WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
63.18 USD
+1.67 (+2.72%)
63.15 USD
-0.03 (-0.05%)
Overall WMB gets a fundamental rating of 5 out of 10. We evaluated WMB against 207 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. 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.
- In the past year WMB had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 4.25%, WMB is doing good in the industry, outperforming 60.39% of the companies in the same industry.
- With an excellent Return On Equity value of 18.91%, WMB belongs to the best of the industry, outperforming 86.47% of the companies in the same industry.
- WMB has a Return On Invested Capital (6.06%) which is comparable to the rest of the industry.
- 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 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's Profit Margin of 20.59% is fine compared to the rest of the industry. WMB outperforms 76.33% of its industry peers.
- In the last couple of years the Profit Margin of WMB has grown nicely.
- The Operating Margin of WMB (34.18%) is better than 81.64% of its industry peers.
- In the last couple of years the Operating Margin of WMB has grown nicely.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WMB is destroying value.
- WMB has about the same amout of shares outstanding than it did 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
- Based on the Altman-Z score of 1.10, we must say that WMB is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of WMB (1.10) is comparable to the rest of the industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 16.25, WMB is in line with its industry, outperforming 47.34% of the companies in the same industry.
- WMB has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external financing.
- WMB has a worse Debt to Equity ratio (2.06) than 79.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.1 |
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.
- WMB has a worse Current ratio (0.42) than 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's Quick ratio of 0.36 is on the low side compared to the rest of the industry. WMB is outperformed by 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.
- 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
- 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.
- The Revenue is expected to grow by 8.33% on average over the next years. This is quite good.
EPS Next Y17.13%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
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
- With a Price/Earnings ratio of 32.40, WMB can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of WMB indicates a slightly more expensive valuation: WMB is more expensive than 62.32% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of WMB to the average of the S&P500 Index (26.94), we can say WMB is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 26.75, the valuation of WMB can be described as expensive.
- WMB's Price/Forward Earnings is on the same level as the industry average.
- WMB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.4 | ||
| Fwd PE | 26.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than 68.12% 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 | 44.81 | ||
| EV/EBITDA | 16.46 |
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 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 15.11% in the coming years.
PEG (NY)1.89
PEG (5Y)2.46
EPS Next 2Y13.92%
EPS Next 3Y15.11%
5. Dividend
5.1 Amount
- WMB has a Yearly Dividend Yield of 3.36%.
- Compared to an average industry Dividend Yield of 3.75, 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 | 3.36% |
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.
- The dividend of WMB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.86%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
63.18
+1.67 (+2.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners88.33%
Inst Owner Change0.51%
Ins Owners0.4%
Ins Owner Change0.06%
Market Cap77.16B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts78.62
Price Target69.89 (10.62%)
Short Float %1.28%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP101.86%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
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)0.21%
PT rev (3m)8.05%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-2.14%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.4 | ||
| Fwd PE | 26.75 | ||
| P/S | 6.71 | ||
| P/FCF | 44.81 | ||
| P/OCF | 13.93 | ||
| P/B | 6.16 | ||
| P/tB | 13.99 | ||
| EV/EBITDA | 16.46 |
EPS(TTM)1.95
EY3.09%
EPS(NY)2.36
Fwd EY3.74%
FCF(TTM)1.41
FCFY2.23%
OCF(TTM)4.54
OCFY7.18%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.89
PEG (5Y)2.46
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 | 1.1 |
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 Y17.13%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
EPS Next 5Y14.6%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.79%
Revenue Next 2Y8.97%
Revenue Next 3Y9.64%
Revenue Next 5Y8.33%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.63%
EBIT Next 3Y29.78%
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.
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 17.13% 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%.