WILLIAMS COS INC (WMB) Fundamental Analysis & Valuation

NYSE:WMB • US9694571004

Current stock price

73.81 USD
-0.65 (-0.87%)
At close:
73.8257 USD
+0.02 (+0.02%)
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.
  • 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 (4.46%) which 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 85.65% of its industry peers.
  • WMB's Return On Invested Capital of 6.42% is fine compared to the rest of the industry. WMB outperforms 60.29% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WMB is significantly below the industry average of 23.05%.
  • 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 78.47% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WMB has grown nicely.
  • The Operating Margin of WMB (36.90%) is better than 85.17% of its industry peers.
  • In the last couple of years the Operating Margin of WMB has grown nicely.
  • WMB has a better Gross Margin (81.60%) than 91.87% 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 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
  • 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

  • Based on the Altman-Z score of 1.29, we must say that WMB is in the distress zone and has some risk of bankruptcy.
  • WMB has a Altman-Z score of 1.29. This is comparable to the rest of the industry: WMB outperforms 47.85% of its industry peers.
  • The Debt to FCF ratio of WMB is 32.66, which is on the high side as it means it would take WMB, 32.66 years of fcf income to pay off all of its debts.
  • WMB's Debt to FCF ratio of 32.66 is in line compared to the rest of the industry. WMB outperforms 43.54% of its industry peers.
  • A Debt/Equity ratio of 2.19 is on the high side and indicates that WMB has dependencies on debt financing.
  • The Debt to Equity ratio of WMB (2.19) is worse than 80.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 32.66
Altman-Z 1.29
ROIC/WACC0.82
WACC7.8%
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.
  • WMB has a worse Current ratio (0.53) than 83.73% of its industry peers.
  • 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.
  • Looking at the Quick ratio, with a value of 0.48, WMB is doing worse than 82.30% 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

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

  • 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.
  • The Revenue has been growing by 9.13% on average over the past years. This is quite good.
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 15.96% on average per year.
  • The Revenue is expected to grow by 14.41% on average over the next years. This is quite good.
EPS Next Y2.56%
EPS Next 2Y8.48%
EPS Next 3Y12.85%
EPS Next 5Y15.96%
Revenue Next Year5.8%
Revenue Next 2Y7.78%
Revenue Next 3Y9.19%
Revenue Next 5Y14.41%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

More info and screens

Find the best growth stocksShow best growing peers

2

4. WMB Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 32.52, the valuation of WMB can be described as expensive.
  • WMB's Price/Earnings ratio is a bit more expensive when compared to the industry. WMB is more expensive than 61.24% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.61. WMB is valued slightly more expensive when compared to this.
  • With a Price/Forward Earnings ratio of 31.70, WMB can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WMB.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, WMB is valued a bit more expensive.
Industry RankSector Rank
PE 32.52
Fwd PE 31.7
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

  • 65.07% of the companies in the same industry are cheaper than WMB, based on the Enterprise Value to EBITDA ratio.
  • 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 RankSector Rank
P/FCF 100.29
EV/EBITDA 17.7
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 12.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)12.71
PEG (5Y)1.5
EPS Next 2Y8.48%
EPS Next 3Y12.85%

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 3.25%. Purely for dividend investing, there may be better candidates out there.
  • WMB's Dividend Yield is a higher than the industry average which is at 3.29.
  • WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.25%

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.
  • 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 Years7
Div Non Decr Years7
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.
  • WMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP93.38%
EPS Next 2Y8.48%
EPS Next 3Y12.85%
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 (3/25/2026, 8:04:00 PM)

After market: 73.8257 +0.02 (+0.02%)

73.81

-0.65 (-0.87%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners88.8%
Inst Owner Change0.47%
Ins Owners0.44%
Ins Owner Change0.97%
Market Cap90.16B
Revenue(TTM)11.95B
Net Income(TTM)2.62B
Analysts78.62
Price Target77.12 (4.48%)
Short Float %1.18%
Short Ratio1.89
Dividend
Industry RankSector Rank
Dividend Yield 3.25%
Yearly Dividend2
Dividend Growth(5Y)4.56%
DP93.38%
Div Incr Years7
Div Non Decr Years7
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)9.06%
PT rev (3m)10.58%
EPS NQ rev (1m)4.43%
EPS NQ rev (3m)-0.2%
EPS NY rev (1m)0.79%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)1.82%
Valuation
Industry RankSector Rank
PE 32.52
Fwd PE 31.7
P/S 7.55
P/FCF 100.29
P/OCF 15.29
P/B 7.04
P/tB 14.92
EV/EBITDA 17.7
EPS(TTM)2.27
EY3.08%
EPS(NY)2.33
Fwd EY3.15%
FCF(TTM)0.74
FCFY1%
OCF(TTM)4.83
OCFY6.54%
SpS9.78
BVpS10.48
TBVpS4.95
PEG (NY)12.71
PEG (5Y)1.5
Graham Number23.14
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 1.29
F-Score7
WACC7.8%
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 Y2.56%
EPS Next 2Y8.48%
EPS Next 3Y12.85%
EPS Next 5Y15.96%
Revenue 1Y (TTM)13.78%
Revenue growth 3Y2.91%
Revenue growth 5Y9.13%
Sales Q2Q%16.59%
Revenue Next Year5.8%
Revenue Next 2Y7.78%
Revenue Next 3Y9.19%
Revenue Next 5Y14.41%
EBIT growth 1Y32.01%
EBIT growth 3Y13.38%
EBIT growth 5Y11.4%
EBIT Next Year85.52%
EBIT Next 3Y32.78%
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 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 2.56% in the next year.


Is the dividend of WILLIAMS COS INC sustainable?

The dividend rating of WILLIAMS COS INC (WMB) is 6 / 10 and the dividend payout ratio is 93.38%.