WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
60.11 USD
-0.05 (-0.08%)
60.11 USD
0 (0%)
Overall WMB gets a fundamental rating of 5 out of 10. We evaluated WMB against 209 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 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.
In the past 5 years WMB has always been profitable.
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 61.24% of its industry peers.
WMB's Return On Equity of 18.91% is amongst the best of the industry. WMB outperforms 87.08% of its industry peers.
The Return On Invested Capital of WMB (6.06%) 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 21.18%.
The last Return On Invested Capital (6.06%) for WMB is above the 3 year average (5.82%), which is a sign of increasing profitability.
| 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
WMB's Profit Margin of 20.59% is fine compared to the rest of the industry. WMB outperforms 77.03% of its industry peers.
In the last couple of years the Profit Margin of WMB has grown nicely.
WMB's Operating Margin of 34.18% is amongst the best of the industry. WMB outperforms 81.34% of its industry peers.
In the last couple of years the Operating Margin of WMB has grown nicely.
WMB has a Gross Margin of 80.62%. This is amongst the best in the industry. WMB outperforms 90.43% of its industry peers.
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 | 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.
The number of shares outstanding for WMB remains at a similar level compared to 1 year ago.
Compared to 5 years ago, WMB has more shares outstanding
Compared to 1 year ago, WMB has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that WMB is in the distress zone and has some risk of bankruptcy.
WMB has a Altman-Z score (1.08) which is comparable to the rest of the 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.
WMB has a Debt to FCF ratio (16.25) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.06 is on the high side and indicates that WMB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.06, WMB is doing worse than 79.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.75
WACC8.08%
2.3 Liquidity
WMB has a Current Ratio of 0.42. This is a bad value and indicates that WMB is not financially healthy enough and could expect problems in meeting its short term obligations.
WMB's Current ratio of 0.42 is on the low side compared to the rest of the industry. WMB is outperformed by 86.60% of its industry peers.
A Quick Ratio of 0.36 indicates that WMB may have some problems paying its short term obligations.
WMB has a Quick ratio of 0.36. This is amonst the worse of the industry: WMB underperforms 86.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.63% over the past year.
WMB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.18% yearly.
Looking at the last year, WMB shows a quite strong growth in Revenue. The Revenue has grown by 9.02% in the last year.
The Revenue has been growing slightly by 5.07% on average over the past years.
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
Based on estimates for the next years, WMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.60% 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 8.33% on average per year.
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
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.
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
The Price/Earnings ratio is 30.83, which means the current valuation is very expensive for WMB.
Based on the Price/Earnings ratio, WMB is valued a bit more expensive than 62.20% of the companies in the same industry.
WMB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.45, the valuation of WMB can be described as 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 (23.13), we can say WMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.83 | ||
| Fwd PE | 25.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than 67.94% 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 | 42.63 | ||
| EV/EBITDA | 16.19 |
4.3 Compensation for Growth
WMB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent 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 15.11% in the coming years.
PEG (NY)1.8
PEG (5Y)2.34
EPS Next 2Y13.92%
EPS Next 3Y15.11%
5. Dividend
5.1 Amount
WMB has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 3.93, WMB has a dividend in line with its industry peers.
WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| 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 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)4.57%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
101.86% 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.
DP101.86%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
60.11
-0.05 (-0.08%)
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 Cap73.41B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts77.24
Price Target69.79 (16.1%)
Short Float %1.3%
Short Ratio2.16
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-DateN/A
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 | 30.83 | ||
| Fwd PE | 25.45 | ||
| P/S | 6.39 | ||
| P/FCF | 42.63 | ||
| P/OCF | 13.25 | ||
| P/B | 5.86 | ||
| P/tB | 13.31 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)1.95
EY3.24%
EPS(NY)2.36
Fwd EY3.93%
FCF(TTM)1.41
FCFY2.35%
OCF(TTM)4.54
OCFY7.55%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.8
PEG (5Y)2.34
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 | 1.08 |
F-Score5
WACC8.08%
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.
Can you provide the valuation status for WILLIAMS COS INC?
ChartMill assigns a valuation rating of 3 / 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 expected EPS growth for WILLIAMS COS INC (WMB) stock?
The Earnings per Share (EPS) of WILLIAMS COS INC (WMB) is expected to grow by 17.13% in the next year.
Is the dividend of WILLIAMS COS INC sustainable?
The dividend rating of WILLIAMS COS INC (WMB) is 5 / 10 and the dividend payout ratio is 101.86%.