WILLIAMS COS INC (WMB) Stock Fundamental Analysis

NYSE:WMB • US9694571004

72.98 USD
+0.81 (+1.12%)
At close: Feb 20, 2026
73.05 USD
+0.07 (+0.1%)
After Hours: 2/20/2026, 7:10:35 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

WMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 206 industry peers in the Oil, Gas & Consumable Fuels industry. WMB scores excellent on profitability, but there are concerns on its financial health. WMB is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year WMB was profitable.
  • In the past year WMB had a positive cash flow from operations.
  • Each year in the past 5 years WMB has been profitable.
  • In the past 5 years WMB always reported a positive cash flow from operatings.
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 0 2B 4B

1.2 Ratios

  • WMB's Return On Assets of 4.25% is in line compared to the rest of the industry. WMB outperforms 59.22% of its industry peers.
  • WMB has a Return On Equity of 18.91%. This is amongst the best in the industry. WMB outperforms 86.89% of its industry peers.
  • WMB has a Return On Invested Capital (6.06%) which 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 21.97%.
  • The 3 year average ROIC (5.82%) for WMB is below the current ROIC(6.06%), indicating increased profibility in the last year.
Industry RankSector 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%
WMB Yearly ROA, ROE, ROICWMB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

  • WMB has a Profit Margin of 20.59%. This is in the better half of the industry: WMB outperforms 76.21% of its industry peers.
  • WMB's Profit Margin has improved in the last couple of years.
  • The Operating Margin of WMB (34.18%) is better than 81.07% of its industry peers.
  • WMB's Operating Margin has improved in the last couple of years.
  • WMB's Gross Margin of 80.62% is amongst the best of the industry. WMB outperforms 90.78% 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 RankSector 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%
WMB Yearly Profit, Operating, Gross MarginsWMB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

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.
  • Compared to 1 year ago, WMB has about the same amount of shares outstanding.
  • WMB has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, WMB has an improved debt to assets ratio.
WMB Yearly Shares OutstandingWMB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 10B 20B 30B 40B 50B

2.2 Solvency

  • Based on the Altman-Z score of 1.29, we must say that WMB is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of WMB (1.29) 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.
  • With a Debt to FCF ratio value of 16.25, WMB perfoms like the industry average, outperforming 47.57% 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's Debt to Equity ratio of 2.06 is on the low side compared to the rest of the industry. WMB is outperformed by 79.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.06
Debt/FCF 16.25
Altman-Z 1.29
ROIC/WACC0.8
WACC7.58%
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 5B 10B 15B 20B

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: 88.35% of the companies in the same industry are doing better.
  • 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 worse Quick ratio (0.36) than 88.35% of its industry peers.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.36
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 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • The Revenue has grown by 9.02% in the past year. This is quite good.
  • 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

  • WMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.19% yearly.
  • Based on estimates for the next years, WMB will show a quite strong growth in Revenue. The Revenue will grow by 10.48% on average per year.
EPS Next Y17.31%
EPS Next 2Y12.66%
EPS Next 3Y13.55%
EPS Next 5Y15.19%
Revenue Next Year12.9%
Revenue Next 2Y9.09%
Revenue Next 3Y9.73%
Revenue Next 5Y10.48%

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.
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. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 37.43, which means the current valuation is very expensive for WMB.
  • 63.59% of the companies in the same industry are cheaper than WMB, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.99, WMB is valued a bit more expensive.
  • Based on the Price/Forward Earnings ratio of 31.59, the valuation of WMB can be described as expensive.
  • WMB's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (28.06), we can say WMB is valued inline with the index average.
Industry RankSector Rank
PE 37.43
Fwd PE 31.59
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

  • Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than 67.96% 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 RankSector Rank
P/FCF 51.76
EV/EBITDA 18.55
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.
  • WMB has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as WMB's earnings are expected to grow with 13.55% in the coming years.
PEG (NY)2.16
PEG (5Y)2.84
EPS Next 2Y12.66%
EPS Next 3Y13.55%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.25%, WMB has a reasonable but not impressive dividend return.
  • WMB's Dividend Yield is comparable with the industry average which is at 3.55.
  • WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
Industry RankSector Rank
Dividend Yield 3.25%

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.
  • 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
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

  • 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 2Y12.66%
EPS Next 3Y13.55%
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 0 1B 2B 3B
WMB Dividend Payout.WMB Dividend Payout, showing the Payout Ratio.WMB Dividend Payout.PayoutRetained Earnings

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WILLIAMS COS INC

NYSE:WMB (2/20/2026, 7:10:35 PM)

After market: 73.05 +0.07 (+0.1%)

72.98

+0.81 (+1.12%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-03
Earnings (Next)02-23
Inst Owners88.33%
Inst Owner Change1.59%
Ins Owners0.4%
Ins Owner Change-0.35%
Market Cap89.12B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts78.62
Price Target70.72 (-3.1%)
Short Float %1.34%
Short Ratio2.17
Dividend
Industry RankSector Rank
Dividend Yield 3.25%
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP101.86%
Div Incr Years7
Div Non Decr Years7
Ex-Date03-13
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)1.32%
PT rev (3m)3.56%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.2%
Valuation
Industry RankSector Rank
PE 37.43
Fwd PE 31.59
P/S 7.75
P/FCF 51.76
P/OCF 16.09
P/B 7.12
P/tB 16.16
EV/EBITDA 18.55
EPS(TTM)1.95
EY2.67%
EPS(NY)2.31
Fwd EY3.17%
FCF(TTM)1.41
FCFY1.93%
OCF(TTM)4.54
OCFY6.22%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)2.16
PEG (5Y)2.84
Graham Number21.21
Profitability
Industry RankSector 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 RankSector 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 1.29
F-Score5
WACC7.58%
ROIC/WACC0.8
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 Y17.31%
EPS Next 2Y12.66%
EPS Next 3Y13.55%
EPS Next 5Y15.19%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.9%
Revenue Next 2Y9.09%
Revenue Next 3Y9.73%
Revenue Next 5Y10.48%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.7%
EBIT Next 3Y29.43%
EBIT Next 5Y20.8%
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 4 / 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.


How profitable is WILLIAMS COS INC (WMB) stock?

WILLIAMS COS INC (WMB) has a profitability rating of 7 / 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 17.31% 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%.