WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WMB • US9694571004
68.5 USD
+2.16 (+3.26%)
At close: Feb 3, 2026
68.8 USD
+0.3 (+0.44%)
After Hours: 2/3/2026, 8:04:00 PM
We assign a fundamental rating of 4 out of 10 to WMB. WMB was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. WMB has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, WMB is valued expensive at the moment.
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.
- In the past 5 years WMB has always been profitable.
- WMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WMB has a Return On Assets (4.25%) which is comparable to the rest of the industry.
- WMB's Return On Equity of 18.91% is amongst the best of the industry. WMB outperforms 86.47% of its industry peers.
- WMB has a Return On Invested Capital (6.06%) which 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 21.94%.
- The 3 year average ROIC (5.82%) for WMB is below the current ROIC(6.06%), indicating increased profibility in the last year.
| 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
- WMB has a Profit Margin of 20.59%. This is in the better half of the industry: WMB outperforms 75.85% of its industry peers.
- 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 81.64% of the companies in the same industry.
- In the last couple of years the Operating Margin of WMB has grown nicely.
- WMB has a better Gross Margin (80.62%) than 90.34% of its industry peers.
- WMB's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for WMB remains at a similar level compared to 1 year ago.
- The number of shares outstanding for WMB has been increased compared to 5 years ago.
- WMB has a better debt/assets ratio than last year.
2.2 Solvency
- WMB has an Altman-Z score of 1.22. 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 1.22. This is comparable to the rest of the industry: WMB outperforms 47.83% of its industry peers.
- WMB has a debt to FCF ratio of 16.25. This is a negative value and a sign of low solvency as WMB would need 16.25 years to pay back of all of its debts.
- WMB has a Debt to FCF ratio of 16.25. This is comparable to the rest of the industry: WMB outperforms 47.34% of its industry peers.
- A Debt/Equity ratio of 2.06 is on the high side and indicates that WMB has dependencies on debt financing.
- WMB's Debt to Equity ratio of 2.06 is on the low side compared to the rest of the industry. WMB is outperformed by 79.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.75
WACC8.05%
2.3 Liquidity
- WMB has a Current Ratio of 0.42. This is a bad value and indicates that WMB is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of WMB (0.42) is worse than 87.92% of its industry peers.
- A Quick Ratio of 0.36 indicates that WMB may have some problems paying its short term obligations.
- WMB's Quick ratio of 0.36 is on the low side compared to the rest of the industry. WMB is outperformed by 87.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.63% over the past year.
- 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
- Based on estimates for the next years, WMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.60% on average per year.
- The Revenue is expected to grow by 8.33% on average over the next years. This is quite good.
EPS Next Y17.19%
EPS Next 2Y12.97%
EPS Next 3Y13.79%
EPS Next 5Y14.6%
Revenue Next Year12.79%
Revenue Next 2Y8.97%
Revenue Next 3Y9.64%
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
- WMB is valuated quite expensively with a Price/Earnings ratio of 35.13.
- WMB's Price/Earnings ratio is a bit more expensive when compared to the industry. WMB is more expensive than 62.32% of the companies in the same industry.
- When comparing the Price/Earnings ratio of WMB to the average of the S&P500 Index (28.18), we can say WMB is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 29.49, WMB can be considered very expensive at the moment.
- WMB's Price/Forward Earnings is on the same level as the industry average.
- WMB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.13 | ||
| Fwd PE | 29.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than the industry average as 68.60% of the companies are valued more cheaply.
- The rest of the industry has a similar Price/Free Cash Flow ratio as WMB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.58 | ||
| EV/EBITDA | 17.83 |
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 decent profitability rating of WMB may justify a higher PE ratio.
- WMB's earnings are expected to grow with 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.04
PEG (5Y)2.67
EPS Next 2Y12.97%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
- WMB has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
- WMB's Dividend Yield is comparable with the industry average which is at 3.64.
- Compared to an average S&P500 Dividend Yield of 1.83, WMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
- The dividend of WMB has a limited annual growth rate of 4.57%.
- 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)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.
- WMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.86%
EPS Next 2Y12.97%
EPS Next 3Y13.79%
68.5
+2.16 (+3.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners88.33%
Inst Owner Change-1.11%
Ins Owners0.4%
Ins Owner Change0.07%
Market Cap83.65B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts78.62
Price Target69.89 (2.03%)
Short Float %1.25%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP101.86%
Div Incr Years7
Div Non Decr Years7
Ex-Date03-13 2026-03-13 (0.525)
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)0.14%
PT rev (3m)2.35%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.13 | ||
| Fwd PE | 29.49 | ||
| P/S | 7.28 | ||
| P/FCF | 48.58 | ||
| P/OCF | 15.1 | ||
| P/B | 6.68 | ||
| P/tB | 15.17 | ||
| EV/EBITDA | 17.83 |
EPS(TTM)1.95
EY2.85%
EPS(NY)2.32
Fwd EY3.39%
FCF(TTM)1.41
FCFY2.06%
OCF(TTM)4.54
OCFY6.62%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)2.04
PEG (5Y)2.67
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 | 1.22 |
F-Score5
WACC8.05%
ROIC/WACC0.75
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 Y17.19%
EPS Next 2Y12.97%
EPS Next 3Y13.79%
EPS Next 5Y14.6%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.79%
Revenue Next 2Y8.97%
Revenue Next 3Y9.64%
Revenue Next 5Y8.33%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.7%
EBIT Next 3Y29.43%
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 4 / 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 7 / 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 17.19% 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%.