 4.09. Williams-Sonoma's overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Williams-Sonoma (STU:WM1), the current 3-Year RORE % is 0.83 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Williams-Sonoma (STU:WM1) Overvalued in 2026?
Based on GuruFocus' analysis, Williams-Sonoma stock appears to be overvalued.
The current stock price of €194.20 is trading 31.1% above its estimated GF Value™ of €148.10.
GuruFocus considers Williams-Sonoma to be Significantly Overvalued.
Key valuation signals for STU:WM1:
3-Year RORE %: 0.83
GF Value™: €148.10 vs. price of €194.20 (31.1% above fair value)
Industry Position: 79.7% below the Retail - Cyclical median (#523 of 1052)
No single metric tells the full story. See the STU:WM1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. Namesake Williams-Sonoma (153 stores) offers high-end cooking essentials, while Pottery Barn (180) provides casual home accessories. West Elm (116) is an emerging concept for young professionals, and Rejuvenation (13) offers lighting and house parts. Brand extensions include Pottery Barn Kids and Pottery Barn Teen (43) as well as Mark & Graham and GreenRow. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
89GF Score
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