WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - NYSE:WMB - US9694571004 - Common Stock
63.1 USD
-0.4 (-0.63%)
63.4771 USD
+0.38 (+0.6%)
WMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 211 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. While showing a medium growth rate, WMB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WMB was profitable.
WMB had a positive operating cash flow in the past year.
Each year in the past 5 years WMB has been profitable.
Each year in the past 5 years WMB had a positive operating cash flow.
1.2 Ratios
WMB's Return On Assets of 4.32% is in line compared to the rest of the industry. WMB outperforms 59.24% of its industry peers.
The Return On Equity of WMB (19.50%) is better than 84.36% of its industry peers.
WMB has a Return On Invested Capital of 5.68%. This is comparable to the rest of the industry: WMB outperforms 50.71% 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 21.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 19.5% | ||
| ROIC | 5.68% |
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 Profit Margin of 21.61%. This is in the better half of the industry: WMB outperforms 75.83% of its industry peers.
WMB's Profit Margin has improved in the last couple of years.
WMB's Operating Margin of 32.59% is fine compared to the rest of the industry. WMB outperforms 79.62% of its industry peers.
In the last couple of years the Operating Margin of WMB has grown nicely.
WMB has a Gross Margin of 79.80%. This is amongst the best in the industry. WMB outperforms 90.05% of its industry peers.
WMB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.59% | ||
| PM (TTM) | 21.61% | ||
| GM | 79.8% |
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
The debt/assets ratio for WMB has been reduced compared to a year ago.
2.2 Solvency
WMB has an Altman-Z score of 1.11. 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 (1.11) which is comparable to the rest of the industry.
WMB has a debt to FCF ratio of 15.94. This is a negative value and a sign of low solvency as WMB would need 15.94 years to pay back of all of its debts.
WMB has a Debt to FCF ratio (15.94) which is comparable to the rest of the industry.
WMB has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WMB (2.06) is worse than 81.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 15.94 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.7
WACC8.17%
2.3 Liquidity
WMB has a Current Ratio of 0.54. 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 0.54 is on the low side compared to the rest of the industry. WMB is outperformed by 87.20% of its industry peers.
A Quick Ratio of 0.48 indicates that WMB may have some problems paying its short term obligations.
WMB's Quick ratio of 0.48 is on the low side compared to the rest of the industry. WMB is outperformed by 86.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for WMB have decreased by -8.08% in the last 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.
The Revenue has been growing slightly by 7.42% in the past 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)-8.08%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%4.65%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%12.82%
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 13.52% yearly.
Based on estimates for the next years, WMB will show a quite strong growth in Revenue. The Revenue will grow by 10.01% on average per year.
EPS Next Y16.84%
EPS Next 2Y15.88%
EPS Next 3Y14.42%
EPS Next 5Y13.52%
Revenue Next Year12.63%
Revenue Next 2Y10.02%
Revenue Next 3Y10%
Revenue Next 5Y10.01%
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
WMB is valuated quite expensively with a Price/Earnings ratio of 34.67.
WMB's Price/Earnings ratio is a bit more expensive when compared to the industry. WMB is more expensive than 62.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of WMB to the average of the S&P500 Index (27.70), we can say WMB is valued slightly more expensively.
WMB is valuated quite expensively with a Price/Forward Earnings ratio of 25.82.
61.14% of the companies in the same industry are cheaper than WMB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.15, WMB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.67 | ||
| Fwd PE | 25.82 |
4.2 Price Multiples
67.77% of the companies in the same industry are cheaper than WMB, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as WMB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43 | ||
| EV/EBITDA | 17.6 |
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.
WMB's earnings are expected to grow with 14.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.06
PEG (5Y)2.63
EPS Next 2Y15.88%
EPS Next 3Y14.42%
5. Dividend
5.1 Amount
WMB has a Yearly Dividend Yield of 3.12%.
Compared to an average industry Dividend Yield of 6.07, WMB has a dividend in line with its industry peers.
WMB's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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
98.06% of the earnings are spent on dividend by WMB. This is not a sustainable payout ratio.
WMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.06%
EPS Next 2Y15.88%
EPS Next 3Y14.42%
63.1
-0.4 (-0.63%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.64%
Inst Owner Change0.01%
Ins Owners0.4%
Ins Owner Change0.31%
Market Cap77.06B
Analysts76.43
Price Target64.68 (2.5%)
Short Float %1.08%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP98.06%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.07%
Min EPS beat(2)-6.28%
Max EPS beat(2)0.14%
EPS beat(4)1
Avg EPS beat(4)-6.19%
Min EPS beat(4)-13.58%
Max EPS beat(4)0.14%
EPS beat(8)5
Avg EPS beat(8)3.2%
EPS beat(12)9
Avg EPS beat(12)10.64%
EPS beat(16)12
Avg EPS beat(16)10.2%
Revenue beat(2)2
Avg Revenue beat(2)1.69%
Min Revenue beat(2)0.8%
Max Revenue beat(2)2.59%
Revenue beat(4)4
Avg Revenue beat(4)2.18%
Min Revenue beat(4)0.8%
Max Revenue beat(4)4.08%
Revenue beat(8)6
Avg Revenue beat(8)0.23%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)3.41%
PT rev (1m)0.23%
PT rev (3m)1.62%
EPS NQ rev (1m)1.16%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.67 | ||
| Fwd PE | 25.82 | ||
| P/S | 6.86 | ||
| P/FCF | 43 | ||
| P/OCF | 14.42 | ||
| P/B | 6.2 | ||
| P/tB | 14.44 | ||
| EV/EBITDA | 17.6 |
EPS(TTM)1.82
EY2.88%
EPS(NY)2.44
Fwd EY3.87%
FCF(TTM)1.47
FCFY2.33%
OCF(TTM)4.38
OCFY6.94%
SpS9.19
BVpS10.19
TBVpS4.37
PEG (NY)2.06
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 19.5% | ||
| ROCE | 7.3% | ||
| ROIC | 5.68% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 6.76% | ||
| OM | 32.59% | ||
| PM (TTM) | 21.61% | ||
| GM | 79.8% | ||
| FCFM | 15.96% |
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%
ROICexcg growth 3Y0.06%
ROICexcg 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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 15.94 | ||
| Debt/EBITDA | 4.28 | ||
| Cap/Depr | 153.04% | ||
| Cap/Sales | 31.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.38% | ||
| Profit Quality | 73.87% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.11 |
F-Score6
WACC8.17%
ROIC/WACC0.7
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)-8.08%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%4.65%
EPS Next Y16.84%
EPS Next 2Y15.88%
EPS Next 3Y14.42%
EPS Next 5Y13.52%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%12.82%
Revenue Next Year12.63%
Revenue Next 2Y10.02%
Revenue Next 3Y10%
Revenue Next 5Y10.01%
EBIT growth 1Y-0.25%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.74%
EBIT Next 3Y28.55%
EBIT Next 5Y19.88%
FCF growth 1Y-35.03%
FCF growth 3Y-5.24%
FCF growth 5Y8.26%
OCF growth 1Y-4.57%
OCF growth 3Y8.03%
OCF growth 5Y6.14%