WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
59.37 USD
-0.06 (-0.1%)
59.5 USD
+0.13 (+0.22%)
Overall WMB gets a fundamental rating of 4 out of 10. We evaluated WMB against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While WMB has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, WMB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WMB was profitable.
WMB had a positive operating cash flow in the past year.
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's Return On Assets of 4.25% is in line compared to the rest of the industry. WMB outperforms 59.52% of its industry peers.
With an excellent Return On Equity value of 18.91%, WMB belongs to the best of the industry, outperforming 85.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.06%, WMB is in line with its industry, outperforming 53.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WMB is significantly below the industry average of 21.41%.
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 75.71% of its industry peers.
WMB's Profit Margin has improved in the last couple of years.
WMB has a Operating Margin of 34.18%. This is amongst the best in the industry. WMB outperforms 80.48% 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 90.95% 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
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.
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 1.07. This is a bad value and indicates that WMB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.07, WMB is in line with its industry, outperforming 47.62% of the companies in the same 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.
WMB has a Debt to FCF ratio (16.25) which is in line with its industry peers.
WMB has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WMB (2.06) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.75
WACC8.04%
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 89.52% of its industry peers.
A Quick Ratio of 0.36 indicates that WMB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.36, WMB is doing worse than 89.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
WMB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.63%.
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.
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
Based on estimates for the next years, WMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.74% on average per year.
The Revenue is expected to grow by 9.85% on average over the next years. This is quite good.
EPS Next Y16.39%
EPS Next 2Y15.2%
EPS Next 3Y15.28%
EPS Next 5Y14.74%
Revenue Next Year12.67%
Revenue Next 2Y9.92%
Revenue Next 3Y10.34%
Revenue Next 5Y9.85%
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.
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 30.45.
62.86% of the companies in the same industry are cheaper than WMB, based on the Price/Earnings ratio.
WMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
WMB is valuated rather expensively with a Price/Forward Earnings ratio of 24.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMB indicates a slightly more expensive valuation: WMB is more expensive than 60.48% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.79. WMB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.45 | ||
| Fwd PE | 24.58 |
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 68.10% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WMB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.1 | ||
| EV/EBITDA | 16.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WMB has a very decent profitability rating, which may justify a higher PE ratio.
WMB's earnings are expected to grow with 15.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)2.31
EPS Next 2Y15.2%
EPS Next 3Y15.28%
5. Dividend
5.1 Amount
WMB has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
WMB's Dividend Yield is comparable with the industry average which is at 5.88.
Compared to an average S&P500 Dividend Yield of 2.41, WMB pays a bit more dividend than the S&P500 average.
| 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 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.
The dividend of WMB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.86%
EPS Next 2Y15.2%
EPS Next 3Y15.28%
59.37
-0.06 (-0.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.64%
Inst Owner Change-1.11%
Ins Owners0.4%
Ins Owner Change0.15%
Market Cap72.50B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts77.24
Price Target68.54 (15.45%)
Short Float %1.12%
Short Ratio1.86
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)5.96%
PT rev (3m)6.2%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.45 | ||
| Fwd PE | 24.58 | ||
| P/S | 6.31 | ||
| P/FCF | 42.1 | ||
| P/OCF | 13.09 | ||
| P/B | 5.79 | ||
| P/tB | 13.14 | ||
| EV/EBITDA | 16.06 |
EPS(TTM)1.95
EY3.28%
EPS(NY)2.42
Fwd EY4.07%
FCF(TTM)1.41
FCFY2.38%
OCF(TTM)4.54
OCFY7.64%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.86
PEG (5Y)2.31
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 | 1.07 |
F-Score5
WACC8.04%
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 Y16.39%
EPS Next 2Y15.2%
EPS Next 3Y15.28%
EPS Next 5Y14.74%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.67%
Revenue Next 2Y9.92%
Revenue Next 3Y10.34%
Revenue Next 5Y9.85%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.74%
EBIT Next 3Y28.55%
EBIT Next 5Y20.48%
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.
What is the valuation status of WILLIAMS COS INC (WMB) stock?
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 valuation of WILLIAMS COS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WILLIAMS COS INC (WMB) is 30.45 and the Price/Book (PB) ratio is 5.79.
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%.