WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - NYSE:WMB - US9694571004 - Common Stock
57.62 USD
+0.64 (+1.12%)
57.62 USD
0 (0%)
Taking everything into account, WMB scores 4 out of 10 in our fundamental rating. WMB was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. WMB scores excellent on profitability, but there are concerns on its financial health. WMB is quite expensive at the moment. 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.
WMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.32%, WMB perfoms like the industry average, outperforming 59.33% of the companies in the same industry.
The Return On Equity of WMB (19.50%) is better than 84.69% of its industry peers.
WMB has a Return On Invested Capital of 5.68%. This is comparable to the rest of the industry: WMB outperforms 50.72% of its industry peers.
WMB had an Average Return On Invested Capital over the past 3 years of 5.82%. This is significantly below the industry average of 21.71%.
| 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 Profit Margin of 21.61%. This is in the better half of the industry: WMB outperforms 76.08% of its industry peers.
In the last couple of years the Profit Margin of WMB has grown nicely.
WMB has a better Operating Margin (32.59%) than 78.95% 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 79.80%, WMB belongs to the top of the industry, outperforming 89.95% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WMB is destroying value.
WMB has about the same amout of shares outstanding than it did 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 1.00. 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 (1.00) is comparable to the rest of the industry.
WMB has a debt to FCF ratio of 15.94. This is a negative value and a sign of low solvency as WMB would need 15.94 years to pay back of all of its debts.
WMB has a Debt to FCF ratio (15.94) which is in line with its industry peers.
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 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 15.94 | ||
| Altman-Z | 1 |
ROIC/WACC0.72
WACC7.88%
2.3 Liquidity
WMB has a Current Ratio of 0.54. This is a bad value and indicates that WMB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of WMB (0.54) is worse than 87.08% of its industry peers.
A Quick Ratio of 0.48 indicates that WMB may have some problems paying its short term obligations.
The Quick ratio of WMB (0.48) is worse than 86.12% 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.
The Revenue has been growing slightly by 7.42% in the past year.
The Revenue has been growing slightly by 5.07% on average over the past years.
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
The Earnings Per Share is expected to grow by 13.52% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.01% on average over the next years. This is quite good.
EPS Next Y16.57%
EPS Next 2Y15.45%
EPS Next 3Y15.02%
EPS Next 5Y13.52%
Revenue Next Year12.61%
Revenue Next 2Y9.95%
Revenue Next 3Y10.19%
Revenue Next 5Y10.01%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
WMB is valuated quite expensively with a Price/Earnings ratio of 31.66.
Compared to the rest of the industry, the Price/Earnings ratio of WMB indicates a slightly more expensive valuation: WMB is more expensive than 62.20% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WMB to the average of the S&P500 Index (26.76), we can say WMB is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.75, the valuation of WMB can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as WMB.
When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (22.63), we can say WMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.66 | ||
| Fwd PE | 23.75 |
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 66.51% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WMB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.27 | ||
| EV/EBITDA | 16.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WMB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WMB's earnings are expected to grow with 15.02% in the coming years.
PEG (NY)1.91
PEG (5Y)2.4
EPS Next 2Y15.45%
EPS Next 3Y15.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.39%, WMB has a reasonable but not impressive dividend return.
WMB's Dividend Yield is comparable with the industry average which is at 6.15.
WMB's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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.
As WMB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.57%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
WMB pays out 98.06% of its income as dividend. This is not a sustainable payout ratio.
WMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.06%
EPS Next 2Y15.45%
EPS Next 3Y15.02%
57.62
+0.64 (+1.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.64%
Inst Owner Change-0.28%
Ins Owners0.4%
Ins Owner Change0.31%
Market Cap70.36B
Revenue(TTM)11.22B
Net Income(TTM)2.43B
Analysts76.43
Price Target64.68 (12.25%)
Short Float %1.05%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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)0.23%
PT rev (3m)1.03%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-1.3%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-2.07%
Revenue NQ rev (1m)1.53%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.66 | ||
| Fwd PE | 23.75 | ||
| P/S | 6.27 | ||
| P/FCF | 39.27 | ||
| P/OCF | 13.17 | ||
| P/B | 5.66 | ||
| P/tB | 13.18 | ||
| EV/EBITDA | 16.27 |
EPS(TTM)1.82
EY3.16%
EPS(NY)2.43
Fwd EY4.21%
FCF(TTM)1.47
FCFY2.55%
OCF(TTM)4.38
OCFY7.59%
SpS9.19
BVpS10.19
TBVpS4.37
PEG (NY)1.91
PEG (5Y)2.4
Graham Number20.42
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%
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-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 |
F-Score6
WACC7.88%
ROIC/WACC0.72
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 Y16.57%
EPS Next 2Y15.45%
EPS Next 3Y15.02%
EPS Next 5Y13.52%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%12.82%
Revenue Next Year12.61%
Revenue Next 2Y9.95%
Revenue Next 3Y10.19%
Revenue Next 5Y10.01%
EBIT growth 1Y-0.25%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.74%
EBIT Next 3Y28.55%
EBIT Next 5Y19.88%
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%
WILLIAMS COS INC / WMB FAQ
What is the fundamental rating for WMB stock?
ChartMill assigns a fundamental rating of 4 / 10 to WMB.
What is the valuation status of WILLIAMS COS INC (WMB) stock?
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 valuation of WILLIAMS COS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WILLIAMS COS INC (WMB) is 31.66 and the Price/Book (PB) ratio is 5.66.
How sustainable is the dividend of WILLIAMS COS INC (WMB) stock?
The dividend rating of WILLIAMS COS INC (WMB) is 5 / 10 and the dividend payout ratio is 98.06%.