WILLIAMS COS INC (WMB)
US9694571004 - Common Stock
Overall WMB gets a fundamental rating of 4 out of 10. We evaluated WMB against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While WMB belongs to the best of the industry regarding profitability, there are concerns on its financial health. WMB has a expensive valuation and it also scores bad on growth.
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
The Return On Assets of WMB (5.46%) is comparable to the rest of the industry.
WMB has a better Return On Equity (23.14%) than 75.24% of its industry peers.
With a Return On Invested Capital value of 6.44%, WMB perfoms like the industry average, outperforming 42.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WMB is significantly below the industry average of 30.77%.
The 3 year average ROIC (5.86%) for WMB is below the current ROIC(6.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 23.14% | ||
| ROIC | 6.44% |
ROA(3y)4.48%
ROA(5y)3.15%
ROE(3y)18.89%
ROE(5y)12.96%
ROIC(3y)5.86%
ROIC(5y)5.41%
1.3 Margins
With a decent Profit Margin value of 27.19%, WMB is doing good in the industry, outperforming 73.33% 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 36.19%. This is in the better half of the industry: WMB outperforms 68.57% of its industry peers.
In the last couple of years the Operating Margin of WMB has grown nicely.
WMB's Gross Margin of 81.51% is amongst the best of the industry. WMB outperforms 90.48% of its industry peers.
WMB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.19% | ||
| PM (TTM) | 27.19% | ||
| GM | 81.51% |
OM growth 3Y4.85%
OM growth 5Y11.06%
PM growth 3Y121.08%
PM growth 5YN/A
GM growth 3Y0.93%
GM growth 5Y3.88%
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.
Compared to 1 year ago, WMB has about the same amount of shares outstanding.
Compared to 5 years ago, WMB has more shares outstanding
Compared to 1 year ago, WMB has a worse debt to assets ratio.
2.2 Solvency
WMB has an Altman-Z score of 0.82. This is a bad value and indicates that WMB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.82, WMB is doing worse than 62.86% of the companies in the same industry.
The Debt to FCF ratio of WMB is 8.68, which is on the high side as it means it would take WMB, 8.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.68, WMB is in line with its industry, outperforming 46.19% of the companies in the same industry.
A Debt/Equity ratio of 1.94 is on the high side and indicates that WMB has dependencies on debt financing.
The Debt to Equity ratio of WMB (1.94) is worse than 84.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 8.68 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.89
WACC7.24%
2.3 Liquidity
WMB has a Current Ratio of 0.52. 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 Current ratio, with a value of 0.52, WMB is doing worse than 87.14% of the companies in the same industry.
WMB has a Quick Ratio of 0.52. 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 Quick ratio of WMB (0.48) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| 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 -6.10%.
Measured over the past years, WMB shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.12% on average per year.
The Revenue has decreased by -8.03% in the past year.
The Revenue has been growing slightly by 4.66% on average over the past years.
EPS 1Y (TTM)-6.1%
EPS 3Y36.67%
EPS 5Y26.12%
EPS Q2Q%-22.37%
Revenue 1Y (TTM)-8.03%
Revenue growth 3Y12.21%
Revenue growth 5Y4.66%
Sales Q2Q%-10.06%
3.2 Future
The Earnings Per Share is expected to grow by 4.95% on average over the next years.
Based on estimates for the next years, WMB will show a small growth in Revenue. The Revenue will grow by 4.24% on average per year.
EPS Next Y-15.58%
EPS Next 2Y-2.35%
EPS Next 3Y2.15%
EPS Next 5Y4.95%
Revenue Next Year-4.68%
Revenue Next 2Y2.51%
Revenue Next 3Y5.12%
Revenue Next 5Y4.24%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.26, which indicates a rather expensive current valuation of WMB.
WMB's Price/Earnings ratio is a bit more expensive when compared to the industry. WMB is more expensive than 69.05% of the companies in the same industry.
WMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.41.
The Price/Forward Earnings ratio is 20.55, which indicates a rather expensive current valuation of WMB.
Based on the Price/Forward Earnings ratio, WMB is valued a bit more expensive than the industry average as 70.48% 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 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.26 | ||
| Fwd PE | 20.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than 72.86% 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 | 16.72 | ||
| EV/EBITDA | 12.98 |
4.3 Compensation for Growth
The decent profitability rating of WMB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-2.35%
EPS Next 3Y2.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.39%, WMB is a good candidate for dividend investing.
WMB's Dividend Yield is a higher than the industry average which is at 5.93.
WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
5.2 History
The dividend of WMB has a limited annual growth rate of 5.62%.
WMB has paid a dividend for at least 10 years, which is 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)5.62%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
76.78% of the earnings are spent on dividend by WMB. This is not a sustainable payout ratio.
The dividend of WMB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP76.78%
EPS Next 2Y-2.35%
EPS Next 3Y2.15%
WILLIAMS COS INC
NYSE:WMB (7/26/2024, 7:07:14 PM)
After market: 42.0505 -0.47 (-1.1%)42.52
+0.7 (+1.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap51.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.26 | ||
| Fwd PE | 20.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 23.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 36.19% | ||
| PM (TTM) | 27.19% | ||
| GM | 81.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-6.1%
EPS 3Y36.67%
EPS 5Y
EPS Q2Q%
EPS Next Y-15.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.03%
Revenue growth 3Y12.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y