WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - NYSE:WMB - US9694571004 - Common Stock
59.58 USD
+1.64 (+2.83%)
59.6 USD
+0.02 (+0.03%)
WMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. WMB scores excellent on profitability, but 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.
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
The Return On Assets of WMB (4.32%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 19.50%, WMB belongs to the top of the industry, outperforming 84.76% of the companies in the same industry.
WMB has a Return On Invested Capital (5.68%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for WMB is significantly below the industry average of 21.78%.
| 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 76.19% of its industry peers.
In the last couple of years the Profit Margin of WMB has grown nicely.
WMB has a better Operating Margin (32.59%) than 78.57% of its industry peers.
WMB's Operating Margin has improved in the last couple of years.
WMB has a Gross Margin of 79.80%. This is amongst the best in the industry. WMB outperforms 90.00% 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 | 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
WMB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WMB has about the same amout of shares outstanding than it did 1 year ago.
WMB has more shares outstanding than it did 5 years ago.
WMB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that WMB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.02, WMB perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
The Debt to FCF ratio of WMB is 15.94, which is on the high side as it means it would take WMB, 15.94 years of fcf income to pay off all of its debts.
WMB's Debt to FCF ratio of 15.94 is in line compared to the rest of the industry. WMB outperforms 47.14% of its industry peers.
WMB has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.06, WMB is doing worse than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 15.94 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.72
WACC7.93%
2.3 Liquidity
A Current Ratio of 0.54 indicates that WMB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.54, WMB is doing worse than 87.14% of the companies in the same industry.
WMB has a Quick 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.
Looking at the Quick ratio, with a value of 0.48, WMB is doing worse than 86.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.53% 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 decreased by -3.70% in the past year.
The Revenue has been growing slightly by 5.07% on average over the past years.
EPS 1Y (TTM)0.53%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%22.5%
Revenue 1Y (TTM)-3.7%
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 14.74% yearly.
WMB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.85% yearly.
EPS Next Y16.39%
EPS Next 2Y15.2%
EPS Next 3Y15.28%
EPS Next 5Y14.74%
Revenue Next Year12.67%
Revenue Next 2Y9.92%
Revenue Next 3Y10.34%
Revenue Next 5Y9.85%
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
A Price/Earnings ratio of 31.19 indicates a quite expensive valuation of WMB.
Based on the Price/Earnings ratio, WMB is valued a bit more expensive than the industry average as 61.43% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of WMB to the average of the S&P500 Index (25.83), we can say WMB is valued slightly more expensively.
The Price/Forward Earnings ratio is 24.67, which indicates a rather expensive current valuation of WMB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMB is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (32.68), we can say WMB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.19 | ||
| Fwd PE | 24.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WMB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.6 | ||
| EV/EBITDA | 16.46 |
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 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 15.28% in the coming years.
PEG (NY)1.9
PEG (5Y)2.37
EPS Next 2Y15.2%
EPS Next 3Y15.28%
5. Dividend
5.1 Amount
WMB has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 6.76, WMB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, 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 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)4.57%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
WMB pays out 98.06% 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.
DP98.06%
EPS Next 2Y15.2%
EPS Next 3Y15.28%
59.58
+1.64 (+2.83%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.64%
Inst Owner Change-1.35%
Ins Owners0.4%
Ins Owner Change0.22%
Market Cap72.76B
Revenue(TTM)10.50B
Net Income(TTM)2.43B
Analysts77.24
Price Target68.28 (14.6%)
Short Float %1.05%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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)5.8%
PT rev (3m)6.65%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-2.07%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.19 | ||
| Fwd PE | 24.67 | ||
| P/S | 6.48 | ||
| P/FCF | 40.6 | ||
| P/OCF | 13.61 | ||
| P/B | 5.85 | ||
| P/tB | 13.63 | ||
| EV/EBITDA | 16.46 |
EPS(TTM)1.91
EY3.21%
EPS(NY)2.42
Fwd EY4.05%
FCF(TTM)1.47
FCFY2.46%
OCF(TTM)4.38
OCFY7.34%
SpS9.19
BVpS10.19
TBVpS4.37
PEG (NY)1.9
PEG (5Y)2.37
Graham Number20.92
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%
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-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 | 1.02 |
F-Score6
WACC7.93%
ROIC/WACC0.72
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)0.53%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%22.5%
EPS Next Y16.39%
EPS Next 2Y15.2%
EPS Next 3Y15.28%
EPS Next 5Y14.74%
Revenue 1Y (TTM)-3.7%
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 5Y9.85%
EBIT growth 1Y-0.25%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.74%
EBIT Next 3Y28.55%
EBIT Next 5Y20.48%
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%
WILLIAMS COS INC / WMB FAQ
What is the fundamental rating for WMB stock?
ChartMill assigns a fundamental rating of 4 / 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 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 31.19 and the Price/Book (PB) ratio is 5.85.
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 98.06%.