WILLIAMS COS INC (WMB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WMB - US9694571004 - Common Stock
49.69 EUR
-0.3 (-0.6%)
Taking everything into account, WMB scores 4 out of 10 in our fundamental rating. WMB was compared to 70 industry peers in the Oil, Gas & Consumable Fuels industry. WMB scores excellent on profitability, but there are concerns on its financial health. WMB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WMB was profitable.
WMB had a positive operating cash flow in the past year.
In the past 5 years WMB has always been profitable.
WMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WMB's Return On Assets of 4.25% is fine compared to the rest of the industry. WMB outperforms 63.77% of its industry peers.
WMB has a Return On Equity of 18.91%. This is amongst the best in the industry. WMB outperforms 89.86% of its industry peers.
WMB has a Return On Invested Capital (6.06%) which is comparable to the rest of the industry.
WMB had an Average Return On Invested Capital over the past 3 years of 5.82%. This is below the industry average of 9.15%.
The 3 year average ROIC (5.82%) for WMB is below the current ROIC(6.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 18.91% | ||
| ROIC | 6.06% |
ROA(3y)4.78%
ROA(5y)3.6%
ROE(3y)20.43%
ROE(5y)15.26%
ROIC(3y)5.82%
ROIC(5y)5.41%
1.3 Margins
WMB's Profit Margin of 20.59% is amongst the best of the industry. WMB outperforms 85.51% of its industry peers.
WMB's Profit Margin has improved in the last couple of years.
WMB has a Operating Margin of 34.18%. This is amongst the best in the industry. WMB outperforms 88.41% of its industry peers.
WMB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.62%, WMB belongs to the top of the industry, outperforming 85.51% of the companies in the same industry.
WMB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.18% | ||
| PM (TTM) | 20.59% | ||
| GM | 80.62% |
OM growth 3Y8.61%
OM growth 5Y1.79%
PM growth 3Y14.09%
PM growth 5Y15.42%
GM growth 3Y8.76%
GM growth 5Y1.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WMB is destroying value.
Compared to 1 year ago, WMB has about the same amount of shares outstanding.
Compared to 5 years ago, WMB has more shares outstanding
The debt/assets ratio for WMB has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that WMB is in the distress zone and has some risk of bankruptcy.
WMB has a Altman-Z score of 1.05. This is in the lower half of the industry: WMB underperforms 71.01% of its industry peers.
The Debt to FCF ratio of WMB is 16.25, which is on the high side as it means it would take WMB, 16.25 years of fcf income to pay off all of its debts.
WMB has a Debt to FCF ratio of 16.25. This is in the lower half of the industry: WMB underperforms 62.32% of its industry peers.
A Debt/Equity ratio of 2.06 is on the high side and indicates that WMB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.06, WMB is doing worse than 89.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.76
WACC8%
2.3 Liquidity
A Current Ratio of 0.42 indicates that WMB may have some problems paying its short term obligations.
With a Current ratio value of 0.42, WMB is not doing good in the industry: 92.75% of the companies in the same industry are doing better.
A Quick Ratio of 0.36 indicates that WMB may have some problems paying its short term obligations.
The Quick ratio of WMB (0.36) is worse than 94.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.63% over the past year.
The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
WMB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.02%.
The Revenue has been growing slightly by 5.07% on average over the past years.
EPS 1Y (TTM)2.63%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%32.5%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
3.2 Future
Based on estimates for the next years, WMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.60% on average per year.
Based on estimates for the next years, WMB will show a quite strong growth in Revenue. The Revenue will grow by 8.33% on average per year.
EPS Next Y16.95%
EPS Next 2Y14.15%
EPS Next 3Y15.68%
EPS Next 5Y14.6%
Revenue Next Year12.6%
Revenue Next 2Y8.31%
Revenue Next 3Y9.18%
Revenue Next 5Y8.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.93, which means the current valuation is very expensive for WMB.
Based on the Price/Earnings ratio, WMB is valued a bit more expensive than the industry average as 68.12% of the companies are valued more cheaply.
WMB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.54, the valuation of WMB can be described as rather expensive.
71.01% of the companies in the same industry are cheaper than WMB, based on the Price/Forward Earnings ratio.
WMB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.93 | ||
| Fwd PE | 24.54 |
4.2 Price Multiples
WMB's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WMB is more expensive than 76.81% of the companies in the same industry.
WMB's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. WMB is more expensive than 63.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.27 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
WMB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of WMB may justify a higher PE ratio.
WMB's earnings are expected to grow with 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.77
PEG (5Y)2.27
EPS Next 2Y14.15%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
WMB has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 5.63, WMB has a dividend in line with its industry peers.
WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of WMB has a limited annual growth rate of 4.57%.
Dividend Growth(5Y)4.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
101.86% of the earnings are spent on dividend by WMB. This is not a sustainable payout ratio.
WMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.86%
EPS Next 2Y14.15%
EPS Next 3Y15.68%
FRA:WMB (12/17/2025, 7:00:00 PM)
49.69
-0.3 (-0.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap60.68B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts77.24
Price Target59.3 (19.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.62
Dividend Growth(5Y)4.57%
DP101.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.89%
Min EPS beat(2)-6.28%
Max EPS beat(2)2.49%
EPS beat(4)2
Avg EPS beat(4)-4.3%
Min EPS beat(4)-13.58%
Max EPS beat(4)2.49%
EPS beat(8)5
Avg EPS beat(8)1.48%
EPS beat(12)9
Avg EPS beat(12)9.9%
EPS beat(16)12
Avg EPS beat(16)9.18%
Revenue beat(2)2
Avg Revenue beat(2)0.42%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.8%
Revenue beat(4)4
Avg Revenue beat(4)1.17%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.59%
Revenue beat(8)7
Avg Revenue beat(8)1.29%
Revenue beat(12)8
Avg Revenue beat(12)1.21%
Revenue beat(16)10
Avg Revenue beat(16)2.73%
PT rev (1m)65.32%
PT rev (3m)65.32%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)0.85%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)-3.66%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)-2.23%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.93 | ||
| Fwd PE | 24.54 | ||
| P/S | 6.18 | ||
| P/FCF | 41.27 | ||
| P/OCF | 12.83 | ||
| P/B | 5.68 | ||
| P/tB | 12.88 | ||
| EV/EBITDA | 15.82 |
EPS(TTM)1.66
EY3.34%
EPS(NY)2.02
Fwd EY4.08%
FCF(TTM)1.2
FCFY2.42%
OCF(TTM)3.87
OCFY7.79%
SpS8.04
BVpS8.75
TBVpS3.86
PEG (NY)1.77
PEG (5Y)2.27
Graham Number18.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 18.91% | ||
| ROCE | 7.8% | ||
| ROIC | 6.06% | ||
| ROICexc | 6.06% | ||
| ROICexgc | 7.04% | ||
| OM | 34.18% | ||
| PM (TTM) | 20.59% | ||
| GM | 80.62% | ||
| FCFM | 14.98% |
ROA(3y)4.78%
ROA(5y)3.6%
ROE(3y)20.43%
ROE(5y)15.26%
ROIC(3y)5.82%
ROIC(5y)5.41%
ROICexc(3y)5.94%
ROICexc(5y)5.53%
ROICexgc(3y)7.08%
ROICexgc(5y)6.64%
ROCE(3y)7.56%
ROCE(5y)7%
ROICexgc growth 3Y0.06%
ROICexgc growth 5Y2.22%
ROICexc growth 3Y1.49%
ROICexc growth 5Y3.34%
OM growth 3Y8.61%
OM growth 5Y1.79%
PM growth 3Y14.09%
PM growth 5Y15.42%
GM growth 3Y8.76%
GM growth 5Y1.31%
F-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Debt/EBITDA | 4.12 | ||
| Cap/Depr | 164.64% | ||
| Cap/Sales | 33.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.67% | ||
| Profit Quality | 72.75% | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.05 |
F-Score5
WACC8%
ROIC/WACC0.76
Cap/Depr(3y)119.42%
Cap/Depr(5y)100.01%
Cap/Sales(3y)23.28%
Cap/Sales(5y)19.62%
Profit Quality(3y)112.28%
Profit Quality(5y)316.57%
High Growth Momentum
Growth
EPS 1Y (TTM)2.63%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%32.5%
EPS Next Y16.95%
EPS Next 2Y14.15%
EPS Next 3Y15.68%
EPS Next 5Y14.6%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.6%
Revenue Next 2Y8.31%
Revenue Next 3Y9.18%
Revenue Next 5Y8.33%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.65%
EBIT Next 3Y29.8%
EBIT Next 5Y20.25%
FCF growth 1Y-34.99%
FCF growth 3Y-5.24%
FCF growth 5Y8.26%
OCF growth 1Y3.67%
OCF growth 3Y8.03%
OCF growth 5Y6.14%
WILLIAMS COS INC / WMB.DE FAQ
What is the fundamental rating for WMB stock?
ChartMill assigns a fundamental rating of 4 / 10 to WMB.DE.
What is the valuation status of WILLIAMS COS INC (WMB.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to WILLIAMS COS INC (WMB.DE). This can be considered as Overvalued.
How profitable is WILLIAMS COS INC (WMB.DE) stock?
WILLIAMS COS INC (WMB.DE) has a profitability rating of 8 / 10.
What is the valuation of WILLIAMS COS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WILLIAMS COS INC (WMB.DE) is 29.93 and the Price/Book (PB) ratio is 5.68.
How sustainable is the dividend of WILLIAMS COS INC (WMB.DE) stock?
The dividend rating of WILLIAMS COS INC (WMB.DE) is 4 / 10 and the dividend payout ratio is 101.86%.