WILLIAMS COS INC (WMB) Fundamental Analysis & Valuation

NYSE:WMB • US9694571004

74.11 USD
-0.66 (-0.88%)
Last: Mar 6, 2026, 09:45 AM
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This WMB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WMB. WMB was compared to 207 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 valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

7

1. WMB Profitability Analysis

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.
  • WMB had a positive operating cash flow in each of the past 5 years.
WMB Yearly Net Income VS EBIT VS OCF VS FCFWMB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.25%, WMB is in line with its industry, outperforming 57.49% of the companies in the same industry.
  • With an excellent Return On Equity value of 18.91%, WMB belongs to the best of the industry, outperforming 86.47% of the companies in the same industry.
  • WMB has a Return On Invested Capital (6.02%) which is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for WMB is significantly below the industry average of 22.17%.
Industry RankSector Rank
ROA 4.25%
ROE 18.91%
ROIC 6.02%
ROA(3y)4.86%
ROA(5y)4.4%
ROE(3y)21.3%
ROE(5y)18.99%
ROIC(3y)6.15%
ROIC(5y)5.72%
WMB Yearly ROA, ROE, ROICWMB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

1.3 Margins

  • WMB's Profit Margin of 20.59% is fine compared to the rest of the industry. WMB outperforms 76.81% of its industry peers.
  • In the last couple of years the Profit Margin of WMB has grown nicely.
  • WMB's Operating Margin of 34.18% is amongst the best of the industry. WMB outperforms 81.64% of its industry peers.
  • WMB's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 80.62%, WMB belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WMB has remained more or less at the same level.
Industry RankSector Rank
OM 34.18%
PM (TTM) 20.59%
GM 80.62%
OM growth 3Y10.16%
OM growth 5Y2.06%
PM growth 3Y5.46%
PM growth 5Y52.03%
GM growth 3Y6.02%
GM growth 5Y0.62%
WMB Yearly Profit, Operating, Gross MarginsWMB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. WMB Health Analysis

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 more shares outstanding
  • WMB has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for WMB is higher compared to a year ago.
WMB Yearly Shares OutstandingWMB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
WMB Yearly Total Debt VS Total AssetsWMB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • WMB has an Altman-Z score of 1.33. 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 (1.33) is comparable to the rest of the industry.
  • WMB has a debt to FCF ratio of 16.25. This is a negative value and a sign of low solvency as WMB would need 16.25 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 16.25, WMB is in line with its industry, outperforming 48.31% 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.
  • Looking at the Debt to Equity ratio, with a value of 2.06, WMB is doing worse than 80.19% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.06
Debt/FCF 16.25
Altman-Z 1.33
ROIC/WACC0.79
WACC7.59%
WMB Yearly LT Debt VS Equity VS FCFWMB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 0.42 indicates that WMB may have some problems paying its short term obligations.
  • The Current ratio of WMB (0.42) is worse than 86.96% 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.
  • Looking at the Quick ratio, with a value of 0.36, WMB is doing worse than 87.92% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.36
WMB Yearly Current Assets VS Current LiabilitesWMB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. WMB Growth Analysis

3.1 Past

  • WMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.73%, which is quite impressive.
  • Measured over the past years, WMB shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.71% on average per year.
  • WMB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.78%.
  • WMB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.13% yearly.
EPS 1Y (TTM)24.73%
EPS 3Y8.44%
EPS 5Y21.71%
EPS Q2Q%80%
Revenue 1Y (TTM)13.78%
Revenue growth 3Y2.91%
Revenue growth 5Y9.13%
Sales Q2Q%16.59%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.91% on average over the next years. This is quite good.
  • WMB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.25% yearly.
EPS Next Y1.76%
EPS Next 2Y8.34%
EPS Next 3Y13.89%
EPS Next 5Y14.91%
Revenue Next Year6.29%
Revenue Next 2Y8.22%
Revenue Next 3Y7.64%
Revenue Next 5Y14.25%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • 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.
WMB Yearly Revenue VS EstimatesWMB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
WMB Yearly EPS VS EstimatesWMB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 2 4 6

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2

4. WMB Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 32.65, which means the current valuation is very expensive for WMB.
  • WMB's Price/Earnings ratio is a bit more expensive when compared to the industry. WMB is more expensive than 60.87% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.69. WMB is valued slightly more expensive when compared to this.
  • WMB is valuated quite expensively with a Price/Forward Earnings ratio of 32.08.
  • WMB's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 24.79. WMB is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 32.65
Fwd PE 32.08
WMB Price Earnings VS Forward Price EarningsWMB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 67.15% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WMB is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 52.56
EV/EBITDA 19.06
WMB Per share dataWMB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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 decent 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 13.89% in the coming years.
PEG (NY)18.59
PEG (5Y)1.5
EPS Next 2Y8.34%
EPS Next 3Y13.89%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. WMB Dividend Analysis

5.1 Amount

  • WMB has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
  • WMB's Dividend Yield is a higher than the industry average which is at 3.40.
  • WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.25%

5.2 History

  • The dividend of WMB has a limited annual growth rate of 4.56%.
  • WMB has paid a dividend for at least 10 years, which is a reliable track record.
  • WMB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.56%
Div Incr Years7
Div Non Decr Years7
WMB Yearly Dividends per shareWMB Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • WMB pays out 101.86% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of WMB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.86%
EPS Next 2Y8.34%
EPS Next 3Y13.89%
WMB Yearly Income VS Free CF VS DividendWMB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B
WMB Dividend Payout.WMB Dividend Payout, showing the Payout Ratio.WMB Dividend Payout.PayoutRetained Earnings

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WMB Fundamentals: All Metrics, Ratios and Statistics

WILLIAMS COS INC

NYSE:WMB (3/6/2026, 9:45:06 AM)

74.11

-0.66 (-0.88%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners88.33%
Inst Owner Change0.46%
Ins Owners0.4%
Ins Owner Change5.33%
Market Cap90.50B
Revenue(TTM)11.95B
Net Income(TTM)2.37B
Analysts78.62
Price Target77.12 (4.06%)
Short Float %1.26%
Short Ratio2.07
Dividend
Industry RankSector Rank
Dividend Yield 3.25%
Yearly Dividend2
Dividend Growth(5Y)4.56%
DP101.86%
Div Incr Years7
Div Non Decr Years7
Ex-Date03-13
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)0.49%
Revenue beat(12)8
Avg Revenue beat(12)0.67%
Revenue beat(16)10
Avg Revenue beat(16)2.33%
PT rev (1m)10.35%
PT rev (3m)12.52%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-4.36%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)-0.67%
Valuation
Industry RankSector Rank
PE 32.65
Fwd PE 32.08
P/S 7.87
P/FCF 52.56
P/OCF 16.34
P/B 7.23
P/tB 16.41
EV/EBITDA 19.06
EPS(TTM)2.27
EY3.06%
EPS(NY)2.31
Fwd EY3.12%
FCF(TTM)1.41
FCFY1.9%
OCF(TTM)4.54
OCFY6.12%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)18.59
PEG (5Y)1.5
Graham Number22.88
Profitability
Industry RankSector Rank
ROA 4.25%
ROE 18.91%
ROCE 7.8%
ROIC 6.02%
ROICexc 6.03%
ROICexgc 7%
OM 34.18%
PM (TTM) 20.59%
GM 80.62%
FCFM 14.98%
ROA(3y)4.86%
ROA(5y)4.4%
ROE(3y)21.3%
ROE(5y)18.99%
ROIC(3y)6.15%
ROIC(5y)5.72%
ROICexc(3y)6.26%
ROICexc(5y)5.83%
ROICexgc(3y)7.35%
ROICexgc(5y)6.92%
ROCE(3y)8.05%
ROCE(5y)7.45%
ROICexgc growth 3Y4.57%
ROICexgc growth 5Y4.86%
ROICexc growth 3Y6.26%
ROICexc growth 5Y6.13%
OM growth 3Y10.16%
OM growth 5Y2.06%
PM growth 3Y5.46%
PM growth 5Y52.03%
GM growth 3Y6.02%
GM growth 5Y0.62%
F-Score4
Asset Turnover0.21
Health
Industry RankSector 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 1.33
F-Score4
WACC7.59%
ROIC/WACC0.79
Cap/Depr(3y)152.54%
Cap/Depr(5y)127.79%
Cap/Sales(3y)30.29%
Cap/Sales(5y)24.68%
Profit Quality(3y)81.28%
Profit Quality(5y)109.89%
High Growth Momentum
Growth
EPS 1Y (TTM)24.73%
EPS 3Y8.44%
EPS 5Y21.71%
EPS Q2Q%80%
EPS Next Y1.76%
EPS Next 2Y8.34%
EPS Next 3Y13.89%
EPS Next 5Y14.91%
Revenue 1Y (TTM)13.78%
Revenue growth 3Y2.91%
Revenue growth 5Y9.13%
Sales Q2Q%16.59%
Revenue Next Year6.29%
Revenue Next 2Y8.22%
Revenue Next 3Y7.64%
Revenue Next 5Y14.25%
EBIT growth 1Y7.97%
EBIT growth 3Y13.36%
EBIT growth 5Y11.39%
EBIT Next Year85.52%
EBIT Next 3Y32.95%
EBIT Next 5Y23.15%
FCF growth 1Y-42.64%
FCF growth 3Y-29.87%
FCF growth 5Y-16.55%
OCF growth 1Y-0.52%
OCF growth 3Y6.45%
OCF growth 5Y11.03%

WILLIAMS COS INC / WMB FAQ

What is the fundamental rating for WMB stock?

ChartMill assigns a fundamental rating of 5 / 10 to WMB.


Can you provide the valuation status for WILLIAMS COS INC?

ChartMill assigns a valuation rating of 2 / 10 to WILLIAMS COS INC (WMB). This can be considered as Overvalued.


How profitable is WILLIAMS COS INC (WMB) stock?

WILLIAMS COS INC (WMB) has a profitability rating of 7 / 10.


What is the expected EPS growth for WILLIAMS COS INC (WMB) stock?

The Earnings per Share (EPS) of WILLIAMS COS INC (WMB) is expected to grow by 1.76% in the next year.


Is the dividend of WILLIAMS COS INC sustainable?

The dividend rating of WILLIAMS COS INC (WMB) is 6 / 10 and the dividend payout ratio is 101.86%.