WILLIAMS COS INC (WMB) Fundamental Analysis & Valuation

NYSE:WMB • US9694571004

Current stock price

76.31 USD
+2.99 (+4.08%)
At close:
75.65 USD
-0.66 (-0.86%)
After Hours:

This WMB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. WMB Profitability Analysis

1.1 Basic Checks

  • WMB had positive earnings in the past year.
  • In the past year WMB had a positive cash flow from operations.
  • In the past 5 years WMB has always been profitable.
  • Each year in the past 5 years WMB had a positive operating cash flow.
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

  • With a Return On Assets value of 4.46%, WMB perfoms like the industry average, outperforming 59.81% of the companies in the same industry.
  • With an excellent Return On Equity value of 20.42%, WMB belongs to the best of the industry, outperforming 85.17% of the companies in the same industry.
  • With a Return On Invested Capital value of 6.42%, WMB perfoms like the industry average, outperforming 59.33% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for WMB is significantly below the industry average of 22.53%.
  • The last Return On Invested Capital (6.42%) for WMB is above the 3 year average (6.15%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.46%
ROE 20.42%
ROIC 6.42%
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

  • Looking at the Profit Margin, with a value of 21.88%, WMB is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WMB has grown nicely.
  • Looking at the Operating Margin, with a value of 36.90%, WMB belongs to the top of the industry, outperforming 84.69% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WMB has grown nicely.
  • WMB has a better Gross Margin (81.60%) than 91.39% of its industry peers.
  • WMB's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 36.9%
PM (TTM) 21.88%
GM 81.6%
OM growth 3Y10.17%
OM growth 5Y2.07%
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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1

2. WMB Health Analysis

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.
  • WMB has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, WMB has more shares outstanding
  • WMB has a worse debt/assets ratio than last year.
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 1.28. 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 (1.28) is comparable to the rest of the industry.
  • The Debt to FCF ratio of WMB is 32.66, which is on the high side as it means it would take WMB, 32.66 years of fcf income to pay off all of its debts.
  • WMB has a Debt to FCF ratio (32.66) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 2.19 is on the high side and indicates that WMB has dependencies on debt financing.
  • WMB has a Debt to Equity ratio of 2.19. This is amonst the worse of the industry: WMB underperforms 81.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 32.66
Altman-Z 1.28
ROIC/WACC0.82
WACC7.86%
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 0.53 indicates that WMB may have some problems paying its short term obligations.
  • WMB has a Current ratio of 0.53. This is amonst the worse of the industry: WMB underperforms 85.65% 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 84.69% of its industry peers.
Industry RankSector Rank
Current Ratio 0.53
Quick Ratio 0.48
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

  • The Earnings Per Share has grown by an impressive 24.73% over the past year.
  • The Earnings Per Share has been growing by 21.71% on average over the past years. This is a very strong growth
  • Looking at the last year, WMB shows a quite strong growth in Revenue. The Revenue has grown by 13.78% in the last year.
  • The Revenue has been growing by 9.13% on average over the past years. This is quite good.
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

  • WMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.47% yearly.
  • The Revenue is expected to grow by 14.51% on average over the next years. This is quite good.
EPS Next Y2.64%
EPS Next 2Y7.71%
EPS Next 3Y12.17%
EPS Next 5Y16.47%
Revenue Next Year5.9%
Revenue Next 2Y7.86%
Revenue Next 3Y9.55%
Revenue Next 5Y14.51%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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

  • Based on the Price/Earnings ratio of 33.62, the valuation of WMB can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of WMB indicates a slightly more expensive valuation: WMB is more expensive than 62.68% of the companies listed in the same industry.
  • WMB is valuated rather expensively when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
  • WMB is valuated quite expensively with a Price/Forward Earnings ratio of 32.75.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WMB.
  • The average S&P500 Price/Forward Earnings ratio is at 21.75. WMB is valued rather expensively when compared to this.
Industry RankSector Rank
PE 33.62
Fwd PE 32.75
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

  • 65.07% 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 RankSector Rank
P/FCF 103.8
EV/EBITDA 17.5
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 12.17% in the coming years.
PEG (NY)12.72
PEG (5Y)1.55
EPS Next 2Y7.71%
EPS Next 3Y12.17%

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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 2.97%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 3.21, WMB pays a bit more dividend than its industry peers.
  • WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.97%

5.2 History

  • The dividend of WMB has a limited annual growth rate of 4.56%.
  • 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)4.56%
Div Incr Years8
Div Non Decr Years8
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 93.38% 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.
DP93.38%
EPS Next 2Y7.71%
EPS Next 3Y12.17%
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 (4/30/2026, 8:23:33 PM)

After market: 75.65 -0.66 (-0.86%)

76.31

+2.99 (+4.08%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Industry Strength78.88
Industry Growth83.23
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners88.75%
Inst Owner Change-0.3%
Ins Owners0.19%
Ins Owner Change0.93%
Market Cap93.32B
Revenue(TTM)11.95B
Net Income(TTM)2.62B
Analysts78.67
Price Target80.81 (5.9%)
Short Float %1.42%
Short Ratio2.77
Dividend
Industry RankSector Rank
Dividend Yield 2.97%
Yearly Dividend2
Dividend Growth(5Y)4.56%
DP93.38%
Div Incr Years8
Div Non Decr Years8
Ex-Date03-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.89%
Min EPS beat(2)2.49%
Max EPS beat(2)25.3%
EPS beat(4)3
Avg EPS beat(4)5.41%
Min EPS beat(4)-6.28%
Max EPS beat(4)25.3%
EPS beat(8)5
Avg EPS beat(8)4.26%
EPS beat(12)9
Avg EPS beat(12)11.02%
EPS beat(16)12
Avg EPS beat(16)9.93%
Revenue beat(2)2
Avg Revenue beat(2)2.46%
Min Revenue beat(2)0.03%
Max Revenue beat(2)4.89%
Revenue beat(4)4
Avg Revenue beat(4)2.08%
Min Revenue beat(4)0.03%
Max Revenue beat(4)4.89%
Revenue beat(8)8
Avg Revenue beat(8)2.03%
Revenue beat(12)9
Avg Revenue beat(12)1.26%
Revenue beat(16)10
Avg Revenue beat(16)0.42%
PT rev (1m)4.78%
PT rev (3m)15.62%
EPS NQ rev (1m)3.69%
EPS NQ rev (3m)7.09%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE 33.62
Fwd PE 32.75
P/S 7.81
P/FCF 103.8
P/OCF 15.82
P/B 7.29
P/tB 15.44
EV/EBITDA 17.5
EPS(TTM)2.27
EY2.97%
EPS(NY)2.33
Fwd EY3.05%
FCF(TTM)0.74
FCFY0.96%
OCF(TTM)4.82
OCFY6.32%
SpS9.77
BVpS10.47
TBVpS4.94
PEG (NY)12.72
PEG (5Y)1.55
Graham Number23.1281 (-69.69%)
Profitability
Industry RankSector Rank
ROA 4.46%
ROE 20.42%
ROCE 8.4%
ROIC 6.42%
ROICexc 6.43%
ROICexgc 7.37%
OM 36.9%
PM (TTM) 21.88%
GM 81.6%
FCFM 7.52%
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)6.27%
ROICexc(5y)5.83%
ROICexgc(3y)7.35%
ROICexgc(5y)6.92%
ROCE(3y)8.05%
ROCE(5y)7.46%
ROICexgc growth 3Y4.59%
ROICexgc growth 5Y4.87%
ROICexc growth 3Y6.28%
ROICexc growth 5Y6.14%
OM growth 3Y10.17%
OM growth 5Y2.07%
PM growth 3Y5.46%
PM growth 5Y52.03%
GM growth 3Y6.02%
GM growth 5Y0.62%
F-Score7
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 32.66
Debt/EBITDA 4.15
Cap/Depr 213%
Cap/Sales 41.83%
Interest Coverage 3.14
Cash Conversion 87.3%
Profit Quality 34.38%
Current Ratio 0.53
Quick Ratio 0.48
Altman-Z 1.28
F-Score7
WACC7.86%
ROIC/WACC0.82
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 Y2.64%
EPS Next 2Y7.71%
EPS Next 3Y12.17%
EPS Next 5Y16.47%
Revenue 1Y (TTM)13.78%
Revenue growth 3Y2.91%
Revenue growth 5Y9.13%
Sales Q2Q%16.59%
Revenue Next Year5.9%
Revenue Next 2Y7.86%
Revenue Next 3Y9.55%
Revenue Next 5Y14.51%
EBIT growth 1Y32.01%
EBIT growth 3Y13.38%
EBIT growth 5Y11.4%
EBIT Next Year86.37%
EBIT Next 3Y33.03%
EBIT Next 5Y23.95%
FCF growth 1Y-60.84%
FCF growth 3Y-29.87%
FCF growth 5Y-16.55%
OCF growth 1Y18.58%
OCF growth 3Y6.45%
OCF growth 5Y11.03%

WILLIAMS COS INC / WMB Fundamental Analysis 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.


Can you provide the profitability details for WILLIAMS COS INC?

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 33.62 and the Price/Book (PB) ratio is 7.29.


Can you provide the financial health for WMB stock?

The financial health rating of WILLIAMS COS INC (WMB) is 1 / 10.