Is WILLIAMS SONOMA INC (WSM) Halal?

NYSE Consumer Cyclical United States $20.9B
✓ HALAL
Confidence: 95/100
WILLIAMS SONOMA INC (WSM) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 6.1% against the AAOIFI threshold of 30%, WILLIAMS SONOMA INC comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Specialty Retail), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from January 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 6.1%
/ 30%
5.4%
/ 30%
0.5%
/ 30%
0.72%
/ 5%
✓ HALAL
DJIM 6.1%
/ 33%
5.4%
/ 33%
0.5%
/ 33%
0.72%
/ 5%
✓ HALAL
MSCI 25.4%
/ 33%
22.9%
/ 33%
2.2%
/ 33%
0.72%
/ 5%
✓ HALAL
S&P 6.1%
/ 33%
5.4%
/ 33%
0.5%
/ 33%
0.72%
/ 5%
✓ HALAL
FTSE 25.4%
/ 33%
22.9%
/ 33%
2.2%
/ 50%
0.72%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
19.9
Forward: 17.3
EPS
$8.83
Dividend Yield
173.0%
Payout: 29.9%
P/B Ratio
10.0
EV/EBITDA
12.9
EV: $21.3B
Revenue
$7.7B
Growth: -4.3%
Beta
1.6
High volatility
Current Ratio
1.4

Profitability

Gross Margin 46.2%
Operating Margin 20.3%
Net Margin 13.9%
Return on Equity (ROE) 51.5%
Return on Assets (ROA) 16.5%

Cash Flow & Balance Sheet

Operating Cash Flow$1.4B
Free Cash Flow$1.1B
Total Debt$1.3B
Debt-to-Equity70.0
Current Ratio1.4
Total Assets$5.3B

Price & Trading

Last Close$180.56
50-Day MA$200.68
200-Day MA$190.53
Avg Volume1.1M
Beta1.6
52-Week Range
$130.07
$222.00

About WILLIAMS SONOMA INC (WSM)

CEO
Ms. Laura J. Alber
Employees
19,800
Sector
Consumer Cyclical
Industry
Specialty Retail
Country
United States
Exchange
NYSE
Market Cap
$20.9B
Currency
USD

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home the United States and internationally. The company provides cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks. It offers home furnishings, home decor products and accessories, bedding, lighting, rugs, table essentials, kids accessories, made-to-order lighting, hardware, personalized products, custom gifts, and vintage-inspired heirloom products. It offers its products under the Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow brand names. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.

Purification Calculator

As a halal stock with 0.72% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is WILLIAMS SONOMA INC (WSM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), WILLIAMS SONOMA INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is WILLIAMS SONOMA INC's debt ratio?

WILLIAMS SONOMA INC's debt ratio is 6.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 25.4%.

Does WILLIAMS SONOMA INC require dividend purification?

Yes, WILLIAMS SONOMA INC has an impermissible income ratio of 0.72%, which means 0.72% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are WILLIAMS SONOMA INC's key financial metrics?

WILLIAMS SONOMA INC has a market capitalization of $20.9B, trailing P/E ratio of 19.9, and revenue of $7.7B. The company maintains a gross margin of 46.2% and a net margin of 13.9%. Return on equity stands at 51.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.