WILLIAMS COS INC (WMB) Fundamental Analysis & Valuation

NYSE:WMB • US9694571004

Current stock price

70.76 USD
-0.68 (-0.95%)
At close:
70.86 USD
+0.1 (+0.14%)
After Hours:

This WMB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. WMB Profitability Analysis

1.1 Basic Checks

  • WMB had positive earnings in the past year.
  • WMB had a positive operating cash flow in the past year.
  • In the past 5 years WMB has always been profitable.
  • WMB had a positive operating cash flow in each of the past 5 years.
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 2025 0 2B 4B

1.2 Ratios

  • The Return On Assets of WMB (4.46%) is comparable to the rest of the industry.
  • WMB has a Return On Equity of 20.42%. This is amongst the best in the industry. WMB outperforms 85.17% of its industry peers.
  • WMB has a Return On Invested Capital of 6.42%. This is in the better half of the industry: WMB outperforms 60.29% of its industry peers.
  • WMB had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 22.60%.
  • The 3 year average ROIC (6.15%) for WMB is below the current ROIC(6.42%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.46%
ROE 20.42%
ROIC 6.42%
ROA(3y)4.86%
ROA(5y)4.4%
ROE(3y)21.3%
ROE(5y)18.99%
ROIC(3y)6.15%
ROIC(5y)5.72%
WMB Yearly ROA, ROE, ROICWMB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

1.3 Margins

  • WMB's Profit Margin of 21.88% is fine compared to the rest of the industry. WMB outperforms 78.95% of its industry peers.
  • In the last couple of years the Profit Margin of WMB has grown nicely.
  • WMB has a better Operating Margin (36.90%) than 85.17% of its industry peers.
  • In the last couple of years the Operating Margin of WMB has grown nicely.
  • Looking at the Gross Margin, with a value of 81.60%, WMB belongs to the top of the industry, outperforming 91.87% of the companies in the same industry.
  • In the last couple of years the Gross Margin of WMB has remained more or less at the same level.
Industry RankSector Rank
OM 36.9%
PM (TTM) 21.88%
GM 81.6%
OM growth 3Y10.17%
OM growth 5Y2.07%
PM growth 3Y5.46%
PM growth 5Y52.03%
GM growth 3Y6.02%
GM growth 5Y0.62%
WMB Yearly Profit, Operating, Gross MarginsWMB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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1

2. WMB Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WMB is destroying value.
  • WMB has more shares outstanding than it did 1 year ago.
  • WMB has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for WMB is higher compared to a year ago.
WMB Yearly Shares OutstandingWMB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • Based on the Altman-Z score of 1.24, we must say that WMB is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.24, WMB is in line with its industry, outperforming 44.98% of the companies in the same industry.
  • WMB has a debt to FCF ratio of 32.66. This is a negative value and a sign of low solvency as WMB would need 32.66 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 32.66, WMB is in line with its industry, outperforming 44.50% of the companies in the same industry.
  • WMB has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 2.19, WMB is not doing good in the industry: 80.38% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 32.66
Altman-Z 1.24
ROIC/WACC0.84
WACC7.66%
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 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • WMB has a Current Ratio of 0.53. 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 Current ratio, with a value of 0.53, WMB is doing worse than 84.69% of the companies in the same industry.
  • WMB has a Quick Ratio of 0.53. 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 83.25% of its industry peers.
Industry RankSector Rank
Current Ratio 0.53
Quick Ratio 0.48
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 2025 2B 4B 6B

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

8

3. WMB Growth Analysis

3.1 Past

  • WMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.73%, which is quite impressive.
  • Measured over the past years, WMB shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.71% on average per year.
  • Looking at the last year, WMB shows a quite strong growth in Revenue. The Revenue has grown by 13.78% in the last year.
  • Measured over the past years, WMB shows a quite strong growth in Revenue. The Revenue has been growing by 9.13% on average per year.
EPS 1Y (TTM)24.73%
EPS 3Y8.44%
EPS 5Y21.71%
EPS Q2Q%80%
Revenue 1Y (TTM)13.78%
Revenue growth 3Y2.91%
Revenue growth 5Y9.13%
Sales Q2Q%16.59%

3.2 Future

  • The Earnings Per Share is expected to grow by 15.96% on average over the next years. This is quite good.
  • Based on estimates for the next years, WMB will show a quite strong growth in Revenue. The Revenue will grow by 14.41% on average per year.
EPS Next Y2.64%
EPS Next 2Y7.71%
EPS Next 3Y12.17%
EPS Next 5Y15.96%
Revenue Next Year5.77%
Revenue Next 2Y7.8%
Revenue Next 3Y9.28%
Revenue Next 5Y14.41%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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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3

4. WMB Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 31.17, the valuation of WMB can be described as expensive.
  • 62.68% 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 27.38. WMB is around the same levels.
  • Based on the Price/Forward Earnings ratio of 30.37, the valuation of WMB can be described as expensive.
  • WMB's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (38.20), we can say WMB is valued slightly cheaper.
Industry RankSector Rank
PE 31.17
Fwd PE 30.37
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

  • 64.59% of the companies in the same industry are cheaper than WMB, based on the Enterprise Value to EBITDA ratio.
  • WMB's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 96.25
EV/EBITDA 17.04
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.
  • The excellent profitability rating of WMB may justify a higher PE ratio.
  • WMB's earnings are expected to grow with 12.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.8
PEG (5Y)1.44
EPS Next 2Y7.71%
EPS Next 3Y12.17%

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

5

5. WMB Dividend Analysis

5.1 Amount

  • WMB has a Yearly Dividend Yield of 2.88%. Purely for dividend investing, there may be better candidates out there.
  • WMB's Dividend Yield is comparable with the industry average which is at 3.23.
  • WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.88%

5.2 History

  • The dividend of WMB has a limited annual growth rate of 4.56%.
  • 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)4.56%
Div Incr Years8
Div Non Decr Years8
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

  • 93.38% 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.
DP93.38%
EPS Next 2Y7.71%
EPS Next 3Y12.17%
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 2025 0 1B 2B 3B
WMB Dividend Payout.WMB Dividend Payout, showing the Payout Ratio.WMB Dividend Payout.PayoutRetained Earnings

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WMB Fundamentals: All Metrics, Ratios and Statistics

WILLIAMS COS INC

NYSE:WMB (4/15/2026, 8:26:19 PM)

After market: 70.86 +0.1 (+0.14%)

70.76

-0.68 (-0.95%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners88.75%
Inst Owner Change-0.01%
Ins Owners0.19%
Ins Owner Change0.93%
Market Cap86.53B
Revenue(TTM)11.95B
Net Income(TTM)2.62B
Analysts78.67
Price Target80.81 (14.2%)
Short Float %1.33%
Short Ratio2.23
Dividend
Industry RankSector Rank
Dividend Yield 2.88%
Yearly Dividend2
Dividend Growth(5Y)4.56%
DP93.38%
Div Incr Years8
Div Non Decr Years8
Ex-Date03-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.89%
Min EPS beat(2)2.49%
Max EPS beat(2)25.3%
EPS beat(4)3
Avg EPS beat(4)5.41%
Min EPS beat(4)-6.28%
Max EPS beat(4)25.3%
EPS beat(8)5
Avg EPS beat(8)4.26%
EPS beat(12)9
Avg EPS beat(12)11.02%
EPS beat(16)12
Avg EPS beat(16)9.93%
Revenue beat(2)2
Avg Revenue beat(2)2.46%
Min Revenue beat(2)0.03%
Max Revenue beat(2)4.89%
Revenue beat(4)4
Avg Revenue beat(4)2.08%
Min Revenue beat(4)0.03%
Max Revenue beat(4)4.89%
Revenue beat(8)8
Avg Revenue beat(8)2.03%
Revenue beat(12)9
Avg Revenue beat(12)1.26%
Revenue beat(16)10
Avg Revenue beat(16)0.42%
PT rev (1m)4.78%
PT rev (3m)15.78%
EPS NQ rev (1m)2.84%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.02%
Valuation
Industry RankSector Rank
PE 31.17
Fwd PE 30.37
P/S 7.24
P/FCF 96.25
P/OCF 14.67
P/B 6.76
P/tB 14.32
EV/EBITDA 17.04
EPS(TTM)2.27
EY3.21%
EPS(NY)2.33
Fwd EY3.29%
FCF(TTM)0.74
FCFY1.04%
OCF(TTM)4.82
OCFY6.82%
SpS9.77
BVpS10.47
TBVpS4.94
PEG (NY)11.8
PEG (5Y)1.44
Graham Number23.1281 (-67.31%)
Profitability
Industry RankSector Rank
ROA 4.46%
ROE 20.42%
ROCE 8.4%
ROIC 6.42%
ROICexc 6.43%
ROICexgc 7.37%
OM 36.9%
PM (TTM) 21.88%
GM 81.6%
FCFM 7.52%
ROA(3y)4.86%
ROA(5y)4.4%
ROE(3y)21.3%
ROE(5y)18.99%
ROIC(3y)6.15%
ROIC(5y)5.72%
ROICexc(3y)6.27%
ROICexc(5y)5.83%
ROICexgc(3y)7.35%
ROICexgc(5y)6.92%
ROCE(3y)8.05%
ROCE(5y)7.46%
ROICexgc growth 3Y4.59%
ROICexgc growth 5Y4.87%
ROICexc growth 3Y6.28%
ROICexc growth 5Y6.14%
OM growth 3Y10.17%
OM growth 5Y2.07%
PM growth 3Y5.46%
PM growth 5Y52.03%
GM growth 3Y6.02%
GM growth 5Y0.62%
F-Score7
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 32.66
Debt/EBITDA 4.15
Cap/Depr 213%
Cap/Sales 41.83%
Interest Coverage 3.14
Cash Conversion 87.3%
Profit Quality 34.38%
Current Ratio 0.53
Quick Ratio 0.48
Altman-Z 1.24
F-Score7
WACC7.66%
ROIC/WACC0.84
Cap/Depr(3y)152.54%
Cap/Depr(5y)127.79%
Cap/Sales(3y)30.29%
Cap/Sales(5y)24.68%
Profit Quality(3y)81.28%
Profit Quality(5y)109.89%
High Growth Momentum
Growth
EPS 1Y (TTM)24.73%
EPS 3Y8.44%
EPS 5Y21.71%
EPS Q2Q%80%
EPS Next Y2.64%
EPS Next 2Y7.71%
EPS Next 3Y12.17%
EPS Next 5Y15.96%
Revenue 1Y (TTM)13.78%
Revenue growth 3Y2.91%
Revenue growth 5Y9.13%
Sales Q2Q%16.59%
Revenue Next Year5.77%
Revenue Next 2Y7.8%
Revenue Next 3Y9.28%
Revenue Next 5Y14.41%
EBIT growth 1Y32.01%
EBIT growth 3Y13.38%
EBIT growth 5Y11.4%
EBIT Next Year86.37%
EBIT Next 3Y33.03%
EBIT Next 5Y23.87%
FCF growth 1Y-60.84%
FCF growth 3Y-29.87%
FCF growth 5Y-16.55%
OCF growth 1Y18.58%
OCF growth 3Y6.45%
OCF growth 5Y11.03%

WILLIAMS COS INC / WMB Fundamental Analysis FAQ

What is the fundamental rating for WMB stock?

ChartMill assigns a fundamental rating of 5 / 10 to WMB.


Can you provide the valuation status for WILLIAMS COS INC?

ChartMill assigns a valuation rating of 3 / 10 to WILLIAMS COS INC (WMB). This can be considered as Overvalued.


Can you provide the profitability details for WILLIAMS COS INC?

WILLIAMS COS INC (WMB) has a profitability rating of 8 / 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 31.17 and the Price/Book (PB) ratio is 6.76.


Can you provide the financial health for WMB stock?

The financial health rating of WILLIAMS COS INC (WMB) is 1 / 10.