WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - NYSE:WMB - US9694571004 - Common Stock
61.005 USD
+0.63 (+1.04%)
Taking everything into account, WMB scores 4 out of 10 in our fundamental rating. WMB was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While WMB has a great profitability rating, there are quite some 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.
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's Return On Assets of 4.32% is in line compared to the rest of the industry. WMB outperforms 58.57% of its industry peers.
With an excellent Return On Equity value of 19.50%, WMB belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
WMB has a Return On Invested Capital (5.68%) 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 21.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 19.5% | ||
| ROIC | 5.68% |
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 has a better Profit Margin (21.61%) than 75.71% of its industry peers.
WMB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 32.59%, WMB is in the better half of the industry, outperforming 79.52% of the companies in the same industry.
WMB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 79.80%, WMB belongs to the top of the industry, outperforming 90.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.59% | ||
| PM (TTM) | 21.61% | ||
| GM | 79.8% |
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.
The number of shares outstanding for WMB has been increased compared to 5 years ago.
WMB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that WMB is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, WMB is in line with its industry, outperforming 45.71% of the companies in the same industry.
The Debt to FCF ratio of WMB is 15.94, which is on the high side as it means it would take WMB, 15.94 years of fcf income to pay off all of its debts.
WMB has a Debt to FCF ratio of 15.94. This is comparable to the rest of the industry: WMB outperforms 45.71% 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.
WMB has a worse Debt to Equity ratio (2.06) than 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 15.94 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.7
WACC8.08%
2.3 Liquidity
A Current Ratio of 0.54 indicates that WMB may have some problems paying its short term obligations.
WMB's Current ratio of 0.54 is on the low side compared to the rest of the industry. WMB is outperformed by 86.19% of its industry peers.
A Quick Ratio of 0.48 indicates that WMB may have some problems paying its short term obligations.
WMB's Quick ratio of 0.48 is on the low side compared to the rest of the industry. WMB is outperformed by 85.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
WMB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.08%.
Measured over the past years, WMB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.18% on average per year.
Looking at the last year, WMB shows a small growth in Revenue. The Revenue has grown by 7.42% in the last year.
WMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.07% yearly.
EPS 1Y (TTM)-8.08%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%4.65%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%12.82%
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 13.64% 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 10.70% on average per year.
EPS Next Y16.82%
EPS Next 2Y15.43%
EPS Next 3Y14.54%
EPS Next 5Y13.64%
Revenue Next Year12.31%
Revenue Next 2Y9.7%
Revenue Next 3Y9.35%
Revenue Next 5Y10.7%
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
The Price/Earnings ratio is 33.52, 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 61.43% of the companies in the same industry.
WMB is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
WMB is valuated quite expensively with a Price/Forward Earnings ratio of 25.16.
Based on the Price/Forward Earnings ratio, WMB is valued a bit more expensive than 61.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (22.88), we can say WMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.52 | ||
| Fwd PE | 25.16 |
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 67.14% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.57 | ||
| EV/EBITDA | 16.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WMB does not grow enough to justify the current Price/Earnings ratio.
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 14.54% in the coming years.
PEG (NY)1.99
PEG (5Y)2.54
EPS Next 2Y15.43%
EPS Next 3Y14.54%
5. Dividend
5.1 Amount
WMB has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 6.17, WMB has a dividend in line with its industry peers.
WMB's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of WMB has a limited annual growth rate of 4.57%.
WMB has been paying a dividend for at least 10 years, so it has 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)4.57%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
98.06% of the earnings are spent on dividend by WMB. This is not a sustainable payout ratio.
The dividend of WMB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.06%
EPS Next 2Y15.43%
EPS Next 3Y14.54%
NYSE:WMB (9/19/2025, 9:38:07 AM)
61.005
+0.63 (+1.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.85%
Inst Owner Change-0.72%
Ins Owners0.4%
Ins Owner Change0.34%
Market Cap74.50B
Analysts76.3
Price Target64.54 (5.79%)
Short Float %1.02%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP98.06%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.07%
Min EPS beat(2)-6.28%
Max EPS beat(2)0.14%
EPS beat(4)1
Avg EPS beat(4)-6.19%
Min EPS beat(4)-13.58%
Max EPS beat(4)0.14%
EPS beat(8)5
Avg EPS beat(8)3.2%
EPS beat(12)9
Avg EPS beat(12)10.64%
EPS beat(16)12
Avg EPS beat(16)10.2%
Revenue beat(2)2
Avg Revenue beat(2)1.69%
Min Revenue beat(2)0.8%
Max Revenue beat(2)2.59%
Revenue beat(4)4
Avg Revenue beat(4)2.18%
Min Revenue beat(4)0.8%
Max Revenue beat(4)4.08%
Revenue beat(8)6
Avg Revenue beat(8)0.23%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)3.41%
PT rev (1m)0.8%
PT rev (3m)3.45%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)1.66%
Revenue NQ rev (3m)-5.57%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.52 | ||
| Fwd PE | 25.16 | ||
| P/S | 6.64 | ||
| P/FCF | 41.57 | ||
| P/OCF | 13.94 | ||
| P/B | 5.99 | ||
| P/tB | 13.96 | ||
| EV/EBITDA | 16.96 |
EPS(TTM)1.82
EY2.98%
EPS(NY)2.42
Fwd EY3.97%
FCF(TTM)1.47
FCFY2.41%
OCF(TTM)4.38
OCFY7.17%
SpS9.19
BVpS10.19
TBVpS4.37
PEG (NY)1.99
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 19.5% | ||
| ROCE | 7.3% | ||
| ROIC | 5.68% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 6.76% | ||
| OM | 32.59% | ||
| PM (TTM) | 21.61% | ||
| GM | 79.8% | ||
| FCFM | 15.96% |
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%
ROICexcg growth 3Y0.06%
ROICexcg 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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 15.94 | ||
| Debt/EBITDA | 4.28 | ||
| Cap/Depr | 153.04% | ||
| Cap/Sales | 31.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.38% | ||
| Profit Quality | 73.87% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.06 |
F-Score6
WACC8.08%
ROIC/WACC0.7
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)-8.08%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%4.65%
EPS Next Y16.82%
EPS Next 2Y15.43%
EPS Next 3Y14.54%
EPS Next 5Y13.64%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%12.82%
Revenue Next Year12.31%
Revenue Next 2Y9.7%
Revenue Next 3Y9.35%
Revenue Next 5Y10.7%
EBIT growth 1Y-0.25%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.49%
EBIT Next 3Y28.45%
EBIT Next 5Y20.09%
FCF growth 1Y-35.03%
FCF growth 3Y-5.24%
FCF growth 5Y8.26%
OCF growth 1Y-4.57%
OCF growth 3Y8.03%
OCF growth 5Y6.14%