WILLIAMS COS INC (WMB) Fundamental Analysis & Valuation

NYSE:WMB • US9694571004

Current stock price

69.96 USD
-0.95 (-1.34%)
Last:

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

  • In the past year WMB was profitable.
  • In the past year WMB had a positive cash flow from operations.
  • WMB had positive earnings in each of the past 5 years.
  • In the past 5 years WMB always reported a positive cash flow from operatings.
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's Return On Assets of 4.46% is in line compared to the rest of the industry. WMB outperforms 59.81% of its industry peers.
  • The Return On Equity of WMB (20.42%) is better than 85.17% of its industry peers.
  • WMB has a Return On Invested Capital of 6.42%. This is in the better half 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 22.74%.
  • 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

  • Looking at the Profit Margin, with a value of 21.88%, WMB is in the better half of the industry, outperforming 78.95% 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 36.90%, WMB belongs to the best of the industry, outperforming 85.17% of the companies in the same industry.
  • In the last couple of years the Operating Margin of WMB has grown nicely.
  • Looking at the Gross Margin, with a value of 81.60%, WMB belongs to the top of the industry, outperforming 91.87% of the companies in the same industry.
  • WMB's Gross Margin has been stable in the last couple of years.
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

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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
  • Compared to 1 year ago, WMB has a worse debt to assets ratio.
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

  • WMB has an Altman-Z score of 1.24. 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 (1.24) which is in line with 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 has a Debt to FCF ratio (32.66) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 2.19 is on the high side and indicates that WMB has dependencies on debt financing.
  • WMB has a worse Debt to Equity ratio (2.19) than 80.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.19
Debt/FCF 32.66
Altman-Z 1.24
ROIC/WACC0.84
WACC7.67%
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

  • A Current Ratio of 0.53 indicates that WMB may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.53, WMB is doing worse than 84.21% of the companies in the same industry.
  • 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.
  • WMB's Quick ratio of 0.48 is on the low side compared to the rest of the industry. WMB is outperformed by 83.25% of its industry peers.
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. WMB Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 24.73% over the past year.
  • The Earnings Per Share has been growing by 21.71% on average over the past years. This is a very strong growth
  • Looking at the last year, WMB shows a quite strong growth in Revenue. The Revenue has grown by 13.78% in the last year.
  • Measured over the past years, WMB shows a quite strong growth in Revenue. The Revenue has been growing by 9.13% on average per year.
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

  • The Earnings Per Share is expected to grow by 15.96% on average over the next years. This is quite good.
  • WMB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.41% yearly.
EPS Next Y2.64%
EPS Next 2Y7.71%
EPS Next 3Y12.17%
EPS Next 5Y15.96%
Revenue Next Year5.9%
Revenue Next 2Y7.86%
Revenue Next 3Y9.55%
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

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3

4. WMB Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 30.82, which means the current valuation is very expensive for WMB.
  • Based on the Price/Earnings ratio, WMB is valued a bit more expensive than the industry average as 62.20% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Earnings ratio of 27.95, WMB is valued at the same level.
  • With a Price/Forward Earnings ratio of 30.03, WMB can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WMB.
  • WMB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 38.68.
Industry RankSector Rank
PE 30.82
Fwd PE 30.03
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WMB indicates a slightly more expensive valuation: WMB is more expensive than 64.59% of the companies listed 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 RankSector Rank
P/FCF 95.16
EV/EBITDA 17.07
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 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.
  • A more expensive valuation may be justified as WMB's earnings are expected to grow with 12.17% in the coming years.
PEG (NY)11.67
PEG (5Y)1.42
EPS Next 2Y7.71%
EPS Next 3Y12.17%

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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 2.97%.
  • Compared to an average industry Dividend Yield of 3.26, WMB pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, WMB pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.97%

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.
  • As WMB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.56%
Div Incr Years8
Div Non Decr Years8
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 2Y7.71%
EPS Next 3Y12.17%
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

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WMB Fundamentals: All Metrics, Ratios and Statistics

WILLIAMS COS INC

NYSE:WMB (4/21/2026, 11:53:09 AM)

69.96

-0.95 (-1.34%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-10
Earnings (Next)05-04
Inst Owners88.75%
Inst Owner Change-0.29%
Ins Owners0.19%
Ins Owner Change0.93%
Market Cap85.55B
Revenue(TTM)11.95B
Net Income(TTM)2.62B
Analysts78.67
Price Target80.81 (15.51%)
Short Float %1.33%
Short Ratio2.23
Dividend
Industry RankSector Rank
Dividend Yield 2.97%
Yearly Dividend2
Dividend Growth(5Y)4.56%
DP93.38%
Div Incr Years8
Div Non Decr Years8
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)4.78%
PT rev (3m)15.62%
EPS NQ rev (1m)3.48%
EPS NQ rev (3m)6.11%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE 30.82
Fwd PE 30.03
P/S 7.16
P/FCF 95.16
P/OCF 14.51
P/B 6.68
P/tB 14.15
EV/EBITDA 17.07
EPS(TTM)2.27
EY3.24%
EPS(NY)2.33
Fwd EY3.33%
FCF(TTM)0.74
FCFY1.05%
OCF(TTM)4.82
OCFY6.89%
SpS9.77
BVpS10.47
TBVpS4.94
PEG (NY)11.67
PEG (5Y)1.42
Graham Number23.1281 (-66.94%)
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 1.24
F-Score7
WACC7.67%
ROIC/WACC0.84
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 Y2.64%
EPS Next 2Y7.71%
EPS Next 3Y12.17%
EPS Next 5Y15.96%
Revenue 1Y (TTM)13.78%
Revenue growth 3Y2.91%
Revenue growth 5Y9.13%
Sales Q2Q%16.59%
Revenue Next Year5.9%
Revenue Next 2Y7.86%
Revenue Next 3Y9.55%
Revenue Next 5Y14.41%
EBIT growth 1Y32.01%
EBIT growth 3Y13.38%
EBIT growth 5Y11.4%
EBIT Next Year86.37%
EBIT Next 3Y33.03%
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 3 / 10 to WILLIAMS COS INC (WMB). This can be considered as Overvalued.


Can you provide the profitability details for WILLIAMS COS INC?

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 30.82 and the Price/Book (PB) ratio is 6.68.


Can you provide the financial health for WMB stock?

The financial health rating of WILLIAMS COS INC (WMB) is 1 / 10.