WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
58.92 USD
+0.66 (+1.13%)
58.92 USD
0 (0%)
Overall WMB gets a fundamental rating of 5 out of 10. We evaluated WMB against 210 industry peers in the Oil, Gas & Consumable Fuels industry. WMB scores excellent on profitability, but there are concerns on its financial health. WMB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WMB had positive earnings in the past year.
WMB had a positive operating cash flow in the past year.
Each year in the past 5 years WMB has been profitable.
In the past 5 years WMB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.25%, WMB is in the better half of the industry, outperforming 60.95% of the companies in the same industry.
WMB has a better Return On Equity (18.91%) than 86.67% of its industry peers.
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 21.09%.
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
WMB has a better Profit Margin (20.59%) than 76.67% of its industry peers.
In the last couple of years the Profit Margin of WMB has grown nicely.
WMB has a Operating Margin of 34.18%. This is amongst the best in the industry. WMB outperforms 80.95% of its industry peers.
WMB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.62%, WMB belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, WMB has an improved debt to assets ratio.
2.2 Solvency
WMB has an Altman-Z score of 1.05. 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 (1.05) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 16.25, WMB is in line with its industry, outperforming 48.10% of the companies in the same industry.
A Debt/Equity ratio of 2.06 is on the high side and indicates that WMB has dependencies on debt financing.
WMB has a Debt to Equity ratio of 2.06. This is amonst the worse of the industry: WMB underperforms 80.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.05 |
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.
With a Current ratio value of 0.42, WMB is not doing good in the industry: 87.14% of the companies in the same industry are doing better.
WMB has a Quick 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 Quick ratio of WMB (0.36) is worse than 87.14% 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.
Measured over the past years, WMB shows a small growth in Revenue. The Revenue has been growing by 5.07% on average per year.
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.
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 Y16.95%
EPS Next 2Y14.15%
EPS Next 3Y15.68%
EPS Next 5Y14.6%
Revenue Next Year12.6%
Revenue Next 2Y8.31%
Revenue Next 3Y9.18%
Revenue Next 5Y8.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.22, WMB can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WMB is valued a bit more expensive than 62.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, WMB is valued at the same level.
WMB is valuated rather expensively with a Price/Forward Earnings ratio of 24.84.
The rest of the industry has a similar Price/Forward Earnings ratio as WMB.
WMB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 24.84 |
4.2 Price Multiples
67.62% 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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.79 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
WMB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 15.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.78
PEG (5Y)2.29
EPS Next 2Y14.15%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, WMB has a reasonable but not impressive dividend return.
WMB's Dividend Yield is comparable with the industry average which is at 3.95.
WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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
WMB pays out 101.86% of its income as dividend. 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 2Y14.15%
EPS Next 3Y15.68%
58.92
+0.66 (+1.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner Change-1.04%
Ins Owners0.4%
Ins Owner Change0.15%
Market Cap71.95B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts77.24
Price Target69.74 (18.36%)
Short Float %1.07%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP101.86%
Div Incr Years7
Div Non Decr Years7
Ex-Date
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)2.14%
PT rev (3m)8.07%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0.49%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.22 | ||
| Fwd PE | 24.84 | ||
| P/S | 6.26 | ||
| P/FCF | 41.79 | ||
| P/OCF | 12.99 | ||
| P/B | 5.75 | ||
| P/tB | 13.04 | ||
| EV/EBITDA | 15.83 |
EPS(TTM)1.95
EY3.31%
EPS(NY)2.37
Fwd EY4.03%
FCF(TTM)1.41
FCFY2.39%
OCF(TTM)4.54
OCFY7.7%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.78
PEG (5Y)2.29
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 | 1.05 |
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 Y16.95%
EPS Next 2Y14.15%
EPS Next 3Y15.68%
EPS Next 5Y14.6%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.6%
Revenue Next 2Y8.31%
Revenue Next 3Y9.18%
Revenue Next 5Y8.33%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.65%
EBIT Next 3Y29.8%
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.
What is the valuation status of WILLIAMS COS INC (WMB) stock?
ChartMill assigns a valuation rating of 3 / 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 valuation of WILLIAMS COS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WILLIAMS COS INC (WMB) is 30.22 and the Price/Book (PB) ratio is 5.75.
How sustainable is the dividend of WILLIAMS COS INC (WMB) stock?
The dividend rating of WILLIAMS COS INC (WMB) is 5 / 10 and the dividend payout ratio is 101.86%.