WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
60.29 USD
-0.42 (-0.69%)
60.29 USD
0 (0%)
Taking everything into account, WMB scores 5 out of 10 in our fundamental rating. WMB was compared to 208 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
- In the past year WMB was profitable.
- WMB had a positive operating cash flow in the past year.
- WMB had positive earnings in each of the past 5 years.
- 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 60.58% of the companies in the same industry.
- The Return On Equity of WMB (18.91%) is better than 86.54% of its industry peers.
- WMB's Return On Invested Capital of 6.06% is in line compared to the rest of the industry. WMB outperforms 54.33% 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 21.83%.
- 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
- Looking at the Profit Margin, with a value of 20.59%, WMB is in the better half of the industry, outperforming 76.44% of the companies in the same industry.
- In the last couple of years the Profit Margin of WMB has grown nicely.
- The Operating Margin of WMB (34.18%) is better than 81.25% 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 90.38% 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.
- 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
- Based on the Altman-Z score of 1.09, we must say that WMB is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.09, WMB is in line with its industry, outperforming 48.08% of the companies in the same 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.
- WMB's Debt to FCF ratio of 16.25 is in line compared to the rest of the industry. WMB outperforms 47.60% of its industry peers.
- WMB has a Debt/Equity ratio of 2.06. This is a high value indicating a heavy dependency on external 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 79.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.77
WACC7.87%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that WMB may have some problems paying its short term obligations.
- WMB's Current ratio of 0.42 is on the low side compared to the rest of the industry. WMB is outperformed by 87.02% of its industry peers.
- 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: 87.02% of the companies in the same industry are doing better.
| 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.
- Looking at the last year, WMB shows a quite strong growth in Revenue. The Revenue has grown by 9.02% in the last year.
- 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
- The Earnings Per Share is expected to grow by 14.60% on average over the next years. This is quite good.
- 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 Y17.13%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
EPS Next 5Y14.6%
Revenue Next Year12.86%
Revenue Next 2Y9.29%
Revenue Next 3Y9.91%
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
- The Price/Earnings ratio is 30.92, which means the current valuation is very expensive for WMB.
- 62.98% of the companies in the same industry are cheaper than WMB, based on the Price/Earnings ratio.
- WMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
- Based on the Price/Forward Earnings ratio of 25.53, the valuation of WMB can be described as expensive.
- WMB's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. WMB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.92 | ||
| Fwd PE | 25.53 |
4.2 Price Multiples
- 67.31% of the companies in the same industry are cheaper than WMB, based on the Enterprise Value to EBITDA ratio.
- WMB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.76 | ||
| EV/EBITDA | 16.31 |
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.
- WMB has an outstanding profitability rating, which 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)1.8
PEG (5Y)2.35
EPS Next 2Y13.92%
EPS Next 3Y15.11%
5. Dividend
5.1 Amount
- WMB has a Yearly Dividend Yield of 3.31%.
- WMB's Dividend Yield is comparable with the industry average which is at 3.91.
- Compared to an average S&P500 Dividend Yield of 1.92, WMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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.
- WMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.86%
EPS Next 2Y13.92%
EPS Next 3Y15.11%
60.29
-0.42 (-0.69%)
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 Change0.5%
Ins Owners0.4%
Ins Owner Change0.06%
Market Cap73.63B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts78.62
Price Target69.79 (15.76%)
Short Float %1.3%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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)0.07%
PT rev (3m)7.9%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.92 | ||
| Fwd PE | 25.53 | ||
| P/S | 6.41 | ||
| P/FCF | 42.76 | ||
| P/OCF | 13.29 | ||
| P/B | 5.88 | ||
| P/tB | 13.35 | ||
| EV/EBITDA | 16.31 |
EPS(TTM)1.95
EY3.23%
EPS(NY)2.36
Fwd EY3.92%
FCF(TTM)1.41
FCFY2.34%
OCF(TTM)4.54
OCFY7.52%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.8
PEG (5Y)2.35
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 | 1.09 |
F-Score5
WACC7.87%
ROIC/WACC0.77
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 Year12.86%
Revenue Next 2Y9.29%
Revenue Next 3Y9.91%
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%.