WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
60.71 USD
+0.22 (+0.36%)
60.31 USD
-0.4 (-0.66%)
Taking everything into account, WMB scores 5 out of 10 in our fundamental rating. WMB was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. WMB scores excellent on profitability, but there are concerns on its financial health. WMB is valied quite expensively at the moment, while 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.
- 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.
1.2 Ratios
- The Return On Assets of WMB (4.25%) is better than 60.58% of its industry peers.
- Looking at the Return On Equity, with a value of 18.91%, WMB belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
- WMB has a Return On Invested Capital (6.06%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for WMB is significantly below the industry average of 21.83%.
- The last Return On Invested Capital (6.06%) for WMB is above the 3 year average (5.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 18.91% | ||
| ROIC | 6.06% |
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 20.59%, WMB is in the better half of the industry, outperforming 76.44% 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 34.18%, WMB belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
- WMB's Operating Margin has improved in the last couple of years.
- WMB's Gross Margin of 80.62% is amongst the best of the industry. WMB outperforms 90.38% of its industry peers.
- In the last couple of years the Gross Margin of WMB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.18% | ||
| PM (TTM) | 20.59% | ||
| GM | 80.62% |
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.
- WMB has about the same amout of shares outstanding than it did 1 year ago.
- WMB has more shares outstanding than it did 5 years ago.
- WMB has a better debt/assets ratio than last year.
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.
- WMB has a Altman-Z score of 1.09. This is comparable to the rest of the industry: WMB outperforms 48.08% of its industry peers.
- The Debt to FCF ratio of WMB is 16.25, which is on the high side as it means it would take WMB, 16.25 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 16.25, WMB perfoms like the industry average, outperforming 47.60% of the companies in the same industry.
- WMB has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
- WMB has a Debt to Equity ratio of 2.06. This is in the lower half of the industry: WMB underperforms 79.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.77
WACC7.89%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that WMB may have some problems paying its short term obligations.
- With a Current ratio value of 0.42, WMB is not doing good in the industry: 87.02% of the companies in the same industry are doing better.
- A Quick Ratio of 0.36 indicates that WMB may have some problems paying its short term obligations.
- WMB has a worse Quick ratio (0.36) than 87.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- WMB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.63%.
- The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
- The Revenue has grown by 9.02% in the past year. This is quite good.
- The Revenue has been growing slightly by 5.07% on average over the past years.
EPS 1Y (TTM)2.63%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%32.5%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
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 14.60% yearly.
- Based on estimates for the next years, WMB will show a quite strong growth in Revenue. The Revenue will grow by 8.33% on average per year.
EPS Next Y17.13%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
EPS Next 5Y14.6%
Revenue Next Year12.86%
Revenue Next 2Y9.29%
Revenue Next 3Y9.91%
Revenue Next 5Y8.33%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- With a Price/Earnings ratio of 31.13, WMB can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of WMB indicates a slightly more expensive valuation: WMB is more expensive than 62.98% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.33. WMB is around the same levels.
- A Price/Forward Earnings ratio of 25.71 indicates a quite expensive valuation of WMB.
- WMB's Price/Forward Earnings ratio is in line with the industry average.
- WMB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.13 | ||
| Fwd PE | 25.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than 67.31% of the companies in the same industry.
- 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 | 43.05 | ||
| EV/EBITDA | 16.31 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
- WMB's earnings are expected to grow with 15.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.82
PEG (5Y)2.36
EPS Next 2Y13.92%
EPS Next 3Y15.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.31%, WMB has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.91, WMB has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.91, WMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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.
- WMB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.57%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 101.86% 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.
DP101.86%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
60.71
+0.22 (+0.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners88.33%
Inst Owner Change0.5%
Ins Owners0.4%
Ins Owner Change0.06%
Market Cap74.14B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts78.62
Price Target69.79 (14.96%)
Short Float %1.3%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP101.86%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.89%
Min EPS beat(2)-6.28%
Max EPS beat(2)2.49%
EPS beat(4)2
Avg EPS beat(4)-4.3%
Min EPS beat(4)-13.58%
Max EPS beat(4)2.49%
EPS beat(8)5
Avg EPS beat(8)1.48%
EPS beat(12)9
Avg EPS beat(12)9.9%
EPS beat(16)12
Avg EPS beat(16)9.18%
Revenue beat(2)2
Avg Revenue beat(2)0.42%
Min Revenue beat(2)0.03%
Max Revenue beat(2)0.8%
Revenue beat(4)4
Avg Revenue beat(4)1.17%
Min Revenue beat(4)0.03%
Max Revenue beat(4)2.59%
Revenue beat(8)7
Avg Revenue beat(8)0.49%
Revenue beat(12)8
Avg Revenue beat(12)0.67%
Revenue beat(16)10
Avg Revenue beat(16)2.33%
PT rev (1m)0.07%
PT rev (3m)7.9%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.13 | ||
| Fwd PE | 25.71 | ||
| P/S | 6.45 | ||
| P/FCF | 43.05 | ||
| P/OCF | 13.38 | ||
| P/B | 5.92 | ||
| P/tB | 13.44 | ||
| EV/EBITDA | 16.31 |
EPS(TTM)1.95
EY3.21%
EPS(NY)2.36
Fwd EY3.89%
FCF(TTM)1.41
FCFY2.32%
OCF(TTM)4.54
OCFY7.47%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.82
PEG (5Y)2.36
Graham Number21.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 18.91% | ||
| ROCE | 7.8% | ||
| ROIC | 6.06% | ||
| ROICexc | 6.06% | ||
| ROICexgc | 7.04% | ||
| OM | 34.18% | ||
| PM (TTM) | 20.59% | ||
| GM | 80.62% | ||
| FCFM | 14.98% |
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%
ROICexgc growth 3Y0.06%
ROICexgc 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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Debt/EBITDA | 4.12 | ||
| Cap/Depr | 164.64% | ||
| Cap/Sales | 33.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.67% | ||
| Profit Quality | 72.75% | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.09 |
F-Score5
WACC7.89%
ROIC/WACC0.77
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)2.63%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%32.5%
EPS Next Y17.13%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
EPS Next 5Y14.6%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.86%
Revenue Next 2Y9.29%
Revenue Next 3Y9.91%
Revenue Next 5Y8.33%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.63%
EBIT Next 3Y29.78%
EBIT Next 5Y20.25%
FCF growth 1Y-34.99%
FCF growth 3Y-5.24%
FCF growth 5Y8.26%
OCF growth 1Y3.67%
OCF growth 3Y8.03%
OCF growth 5Y6.14%
WILLIAMS COS INC / WMB 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.
How profitable is WILLIAMS COS INC (WMB) stock?
WILLIAMS COS INC (WMB) has a profitability rating of 8 / 10.
What is the expected EPS growth for WILLIAMS COS INC (WMB) stock?
The Earnings per Share (EPS) of WILLIAMS COS INC (WMB) is expected to grow by 17.13% in the next year.
Is the dividend of WILLIAMS COS INC sustainable?
The dividend rating of WILLIAMS COS INC (WMB) is 5 / 10 and the dividend payout ratio is 101.86%.