WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
59.52 USD
+0.06 (+0.1%)
59.52 USD
0 (0%)
Taking everything into account, WMB scores 5 out of 10 in our fundamental rating. WMB was compared to 209 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 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.
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 60.95% of its industry peers.
WMB has a Return On Equity of 18.91%. This is amongst the best in the industry. WMB outperforms 87.14% of its industry peers.
WMB has a Return On Invested Capital of 6.06%. This is comparable to the rest of the industry: WMB outperforms 53.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WMB is significantly below the industry average of 21.18%.
The 3 year average ROIC (5.82%) for WMB is below the current ROIC(6.06%), indicating increased profibility in the last year.
| 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
The Profit Margin of WMB (20.59%) is better than 76.67% of its industry peers.
In the last couple of years the Profit Margin of WMB has grown nicely.
WMB has a Operating Margin of 34.18%. This is amongst the best in the industry. WMB outperforms 80.95% of its industry peers.
In the last couple of years the Operating Margin of WMB has grown nicely.
Looking at the Gross Margin, with a value of 80.62%, WMB belongs to the top of the industry, outperforming 90.48% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WMB is destroying value.
WMB has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for WMB has been increased compared to 5 years ago.
The debt/assets ratio for WMB has been reduced compared to a year ago.
2.2 Solvency
WMB has an Altman-Z score of 1.07. This is a bad value and indicates that WMB is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.07, WMB perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
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 in line with its industry, outperforming 47.14% of the companies in the same industry.
WMB has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
WMB has a worse Debt to Equity ratio (2.06) than 80.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.75
WACC8.04%
2.3 Liquidity
A Current Ratio of 0.42 indicates that WMB may have some problems paying its short term obligations.
With a Current ratio value of 0.42, WMB is not doing good in the industry: 87.14% of the companies in the same industry are doing better.
A Quick Ratio of 0.36 indicates that WMB may have some problems paying 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 87.14% 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%.
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 quite strong growth in Revenue. The Revenue has grown by 9.02% in the last year.
Measured over the past years, WMB shows a small growth in Revenue. The Revenue has been growing by 5.07% on average per year.
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 Y17.13%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
EPS Next 5Y14.6%
Revenue Next Year12.86%
Revenue Next 2Y9.29%
Revenue Next 3Y9.91%
Revenue Next 5Y8.33%
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.
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 30.52.
Based on the Price/Earnings ratio, WMB is valued a bit more expensive than the industry average as 62.86% of the companies are valued more cheaply.
WMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.92.
Based on the Price/Forward Earnings ratio of 25.20, the valuation of WMB can be described as expensive.
WMB's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (23.46), we can say WMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.52 | ||
| Fwd PE | 25.2 |
4.2 Price Multiples
68.10% of the companies in the same industry are cheaper than WMB, based on the Enterprise Value to EBITDA ratio.
WMB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.21 | ||
| EV/EBITDA | 16.07 |
4.3 Compensation for Growth
WMB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WMB has an outstanding profitability rating, which may justify a higher PE ratio.
WMB's earnings are expected to grow with 15.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.78
PEG (5Y)2.32
EPS Next 2Y13.92%
EPS Next 3Y15.11%
5. Dividend
5.1 Amount
WMB has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.93, WMB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, WMB pays a better dividend.
| 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.
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 101.86% 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.
DP101.86%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
59.52
+0.06 (+0.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner Change-1.04%
Ins Owners0.4%
Ins Owner Change0.15%
Market Cap72.69B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts77.24
Price Target69.79 (17.25%)
Short Float %1.07%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP101.86%
Div Incr Years7
Div Non Decr Years7
Ex-Date
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)1.83%
PT rev (3m)8.14%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.52 | ||
| Fwd PE | 25.2 | ||
| P/S | 6.32 | ||
| P/FCF | 42.21 | ||
| P/OCF | 13.12 | ||
| P/B | 5.81 | ||
| P/tB | 13.18 | ||
| EV/EBITDA | 16.07 |
EPS(TTM)1.95
EY3.28%
EPS(NY)2.36
Fwd EY3.97%
FCF(TTM)1.41
FCFY2.37%
OCF(TTM)4.54
OCFY7.62%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.78
PEG (5Y)2.32
Graham Number21.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 18.91% | ||
| ROCE | 7.8% | ||
| ROIC | 6.06% | ||
| ROICexc | 6.06% | ||
| ROICexgc | 7.04% | ||
| OM | 34.18% | ||
| PM (TTM) | 20.59% | ||
| GM | 80.62% | ||
| FCFM | 14.98% |
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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector 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 | 1.07 |
F-Score5
WACC8.04%
ROIC/WACC0.75
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)2.63%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%32.5%
EPS Next Y17.13%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
EPS Next 5Y14.6%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.86%
Revenue Next 2Y9.29%
Revenue Next 3Y9.91%
Revenue Next 5Y8.33%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.63%
EBIT Next 3Y29.78%
EBIT Next 5Y20.25%
FCF growth 1Y-34.99%
FCF growth 3Y-5.24%
FCF growth 5Y8.26%
OCF growth 1Y3.67%
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 5 / 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 8 / 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 30.52 and the Price/Book (PB) ratio is 5.81.
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 101.86%.