WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - NYSE:WMB - US9694571004 - Common Stock
59.02 USD
+1.07 (+1.85%)
59.02 USD
0 (0%)
WMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. WMB scores excellent on profitability, 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
WMB had positive earnings in the past year.
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 Return On Assets of 4.32%. This is comparable to the rest of the industry: WMB outperforms 58.57% of its industry peers.
WMB has a Return On Equity of 19.50%. This is amongst the best in the industry. WMB outperforms 84.29% of its industry peers.
WMB has a Return On Invested Capital of 5.68%. This is comparable to the rest of the industry: WMB outperforms 49.52% 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 21.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 19.5% | ||
| ROIC | 5.68% |
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
With a decent Profit Margin value of 21.61%, WMB is doing good in the industry, outperforming 75.71% of the companies in the same industry.
In the last couple of years the Profit Margin of WMB has grown nicely.
Looking at the Operating Margin, with a value of 32.59%, WMB is in the better half of the industry, outperforming 79.52% of the companies in the same industry.
In the last couple of years the Operating Margin of WMB has grown nicely.
The Gross Margin of WMB (79.80%) is better than 90.00% of its industry peers.
WMB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.59% | ||
| PM (TTM) | 21.61% | ||
| GM | 79.8% |
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.
Compared to 5 years ago, WMB has more shares outstanding
Compared to 1 year ago, WMB has an improved debt to assets ratio.
2.2 Solvency
WMB has an Altman-Z score of 1.02. 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 (1.02) is comparable to the rest of the industry.
WMB has a debt to FCF ratio of 15.94. This is a negative value and a sign of low solvency as WMB would need 15.94 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.94, WMB perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
A Debt/Equity ratio of 2.06 is on the high side and indicates that WMB has dependencies on debt financing.
WMB's Debt to Equity ratio of 2.06 is on the low side compared to the rest of the industry. WMB is outperformed by 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 15.94 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.71
WACC8.06%
2.3 Liquidity
A Current Ratio of 0.54 indicates that WMB may have some problems paying its short term obligations.
WMB has a worse Current ratio (0.54) than 86.19% of its industry peers.
WMB has a Quick Ratio of 0.54. This is a bad value and indicates that WMB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.48, WMB is not doing good in the industry: 85.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for WMB have decreased by -8.08% in the last year.
The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.42% in the past year.
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)-8.08%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%4.65%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%12.82%
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 13.64% on average per year.
The Revenue is expected to grow by 10.70% on average over the next years. This is quite good.
EPS Next Y16.82%
EPS Next 2Y15.43%
EPS Next 3Y14.54%
EPS Next 5Y13.64%
Revenue Next Year12.31%
Revenue Next 2Y9.7%
Revenue Next 3Y9.35%
Revenue Next 5Y10.7%
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.
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
The Price/Earnings ratio is 32.43, 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 60.95% of the companies are valued more cheaply.
WMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 24.34, which indicates a rather expensive current valuation of WMB.
Based on the Price/Forward Earnings ratio, WMB is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (22.70), we can say WMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.43 | ||
| Fwd PE | 24.34 |
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 66.67% of the companies listed in the same industry.
WMB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.22 | ||
| 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 a very decent 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 14.54% in the coming years.
PEG (NY)1.93
PEG (5Y)2.46
EPS Next 2Y15.43%
EPS Next 3Y14.54%
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 6.18.
Compared to an average S&P500 Dividend Yield of 2.38, 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 been paying a dividend for at least 10 years, so it has 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 98.06% of its income as dividend. This is not a sustainable payout ratio.
WMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.06%
EPS Next 2Y15.43%
EPS Next 3Y14.54%
59.02
+1.07 (+1.85%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.85%
Inst Owner Change-0.72%
Ins Owners0.4%
Ins Owner Change0.34%
Market Cap72.07B
Analysts76.3
Price Target64.54 (9.35%)
Short Float %1.02%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP98.06%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.07%
Min EPS beat(2)-6.28%
Max EPS beat(2)0.14%
EPS beat(4)1
Avg EPS beat(4)-6.19%
Min EPS beat(4)-13.58%
Max EPS beat(4)0.14%
EPS beat(8)5
Avg EPS beat(8)3.2%
EPS beat(12)9
Avg EPS beat(12)10.64%
EPS beat(16)12
Avg EPS beat(16)10.2%
Revenue beat(2)2
Avg Revenue beat(2)1.69%
Min Revenue beat(2)0.8%
Max Revenue beat(2)2.59%
Revenue beat(4)4
Avg Revenue beat(4)2.18%
Min Revenue beat(4)0.8%
Max Revenue beat(4)4.08%
Revenue beat(8)6
Avg Revenue beat(8)0.23%
Revenue beat(12)8
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)3.41%
PT rev (1m)0.8%
PT rev (3m)3.45%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)1.66%
Revenue NQ rev (3m)-5.57%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.43 | ||
| Fwd PE | 24.34 | ||
| P/S | 6.42 | ||
| P/FCF | 40.22 | ||
| P/OCF | 13.49 | ||
| P/B | 5.79 | ||
| P/tB | 13.5 | ||
| EV/EBITDA | 16.46 |
EPS(TTM)1.82
EY3.08%
EPS(NY)2.42
Fwd EY4.11%
FCF(TTM)1.47
FCFY2.49%
OCF(TTM)4.38
OCFY7.41%
SpS9.19
BVpS10.19
TBVpS4.37
PEG (NY)1.93
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 19.5% | ||
| ROCE | 7.3% | ||
| ROIC | 5.68% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 6.76% | ||
| OM | 32.59% | ||
| PM (TTM) | 21.61% | ||
| GM | 79.8% | ||
| FCFM | 15.96% |
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%
ROICexcg growth 3Y0.06%
ROICexcg 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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 15.94 | ||
| Debt/EBITDA | 4.28 | ||
| Cap/Depr | 153.04% | ||
| Cap/Sales | 31.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.38% | ||
| Profit Quality | 73.87% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.02 |
F-Score6
WACC8.06%
ROIC/WACC0.71
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)-8.08%
EPS 3Y10.47%
EPS 5Y13.18%
EPS Q2Q%4.65%
EPS Next Y16.82%
EPS Next 2Y15.43%
EPS Next 3Y14.54%
EPS Next 5Y13.64%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%12.82%
Revenue Next Year12.31%
Revenue Next 2Y9.7%
Revenue Next 3Y9.35%
Revenue Next 5Y10.7%
EBIT growth 1Y-0.25%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.49%
EBIT Next 3Y28.45%
EBIT Next 5Y20.09%
FCF growth 1Y-35.03%
FCF growth 3Y-5.24%
FCF growth 5Y8.26%
OCF growth 1Y-4.57%
OCF growth 3Y8.03%
OCF growth 5Y6.14%