WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:WMB • US9694571004
66.34 USD
-0.92 (-1.37%)
At close: Feb 2, 2026
66.42 USD
+0.08 (+0.12%)
After Hours: 2/2/2026, 5:28:24 PM
We assign a fundamental rating of 5 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. WMB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WMB was profitable.
- WMB had a positive operating cash flow in the past year.
- Each year in the past 5 years WMB has been profitable.
- Each year in the past 5 years WMB had a positive operating cash flow.
1.2 Ratios
- WMB has a better Return On Assets (4.25%) than 60.39% of its industry peers.
- The Return On Equity of WMB (18.91%) is better than 86.47% of its industry peers.
- WMB's Return On Invested Capital of 6.06% is in line compared to the rest of the industry. WMB outperforms 54.11% of its industry peers.
- WMB had an Average Return On Invested Capital over the past 3 years of 5.82%. This is significantly below the industry average of 21.94%.
- 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
- The Profit Margin of WMB (20.59%) is better than 76.33% of its industry peers.
- In the last couple of years the Profit Margin of WMB has grown nicely.
- Looking at the Operating Margin, with a value of 34.18%, WMB belongs to the top of the industry, outperforming 81.64% of the companies in the same industry.
- WMB's Operating Margin has improved in the last couple of years.
- WMB has a Gross Margin of 80.62%. This is amongst the best in the industry. WMB outperforms 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
- WMB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for WMB remains at a similar level compared to 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
- WMB has an Altman-Z score of 1.20. 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 1.20. This is comparable to the rest of the industry: WMB outperforms 46.86% 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's Debt to FCF ratio of 16.25 is in line compared 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.
- Looking at the Debt to Equity ratio, with a value of 2.06, WMB is doing worse than 79.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.75
WACC8.03%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that WMB may have some problems paying its short term obligations.
- WMB's Current ratio of 0.42 is on the low side compared to the rest of the industry. WMB is outperformed by 87.44% of its industry peers.
- 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.
- WMB has a Quick ratio of 0.36. This is amonst the worse of the industry: WMB underperforms 87.44% 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.
- WMB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.18% yearly.
- WMB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.02%.
- WMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.07% yearly.
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 Y17.19%
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
- The Price/Earnings ratio is 34.02, which means the current valuation is very expensive for WMB.
- 62.32% of the companies in the same industry are cheaper than WMB, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.41. WMB is around the same levels.
- A Price/Forward Earnings ratio of 28.56 indicates a quite expensive valuation of WMB.
- The rest of the industry has a similar Price/Forward Earnings ratio as WMB.
- When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (25.64), we can say WMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.02 | ||
| Fwd PE | 28.56 |
4.2 Price Multiples
- WMB's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WMB is more expensive than 68.60% of the companies in the same industry.
- WMB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.05 | ||
| EV/EBITDA | 17.59 |
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 an outstanding profitability rating, which 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)1.98
PEG (5Y)2.58
EPS Next 2Y12.97%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
- WMB has a Yearly Dividend Yield of 3.25%.
- Compared to an average industry Dividend Yield of 3.64, WMB has a dividend in line with its industry peers.
- WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
- As WMB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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%
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 17.19% 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%.