WILLIAMS COS INC (WMB) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:WMB • US9694571004

66.92 USD
-0.5 (-0.74%)
At close: Feb 6, 2026
67 USD
+0.08 (+0.12%)
After Hours: 2/6/2026, 8:11:37 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, WMB scores 4 out of 10 in our fundamental rating. WMB was compared to 206 industry peers in the Oil, Gas & Consumable Fuels industry. WMB has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, WMB is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

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.
  • In the past 5 years WMB has always been profitable.
  • WMB had a positive operating cash flow in each of the past 5 years.
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 0 2B 4B

1.2 Ratios

  • With a Return On Assets value of 4.25%, WMB perfoms like the industry average, outperforming 59.42% of the companies in the same industry.
  • WMB has a better Return On Equity (18.91%) than 86.47% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.06%, WMB is in line with its industry, outperforming 54.11% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for WMB is significantly below the industry average of 22.02%.
  • 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 RankSector 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%
WMB Yearly ROA, ROE, ROICWMB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

  • The Profit Margin of WMB (20.59%) is better than 75.85% of its industry peers.
  • In the last couple of years the Profit Margin of WMB has grown nicely.
  • WMB has a better Operating Margin (34.18%) than 81.64% of its industry peers.
  • WMB's Operating Margin has improved in the last couple of years.
  • WMB's Gross Margin of 80.62% is amongst the best of the industry. WMB outperforms 90.34% of its industry peers.
  • WMB's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
WMB Yearly Profit, Operating, Gross MarginsWMB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

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.
  • Compared to 1 year ago, WMB has about the same amount of shares outstanding.
  • WMB has more shares outstanding than it did 5 years ago.
  • WMB has a better debt/assets ratio than last year.
WMB Yearly Shares OutstandingWMB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 10B 20B 30B 40B 50B

2.2 Solvency

  • WMB has an Altman-Z score of 1.20. 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 (1.20) 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.
  • A Debt/Equity ratio of 2.06 is on the high side and indicates that WMB has dependencies on debt financing.
  • WMB has a Debt to Equity ratio of 2.06. This is in the lower half of the industry: WMB underperforms 79.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.06
Debt/FCF 16.25
Altman-Z 1.2
ROIC/WACC0.76
WACC7.96%
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 5B 10B 15B 20B

2.3 Liquidity

  • A Current Ratio of 0.42 indicates that WMB may have some problems paying its short term obligations.
  • With a Current ratio value of 0.42, WMB is not doing good in the industry: 87.92% of the companies in the same industry are doing better.
  • 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 87.92% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.36
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 1B 2B 3B 4B 5B

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

6

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.63% over the past year.
  • Measured over the past years, WMB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.18% on average per year.
  • WMB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.02%.
  • The Revenue has been growing slightly by 5.07% on average over the past years.
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 14.60% on average per year.
  • Based on estimates for the next years, WMB will show a quite strong growth in Revenue. The Revenue will grow by 8.33% on average per year.
EPS Next Y17.31%
EPS Next 2Y12.66%
EPS Next 3Y13.55%
EPS Next 5Y14.6%
Revenue Next Year12.9%
Revenue Next 2Y9.09%
Revenue Next 3Y9.73%
Revenue Next 5Y8.33%

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.
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
WMB Yearly EPS VS EstimatesWMB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 1 2 3 4

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2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 34.32, 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 62.80% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.93. WMB is valued slightly more expensive when compared to this.
  • With a Price/Forward Earnings ratio of 28.97, WMB can be considered very expensive at the moment.
  • WMB's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (27.77), we can say WMB is valued inline with the index average.
Industry RankSector Rank
PE 34.32
Fwd PE 28.97
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 68.12% of the companies listed in the same industry.
  • WMB's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 47.46
EV/EBITDA 17.52
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.
  • The decent profitability rating of WMB may justify a higher PE ratio.
  • A more expensive valuation may be justified as WMB's earnings are expected to grow with 13.55% in the coming years.
PEG (NY)1.98
PEG (5Y)2.6
EPS Next 2Y12.66%
EPS Next 3Y13.55%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.25%, WMB has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 3.64, WMB has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, WMB pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.25%

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.
  • 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
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

  • 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 2Y12.66%
EPS Next 3Y13.55%
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 0 1B 2B 3B
WMB Dividend Payout.WMB Dividend Payout, showing the Payout Ratio.WMB Dividend Payout.PayoutRetained Earnings

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WILLIAMS COS INC

NYSE:WMB (2/6/2026, 8:11:37 PM)

After market: 67 +0.08 (+0.12%)

66.92

-0.5 (-0.74%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-03
Earnings (Next)02-23
Inst Owners88.33%
Inst Owner Change-1.02%
Ins Owners0.4%
Ins Owner Change-0.44%
Market Cap81.72B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts78.62
Price Target70.72 (5.68%)
Short Float %1.25%
Short Ratio2.24
Dividend
Industry RankSector Rank
Dividend Yield 3.25%
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP101.86%
Div Incr Years7
Div Non Decr Years7
Ex-Date03-13
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)1.32%
PT rev (3m)3.56%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-0.83%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.2%
Valuation
Industry RankSector Rank
PE 34.32
Fwd PE 28.97
P/S 7.11
P/FCF 47.46
P/OCF 14.75
P/B 6.53
P/tB 14.82
EV/EBITDA 17.52
EPS(TTM)1.95
EY2.91%
EPS(NY)2.31
Fwd EY3.45%
FCF(TTM)1.41
FCFY2.11%
OCF(TTM)4.54
OCFY6.78%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.98
PEG (5Y)2.6
Graham Number21.21
Profitability
Industry RankSector 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 RankSector 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 1.2
F-Score5
WACC7.96%
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 Y17.31%
EPS Next 2Y12.66%
EPS Next 3Y13.55%
EPS Next 5Y14.6%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.9%
Revenue Next 2Y9.09%
Revenue Next 3Y9.73%
Revenue Next 5Y8.33%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.7%
EBIT Next 3Y29.43%
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 4 / 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 7 / 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 17.31% 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%.