WILLIAMS COS INC (WMB) Fundamental Analysis & Valuation

NYSE:WMB • US9694571004

Current stock price

73.32 USD
+0.28 (+0.38%)
At close:
73.32 USD
0 (0%)
After Hours:

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

  • 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.
  • 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

  • WMB has a Return On Assets of 4.46%. This is comparable to the rest of the industry: WMB outperforms 59.81% of its industry peers.
  • Looking at the Return On Equity, with a value of 20.42%, WMB belongs to the top of the industry, outperforming 85.17% of the companies in the same industry.
  • The Return On Invested Capital of WMB (6.42%) 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 22.52%.
  • 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

  • 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.
  • With an excellent Operating Margin value of 36.90%, WMB belongs to the best of the industry, outperforming 84.69% of the companies in the same industry.
  • WMB's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 81.60%, WMB belongs to the best 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

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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.
  • Compared to 1 year ago, WMB has more shares outstanding
  • The number of shares outstanding for WMB has been increased compared to 5 years ago.
  • WMB has a worse debt/assets ratio than last year.
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 1.27. This is a bad value and indicates that WMB is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 1.27, WMB perfoms like the industry average, outperforming 46.89% 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.
  • 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.
  • Looking at the Debt to Equity ratio, with a value of 2.19, WMB is doing worse than 81.82% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 32.66
Altman-Z 1.27
ROIC/WACC0.83
WACC7.77%
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

  • A Current Ratio of 0.53 indicates that WMB may have some problems paying its short term obligations.
  • WMB has a Current ratio of 0.53. This is amonst the worse of the industry: WMB underperforms 85.65% of its industry peers.
  • A Quick Ratio of 0.48 indicates that WMB may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.48, WMB is doing worse than 84.69% of the companies in the same industry.
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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8

3. WMB Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 24.73% over the past year.
  • WMB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.71% yearly.
  • 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

  • WMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.47% yearly.
  • WMB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.51% yearly.
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

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2

4. WMB Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 32.30, the valuation of WMB can be described as expensive.
  • Based on the Price/Earnings ratio, WMB is valued a bit more expensive than 62.20% 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 26.91.
  • Based on the Price/Forward Earnings ratio of 31.47, the valuation of WMB can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WMB.
  • WMB is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32.3
Fwd PE 31.47
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

  • Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than the industry average as 65.55% of the companies are valued more cheaply.
  • WMB's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 99.73
EV/EBITDA 17.45
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 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 12.17% in the coming years.
PEG (NY)12.23
PEG (5Y)1.49
EPS Next 2Y7.71%
EPS Next 3Y12.17%

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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 3.22, WMB pays a bit more dividend than its industry peers.
  • WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.97%

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.
  • WMB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 (4/29/2026, 5:05:00 PM)

After market: 73.32 0 (0%)

73.32

+0.28 (+0.38%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Industry Strength73.29
Industry Growth84.47
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners88.75%
Inst Owner Change-0.3%
Ins Owners0.19%
Ins Owner Change0.93%
Market Cap89.66B
Revenue(TTM)11.95B
Net Income(TTM)2.62B
Analysts78.67
Price Target80.81 (10.22%)
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 32.3
Fwd PE 31.47
P/S 7.5
P/FCF 99.73
P/OCF 15.2
P/B 7
P/tB 14.83
EV/EBITDA 17.45
EPS(TTM)2.27
EY3.1%
EPS(NY)2.33
Fwd EY3.18%
FCF(TTM)0.74
FCFY1%
OCF(TTM)4.82
OCFY6.58%
SpS9.77
BVpS10.47
TBVpS4.94
PEG (NY)12.23
PEG (5Y)1.49
Graham Number23.1281 (-68.46%)
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 1.27
F-Score7
WACC7.77%
ROIC/WACC0.83
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 32.3 and the Price/Book (PB) ratio is 7.


Can you provide the financial health for WMB stock?

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