WILLIAMS COS INC (WMB)
US9694571004 - Common Stock
Overall WMB gets a fundamental rating of 4 out of 10. We evaluated WMB against 204 industry peers in the Oil, Gas & Consumable Fuels industry. While WMB has a great profitability rating, there are quite some concerns on its financial health. WMB has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years WMB always reported a positive cash flow from operatings.
1.2 Ratios
WMB has a Return On Assets of 5.34%. This is comparable to the rest of the industry: WMB outperforms 48.28% of its industry peers.
The Return On Equity of WMB (23.13%) is better than 76.85% of its industry peers.
The Return On Invested Capital of WMB (5.94%) is worse than 60.59% of its industry peers.
WMB had an Average Return On Invested Capital over the past 3 years of 5.86%. This is significantly below the industry average of 22.54%.
The last Return On Invested Capital (5.94%) for WMB is above the 3 year average (5.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 23.13% | ||
| ROIC | 5.94% |
ROA(3y)4.48%
ROA(5y)3.15%
ROE(3y)18.89%
ROE(5y)12.96%
ROIC(3y)5.86%
ROIC(5y)5.41%
1.3 Margins
With a decent Profit Margin value of 27.26%, WMB is doing good in the industry, outperforming 74.88% of the companies in the same industry.
In the last couple of years the Profit Margin of WMB has grown nicely.
WMB has a better Operating Margin (34.51%) than 68.47% of its industry peers.
In the last couple of years the Operating Margin of WMB has grown nicely.
The Gross Margin of WMB (81.56%) is better than 90.64% of its industry peers.
In the last couple of years the Gross Margin of WMB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.51% | ||
| PM (TTM) | 27.26% | ||
| GM | 81.56% |
OM growth 3Y4.85%
OM growth 5Y11.06%
PM growth 3Y121.08%
PM growth 5YN/A
GM growth 3Y0.93%
GM growth 5Y3.88%
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.
The debt/assets ratio for WMB is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that WMB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.09, WMB perfoms like the industry average, outperforming 40.89% of the companies in the same industry.
The Debt to FCF ratio of WMB is 9.03, which is on the high side as it means it would take WMB, 9.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.03, WMB is in line with its industry, outperforming 44.83% of the companies in the same industry.
WMB has a Debt/Equity ratio of 2.00. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.00, WMB is not doing good in the industry: 84.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | 9.03 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.76
WACC7.78%
2.3 Liquidity
WMB has a Current Ratio of 0.57. This is a bad value and indicates that WMB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.57, WMB is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.51 indicates that WMB may have some problems paying its short term obligations.
WMB has a worse Quick ratio (0.51) than 85.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for WMB have decreased strongly by -15.18% in the last year.
The Earnings Per Share has been growing by 26.12% on average over the past years. This is a very strong growth
Looking at the last year, WMB shows a decrease in Revenue. The Revenue has decreased by -4.61% in the last year.
Measured over the past years, WMB shows a small growth in Revenue. The Revenue has been growing by 4.66% on average per year.
EPS 1Y (TTM)-15.18%
EPS 3Y36.67%
EPS 5Y26.12%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y12.21%
Revenue growth 5Y4.66%
Sales Q2Q%3.67%
3.2 Future
Based on estimates for the next years, WMB will show a small growth in Earnings Per Share. The EPS will grow by 4.95% on average per year.
WMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.24% yearly.
EPS Next Y-14.91%
EPS Next 2Y-1.24%
EPS Next 3Y3.44%
EPS Next 5Y4.95%
Revenue Next Year-5.83%
Revenue Next 2Y2.2%
Revenue Next 3Y4.37%
Revenue Next 5Y4.24%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.44 indicates a quite expensive valuation of WMB.
69.46% of the companies in the same industry are cheaper than WMB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.96. WMB is around the same levels.
Based on the Price/Forward Earnings ratio of 28.23, the valuation of WMB can be described as expensive.
Based on the Price/Forward Earnings ratio, WMB is valued a bit more expensive than 68.47% of the companies in the same industry.
WMB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.44 | ||
| Fwd PE | 28.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than the industry average as 75.37% 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 | 24.26 | ||
| EV/EBITDA | 16.82 |
4.3 Compensation for Growth
WMB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y-1.24%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
WMB has a Yearly Dividend Yield of 3.42%.
Compared to an average industry Dividend Yield of 6.45, WMB has a dividend in line with its industry peers.
WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of WMB has a limited annual growth rate of 5.62%.
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)5.62%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
WMB pays out 79.37% of its income as dividend. This is not a sustainable payout ratio.
WMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP79.37%
EPS Next 2Y-1.24%
EPS Next 3Y3.44%
WILLIAMS COS INC
NYSE:WMB (11/21/2024, 8:04:00 PM)
After market: 59.7 -0.04 (-0.07%)59.74
+1.04 (+1.77%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap72.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.44 | ||
| Fwd PE | 28.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 23.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.51% | ||
| PM (TTM) | 27.26% | ||
| GM | 81.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-15.18%
EPS 3Y36.67%
EPS 5Y
EPS Q2Q%
EPS Next Y-14.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.61%
Revenue growth 3Y12.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y