WILLIAMS COS INC (WMB) Fundamental Analysis & Valuation

NYSE:WMB • US9694571004

Current stock price

75.72 USD
-0.59 (-0.77%)
Last:

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

7

1. WMB Profitability Analysis

1.1 Basic Checks

  • In the past year WMB was profitable.
  • In the past year WMB had a positive cash flow from operations.
  • WMB had positive earnings in each of the past 5 years.
  • Each year in the past 5 years WMB had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 4.46%, WMB is in line with its industry, outperforming 59.81% of the companies in the same 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.
  • The Return On Invested Capital of WMB (6.42%) is comparable to the rest of the industry.
  • WMB had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 22.53%.
  • The last Return On Invested Capital (6.42%) for WMB is above the 3 year average (6.15%), which is a sign of increasing profitability.
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

  • With a decent Profit Margin value of 21.88%, WMB is doing good in the industry, outperforming 78.95% of the companies in the same industry.
  • WMB's Profit Margin has improved in the last couple of years.
  • WMB's Operating Margin of 36.90% is amongst the best of the industry. WMB outperforms 84.69% 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 91.39% of the companies in the same industry.
  • WMB's Gross Margin has been stable in the last couple of years.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 5 years ago, WMB has more shares outstanding
  • 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

  • WMB has an Altman-Z score of 1.32. This is a bad value and indicates that WMB is not financially healthy and even has some risk of bankruptcy.
  • WMB has a Altman-Z score of 1.32. This is comparable to the rest of the industry: WMB outperforms 47.37% of its industry peers.
  • 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.
  • WMB has a Debt to FCF ratio (32.66) which is comparable to the rest of the industry.
  • WMB has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of WMB (2.19) is worse than 81.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 32.66
Altman-Z 1.32
ROIC/WACC0.82
WACC7.86%
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 85.65% of the companies in the same industry.
  • A Quick Ratio of 0.48 indicates that WMB may have some problems paying its short term obligations.
  • WMB's Quick ratio of 0.48 is on the low side compared to the rest of the industry. WMB is outperformed by 84.69% 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

More info and screens

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

8

3. WMB Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 24.73% over the past year.
  • The Earnings Per Share has been growing by 21.71% on average over the past years. This is a very strong growth
  • WMB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.78%.
  • WMB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.13% yearly.
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

  • Based on estimates for the next years, WMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.47% on average per year.
  • Based on estimates for the next years, WMB will show a quite strong growth in Revenue. The Revenue will grow by 14.51% on average per year.
EPS Next Y2.64%
EPS Next 2Y7.71%
EPS Next 3Y12.17%
EPS Next 5Y16.47%
Revenue Next Year5.9%
Revenue Next 2Y7.86%
Revenue Next 3Y9.55%
Revenue Next 5Y14.51%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

More info and screens

Find the best growth stocksShow best growing peers

2

4. WMB Valuation Analysis

4.1 Price/Earnings Ratio

  • WMB is valuated quite expensively with a Price/Earnings ratio of 33.36.
  • WMB's Price/Earnings ratio is a bit more expensive when compared to the industry. WMB is more expensive than 62.68% of the companies in the same industry.
  • WMB's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.77.
  • WMB is valuated quite expensively with a Price/Forward Earnings ratio of 32.50.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WMB is on the same level as its industry peers.
  • WMB's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.75.
Industry RankSector Rank
PE 33.36
Fwd PE 32.5
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

  • 66.03% 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 103
EV/EBITDA 18.05
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.
  • WMB's earnings are expected to grow with 12.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)12.63
PEG (5Y)1.54
EPS Next 2Y7.71%
EPS Next 3Y12.17%

More info and screens

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

6

5. WMB Dividend Analysis

5.1 Amount

  • WMB has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 3.21, WMB pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, WMB pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.97%

5.2 History

  • The dividend of WMB has a limited annual growth rate of 4.56%.
  • 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)4.56%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

WMB Fundamentals: All Metrics, Ratios and Statistics

WILLIAMS COS INC

NYSE:WMB (5/1/2026, 10:44:06 AM)

75.72

-0.59 (-0.77%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Industry Strength78.88
Industry Growth83.23
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners88.75%
Inst Owner Change-0.3%
Ins Owners0.19%
Ins Owner Change0.93%
Market Cap92.59B
Revenue(TTM)11.95B
Net Income(TTM)2.62B
Analysts78.67
Price Target80.81 (6.72%)
Short Float %1.42%
Short Ratio2.77
Dividend
Industry RankSector Rank
Dividend Yield 2.97%
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)15.62%
EPS NQ rev (1m)3.69%
EPS NQ rev (3m)7.09%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE 33.36
Fwd PE 32.5
P/S 7.75
P/FCF 103
P/OCF 15.7
P/B 7.23
P/tB 15.32
EV/EBITDA 18.05
EPS(TTM)2.27
EY3%
EPS(NY)2.33
Fwd EY3.08%
FCF(TTM)0.74
FCFY0.97%
OCF(TTM)4.82
OCFY6.37%
SpS9.77
BVpS10.47
TBVpS4.94
PEG (NY)12.63
PEG (5Y)1.54
Graham Number23.1281 (-69.46%)
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 1.32
F-Score7
WACC7.86%
ROIC/WACC0.82
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 5Y16.47%
Revenue 1Y (TTM)13.78%
Revenue growth 3Y2.91%
Revenue growth 5Y9.13%
Sales Q2Q%16.59%
Revenue Next Year5.9%
Revenue Next 2Y7.86%
Revenue Next 3Y9.55%
Revenue Next 5Y14.51%
EBIT growth 1Y32.01%
EBIT growth 3Y13.38%
EBIT growth 5Y11.4%
EBIT Next Year86.37%
EBIT Next 3Y33.03%
EBIT Next 5Y23.95%
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 2 / 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 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 33.36 and the Price/Book (PB) ratio is 7.23.


Can you provide the financial health for WMB stock?

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