WILLIAMS COS INC (WMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WMB - US9694571004 - Common Stock
58.26 USD
-0.4 (-0.68%)
58.25 USD
-0.01 (-0.02%)
We assign a fundamental rating of 5 out of 10 to WMB. WMB was compared to 210 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WMB was profitable.
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.
1.2 Ratios
The Return On Assets of WMB (4.25%) is better than 61.14% of its industry peers.
With an excellent Return On Equity value of 18.91%, WMB belongs to the best of the industry, outperforming 86.73% of the companies in the same industry.
With a Return On Invested Capital value of 6.06%, WMB perfoms like the industry average, outperforming 53.55% of the companies in the same industry.
WMB had an Average Return On Invested Capital over the past 3 years of 5.82%. This is significantly below the industry average of 21.09%.
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 76.78% of the companies in the same industry.
WMB's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 34.18%, WMB belongs to the best of the industry, outperforming 81.04% of the companies in the same industry.
In the last couple of years the Operating Margin of WMB has grown nicely.
WMB has a better Gross Margin (80.62%) than 90.52% 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.
WMB has about the same amout of shares outstanding than it did 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
Based on the Altman-Z score of 1.05, 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 1.05, WMB is in line with its industry, outperforming 47.87% 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 has a Debt to FCF ratio of 16.25. This is comparable to the rest of the industry: WMB outperforms 47.87% 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.
The Debt to Equity ratio of WMB (2.06) is worse than 80.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.06 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.75
WACC8.05%
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 87.20% 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 87.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.36 |
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
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 Y16.95%
EPS Next 2Y14.15%
EPS Next 3Y15.68%
EPS Next 5Y14.6%
Revenue Next Year12.6%
Revenue Next 2Y8.31%
Revenue Next 3Y9.18%
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
WMB is valuated quite expensively with a Price/Earnings ratio of 29.88.
Compared to the rest of the industry, the Price/Earnings ratio of WMB indicates a slightly more expensive valuation: WMB is more expensive than 62.56% of the companies listed in the same industry.
WMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.39.
A Price/Forward Earnings ratio of 24.57 indicates a rather expensive valuation of WMB.
WMB's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WMB to the average of the S&P500 Index (23.84), we can say WMB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.88 | ||
| Fwd PE | 24.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMB is valued a bit more expensive than 67.77% 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 | 41.32 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
WMB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent 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 15.68% in the coming years.
PEG (NY)1.76
PEG (5Y)2.27
EPS Next 2Y14.15%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, WMB has a reasonable but not impressive dividend return.
WMB's Dividend Yield is comparable with the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 1.87, WMB pays a better dividend.
| 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 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
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 2Y14.15%
EPS Next 3Y15.68%
58.26
-0.4 (-0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner Change-1.04%
Ins Owners0.4%
Ins Owner Change0.15%
Market Cap71.15B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts77.24
Price Target69.74 (19.7%)
Short Float %1.07%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.9
Dividend Growth(5Y)4.57%
DP101.86%
Div Incr Years7
Div Non Decr Years7
Ex-Date
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)2.14%
PT rev (3m)8.07%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.62%
EPS NY rev (1m)0.49%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.88 | ||
| Fwd PE | 24.57 | ||
| P/S | 6.19 | ||
| P/FCF | 41.32 | ||
| P/OCF | 12.84 | ||
| P/B | 5.68 | ||
| P/tB | 12.9 | ||
| EV/EBITDA | 15.83 |
EPS(TTM)1.95
EY3.35%
EPS(NY)2.37
Fwd EY4.07%
FCF(TTM)1.41
FCFY2.42%
OCF(TTM)4.54
OCFY7.79%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)1.76
PEG (5Y)2.27
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 | 1.05 |
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 Y16.95%
EPS Next 2Y14.15%
EPS Next 3Y15.68%
EPS Next 5Y14.6%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y-0.39%
Revenue growth 5Y5.07%
Sales Q2Q%10.18%
Revenue Next Year12.6%
Revenue Next 2Y8.31%
Revenue Next 3Y9.18%
Revenue Next 5Y8.33%
EBIT growth 1Y7.97%
EBIT growth 3Y8.18%
EBIT growth 5Y6.95%
EBIT Next Year82.65%
EBIT Next 3Y29.8%
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.
What is the valuation status of WILLIAMS COS INC (WMB) stock?
ChartMill assigns a valuation rating of 3 / 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 valuation of WILLIAMS COS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WILLIAMS COS INC (WMB) is 29.88 and the Price/Book (PB) ratio is 5.68.
How sustainable is the dividend of WILLIAMS COS INC (WMB) stock?
The dividend rating of WILLIAMS COS INC (WMB) is 5 / 10 and the dividend payout ratio is 101.86%.