WILLIAMS COS INC (WMB.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:WMB • US9694571004
56.26 EUR
+2.02 (+3.72%)
Last: Jan 30, 2026, 07:00 PM
Overall WMB gets a fundamental rating of 4 out of 10. We evaluated WMB against 71 industry peers in the Oil, Gas & Consumable Fuels industry. WMB has an excellent profitability rating, 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
- WMB had positive earnings in the past year.
- WMB had a positive operating cash flow in the past year.
- WMB had positive earnings in each of the past 5 years.
- Each year in the past 5 years WMB had a positive operating cash flow.
1.2 Ratios
- WMB has a Return On Assets of 4.25%. This is in the better half of the industry: WMB outperforms 63.38% of its industry peers.
- The Return On Equity of WMB (18.91%) is better than 91.55% of its industry peers.
- WMB's Return On Invested Capital of 6.06% is in line compared to the rest of the industry. WMB outperforms 56.34% of its industry peers.
- WMB had an Average Return On Invested Capital over the past 3 years of 5.82%. This is below the industry average of 8.91%.
- The last Return On Invested Capital (6.06%) for WMB is above the 3 year average (5.82%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 20.59%, WMB belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
- 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 88.73% of its industry peers.
- WMB's Operating Margin has improved in the last couple of years.
- WMB has a Gross Margin of 80.62%. This is amongst the best in the industry. WMB outperforms 85.92% of its industry peers.
- 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
- WMB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for WMB remains at a similar level compared to 1 year ago.
- 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
- WMB has an Altman-Z score of 1.16. This is a bad value and indicates that WMB is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of WMB (1.16) is worse than 73.24% 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.
- Looking at the Debt to FCF ratio, with a value of 16.25, WMB is doing worse than 67.61% of the companies in the same industry.
- A Debt/Equity ratio of 2.06 is on the high side and indicates that WMB has dependencies on debt financing.
- The Debt to Equity ratio of WMB (2.06) is worse than 91.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.74
WACC8.19%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that WMB may have some problems paying its short term obligations.
- WMB's Current ratio of 0.42 is on the low side compared to the rest of the industry. WMB is outperformed by 95.77% of its industry peers.
- WMB has a Quick Ratio of 0.42. This is a bad value and indicates that WMB is not financially healthy enough and could expect problems in meeting its short term obligations.
- WMB's Quick ratio of 0.36 is on the low side compared to the rest of the industry. WMB is outperformed by 95.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- WMB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.63%.
- The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
- The Revenue has grown by 9.02% in the past year. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 14.60% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.33% on average over the next years. This is quite good.
EPS Next Y17.19%
EPS Next 2Y12.97%
EPS Next 3Y13.79%
EPS Next 5Y14.6%
Revenue Next Year12.79%
Revenue Next 2Y8.97%
Revenue Next 3Y9.64%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- WMB is valuated quite expensively with a Price/Earnings ratio of 34.52.
- Compared to the rest of the industry, the Price/Earnings ratio of WMB indicates a slightly more expensive valuation: WMB is more expensive than 71.83% of the companies listed in the same industry.
- WMB is valuated rather expensively when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 28.99, the valuation of WMB can be described as expensive.
- Based on the Price/Forward Earnings ratio, WMB is valued a bit more expensive than the industry average as 70.42% of the companies are valued more cheaply.
- WMB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 28.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WMB is valued expensively inside the industry as 81.69% of the companies are valued cheaper.
- Based on the Price/Free Cash Flow ratio, WMB is valued a bit more expensive than the industry average as 70.42% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.75 | ||
| EV/EBITDA | 17.13 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of WMB may justify a higher PE ratio.
- A more expensive valuation may be justified as WMB's earnings are expected to grow with 13.79% in the coming years.
PEG (NY)2.01
PEG (5Y)2.62
EPS Next 2Y12.97%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
- WMB has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.13, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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 2Y12.97%
EPS Next 3Y13.79%
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.
Can you provide the valuation status for WILLIAMS COS INC?
ChartMill assigns a valuation rating of 1 / 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 expected EPS growth for WILLIAMS COS INC (WMB.DE) stock?
The Earnings per Share (EPS) of WILLIAMS COS INC (WMB.DE) is expected to grow by 17.19% in the next year.
Is the dividend of WILLIAMS COS INC sustainable?
The dividend rating of WILLIAMS COS INC (WMB.DE) is 4 / 10 and the dividend payout ratio is 101.86%.