WILLIAMS COS INC (WMB) Stock Fundamental Analysis

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

68.5 USD
+2.16 (+3.26%)
At close: Feb 3, 2026
68.8 USD
+0.3 (+0.44%)
After Hours: 2/3/2026, 8:04:00 PM
Fundamental Rating

4

WMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

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.
  • In the past 5 years WMB always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 4.25%, WMB is in line with its industry, outperforming 59.90% 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 in line with 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 3 year average ROIC (5.82%) for WMB is below the current ROIC(6.06%), indicating increased profibility in the last year.
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

  • WMB has a better Profit Margin (20.59%) than 75.85% 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 81.64% of its industry peers.
  • In the last couple of years the Operating Margin of WMB has grown nicely.
  • WMB has a better Gross Margin (80.62%) than 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 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

More info and screens

1

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WMB 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.
  • Compared to 1 year ago, WMB has an improved debt to assets ratio.
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

  • Based on the Altman-Z score of 1.19, we must say that WMB is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of WMB (1.19) is comparable to the rest of the 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.
  • The Debt to FCF ratio of WMB (16.25) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 2.06 is on the high side and indicates that WMB has dependencies on debt 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 RankSector Rank
Debt/Equity 2.06
Debt/FCF 16.25
Altman-Z 1.19
ROIC/WACC0.75
WACC8.05%
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

  • 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.
  • Looking at the Current ratio, with a value of 0.42, WMB is doing worse than 87.92% of the companies in the same industry.
  • A Quick Ratio of 0.36 indicates that WMB may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.36, WMB is not doing good in the industry: 87.92% of the companies in the same industry are doing better.
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

More info and screens

6

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.
  • 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

  • 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.
  • 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 Y17.19%
EPS Next 2Y12.97%
EPS Next 3Y13.79%
EPS Next 5Y14.6%
Revenue Next Year12.79%
Revenue Next 2Y8.97%
Revenue Next 3Y9.64%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • The Price/Earnings ratio is 35.13, which means the current valuation is very expensive for WMB.
  • WMB's Price/Earnings ratio is a bit more expensive when compared to the industry. WMB is more expensive than 62.32% of the companies in the same industry.
  • WMB's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.18.
  • Based on the Price/Forward Earnings ratio of 29.49, the valuation of WMB can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as WMB.
  • WMB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.51.
Industry RankSector Rank
PE 35.13
Fwd PE 29.49
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

  • Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than the industry average as 68.60% of the companies are valued more cheaply.
  • 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 RankSector Rank
P/FCF 48.58
EV/EBITDA 17.41
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 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 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.04
PEG (5Y)2.67
EPS Next 2Y12.97%
EPS Next 3Y13.79%

More info and screens

5

5. Dividend

5.1 Amount

  • WMB has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
  • WMB's Dividend Yield is comparable with the industry average which is at 3.64.
  • WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
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 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
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

  • 101.86% of the earnings are spent on dividend by WMB. This is not a sustainable payout ratio.
  • WMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.86%
EPS Next 2Y12.97%
EPS Next 3Y13.79%
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

More info and screens

WILLIAMS COS INC

NYSE:WMB (2/3/2026, 8:04:00 PM)

After market: 68.8 +0.3 (+0.44%)

68.5

+2.16 (+3.26%)

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-1.11%
Ins Owners0.4%
Ins Owner Change0.07%
Market Cap83.65B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts78.62
Price Target69.89 (2.03%)
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)0.14%
PT rev (3m)2.35%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 35.13
Fwd PE 29.49
P/S 7.28
P/FCF 48.58
P/OCF 15.1
P/B 6.68
P/tB 15.17
EV/EBITDA 17.41
EPS(TTM)1.95
EY2.85%
EPS(NY)2.32
Fwd EY3.39%
FCF(TTM)1.41
FCFY2.06%
OCF(TTM)4.54
OCFY6.62%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)2.04
PEG (5Y)2.67
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 1.19
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 Y17.19%
EPS Next 2Y12.97%
EPS Next 3Y13.79%
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 Year82.7%
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 17.19% 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%.