WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
60.21 USD
-1.23 (-2%)
60.29 USD
+0.08 (+0.13%)
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. 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
WMB had positive earnings in the past year.
In the past year WMB had a positive cash flow from operations.
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
With a decent Return On Assets value of 4.25%, WMB is doing good in the industry, outperforming 60.29% of the companies in the same industry.
WMB has a better Return On Equity (18.91%) than 85.65% of its industry peers.
WMB has a Return On Invested Capital (6.06%) which is comparable to the rest of the industry.
WMB had an Average Return On Invested Capital over the past 3 years of 5.82%. This is significantly below the industry average of 21.47%.
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
WMB has a better Profit Margin (20.59%) than 76.08% of its industry peers.
WMB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 34.18%, WMB belongs to the top of the industry, outperforming 80.86% of the companies in the same industry.
WMB's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 80.62%, WMB belongs to the best of the industry, outperforming 90.91% 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.
The number of shares outstanding for WMB remains at a similar level compared to 1 year ago.
The number of shares outstanding for WMB has been increased compared to 5 years ago.
Compared to 1 year ago, WMB has an improved debt to assets ratio.
2.2 Solvency
WMB has an Altman-Z score of 1.08. This is a bad value and indicates that WMB is not financially healthy and even 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's Debt to FCF ratio of 16.25 is in line compared to the rest of the industry. WMB outperforms 47.37% of its industry peers.
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 80.86% 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 89.00% of its industry peers.
WMB has a Quick 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 has a Quick ratio of 0.36. This is amonst the worse of the industry: WMB underperforms 89.00% 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.
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.
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.
WMB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.33% yearly.
EPS Next Y16.39%
EPS Next 2Y15.2%
EPS Next 3Y15.28%
EPS Next 5Y14.6%
Revenue Next Year12.67%
Revenue Next 2Y9.92%
Revenue Next 3Y10.34%
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.
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
With a Price/Earnings ratio of 30.88, WMB can be considered very expensive at the moment.
62.68% of the companies in the same industry are cheaper than WMB, based on the Price/Earnings ratio.
WMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 24.93, the valuation of WMB can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMB indicates a slightly more expensive valuation: WMB is more expensive than 60.77% of the companies listed in the same industry.
WMB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 24.93 |
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.
WMB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.7 | ||
| EV/EBITDA | 16.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WMB does not grow enough to justify the current Price/Earnings ratio.
WMB has an outstanding profitability rating, which may justify a higher PE ratio.
WMB's earnings are expected to grow with 15.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)2.34
EPS Next 2Y15.2%
EPS Next 3Y15.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, WMB has a reasonable but not impressive dividend return.
WMB's Dividend Yield is comparable with the industry average which is at 5.96.
Compared to an average S&P500 Dividend Yield of 2.32, WMB pays a bit more dividend than the S&P500 average.
| 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.
WMB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y15.2%
EPS Next 3Y15.28%
60.21
-1.23 (-2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.64%
Inst Owner Change-1.1%
Ins Owners0.4%
Ins Owner Change0.15%
Market Cap73.53B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts77.24
Price Target68.54 (13.83%)
Short Float %1.27%
Short Ratio2.11
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)5.96%
PT rev (3m)6.2%
EPS NQ rev (1m)1.38%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.88 | ||
| Fwd PE | 24.93 | ||
| P/S | 6.4 | ||
| P/FCF | 42.7 | ||
| P/OCF | 13.27 | ||
| P/B | 5.87 | ||
| P/tB | 13.33 | ||
| EV/EBITDA | 16.21 |
EPS(TTM)1.95
EY3.24%
EPS(NY)2.42
Fwd EY4.01%
FCF(TTM)1.41
FCFY2.34%
OCF(TTM)4.54
OCFY7.53%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.88
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 Y16.39%
EPS Next 2Y15.2%
EPS Next 3Y15.28%
EPS Next 5Y14.6%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.67%
Revenue Next 2Y9.92%
Revenue Next 3Y10.34%
Revenue Next 5Y8.33%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.74%
EBIT Next 3Y28.55%
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 30.88 and the Price/Book (PB) ratio is 5.87.
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%.