WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - NYSE:WMB - US9694571004 - Common Stock
62.3 USD
-0.76 (-1.21%)
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. 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.
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.
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.
1.2 Ratios
With a Return On Assets value of 4.32%, WMB perfoms like the industry average, outperforming 59.72% of the companies in the same industry.
WMB has a Return On Equity of 19.50%. This is amongst the best in the industry. WMB outperforms 84.83% of its industry peers.
WMB has a Return On Invested Capital (5.68%) 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 21.53%.
| 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
Looking at the Profit Margin, with a value of 21.61%, WMB is in the better half of the industry, outperforming 76.30% of the companies in the same industry.
In the last couple of years the Profit Margin of WMB has grown nicely.
WMB has a Operating Margin of 32.59%. This is in the better half 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's Gross Margin of 79.80% is amongst the best of 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
WMB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that WMB is in the distress zone and has some risk of bankruptcy.
WMB's Altman-Z score of 1.10 is in line compared to the rest of the industry. WMB outperforms 45.50% of its industry peers.
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.
The Debt to FCF ratio of WMB (15.94) 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.
With a Debt to Equity ratio value of 2.06, WMB is not doing good in the industry: 81.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 15.94 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.72
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.54 indicates that WMB may have some problems paying its short term obligations.
WMB has a worse Current ratio (0.54) than 87.20% of its industry peers.
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.
WMB has a Quick ratio of 0.48. This is amonst the worse of the industry: WMB underperforms 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.
The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
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
Based on estimates for the next years, WMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.52% on average per year.
The Revenue is expected to grow by 10.01% on average over the next years. This is quite good.
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
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 34.23, which means the current valuation is very expensive for WMB.
62.09% of the companies in the same industry are cheaper than WMB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WMB to the average of the S&P500 Index (27.69), we can say WMB is valued slightly more expensively.
WMB is valuated quite expensively with a Price/Forward Earnings ratio of 25.49.
61.14% of the companies in the same industry are cheaper than WMB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.18. WMB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 25.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than the industry average as 68.72% of the companies are valued more cheaply.
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 | 42.46 | ||
| EV/EBITDA | 17.51 |
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.
WMB's earnings are expected to grow with 14.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)2.6
EPS Next 2Y15.88%
EPS Next 3Y14.42%
5. Dividend
5.1 Amount
WMB has a Yearly Dividend Yield of 3.20%.
WMB's Dividend Yield is comparable with the industry average which is at 6.30.
WMB's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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.
The dividend of WMB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.06%
EPS Next 2Y15.88%
EPS Next 3Y14.42%
NYSE:WMB (10/21/2025, 2:08:07 PM)
62.3
-0.76 (-1.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.64%
Inst Owner Change-0.26%
Ins Owners0.4%
Ins Owner Change0.31%
Market Cap76.08B
Analysts76.43
Price Target64.68 (3.82%)
Short Float %1.08%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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)1.03%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)1.53%
Revenue NQ rev (3m)2.02%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 25.49 | ||
| P/S | 6.78 | ||
| P/FCF | 42.46 | ||
| P/OCF | 14.24 | ||
| P/B | 6.12 | ||
| P/tB | 14.25 | ||
| EV/EBITDA | 17.51 |
EPS(TTM)1.82
EY2.92%
EPS(NY)2.44
Fwd EY3.92%
FCF(TTM)1.47
FCFY2.36%
OCF(TTM)4.38
OCFY7.02%
SpS9.19
BVpS10.19
TBVpS4.37
PEG (NY)2.03
PEG (5Y)2.6
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 | 1.1 |
F-Score6
WACC7.88%
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)-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%