WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
61.55 USD
+1.26 (+2.09%)
61.933 USD
+0.38 (+0.62%)
WMB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While WMB belongs to the best of the industry regarding profitability, 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.
- 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
- Looking at the Return On Assets, with a value of 4.25%, WMB is in the better half of the industry, outperforming 60.39% of the companies in the same industry.
- WMB's Return On Equity of 18.91% is amongst the best of the industry. WMB outperforms 86.47% of its industry peers.
- WMB has a Return On Invested Capital of 6.06%. This is comparable 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.
- With an excellent Operating Margin value of 34.18%, WMB belongs to the best of the industry, outperforming 81.64% of the companies in the same industry.
- In the last couple of years the Operating Margin of WMB has grown nicely.
- WMB's Gross Margin of 80.62% is amongst the best of the industry. WMB outperforms 90.34% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WMB is destroying value.
- The number of shares outstanding for WMB remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, WMB has more shares outstanding
- The debt/assets ratio for WMB has been reduced compared to a year ago.
2.2 Solvency
- WMB has an Altman-Z score of 1.11. This is a bad value and indicates that WMB is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of WMB (1.11) 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.
- 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 | 1.11 |
ROIC/WACC0.76
WACC8.01%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that WMB may have some problems paying 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
- 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.
- 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
- The Earnings Per Share is expected to grow by 14.60% 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 8.33% yearly.
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.
- 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 31.56, WMB can be considered very expensive at the moment.
- 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 27.38. WMB is around the same levels.
- Based on the Price/Forward Earnings ratio of 26.06, the valuation of WMB can be described as expensive.
- WMB's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. WMB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.56 | ||
| Fwd PE | 26.06 |
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 67.63% of the companies 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.65 | ||
| EV/EBITDA | 16.47 |
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.
- The excellent profitability rating of WMB may justify a higher PE ratio.
- WMB's earnings are expected to grow with 15.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)2.39
EPS Next 2Y13.92%
EPS Next 3Y15.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.36%, WMB has a reasonable but not impressive dividend return.
- WMB's Dividend Yield is comparable with the industry average which is at 3.75.
- Compared to an average S&P500 Dividend Yield of 1.85, WMB pays a better dividend.
| 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 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
- 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 2Y13.92%
EPS Next 3Y15.11%
61.55
+1.26 (+2.09%)
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 Cap75.17B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts78.62
Price Target69.89 (13.55%)
Short Float %1.3%
Short Ratio2.16
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 | 31.56 | ||
| Fwd PE | 26.06 | ||
| P/S | 6.54 | ||
| P/FCF | 43.65 | ||
| P/OCF | 13.57 | ||
| P/B | 6 | ||
| P/tB | 13.63 | ||
| EV/EBITDA | 16.47 |
EPS(TTM)1.95
EY3.17%
EPS(NY)2.36
Fwd EY3.84%
FCF(TTM)1.41
FCFY2.29%
OCF(TTM)4.54
OCFY7.37%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.84
PEG (5Y)2.39
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 | 1.11 |
F-Score5
WACC8.01%
ROIC/WACC0.76
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%.