WILLIAMS COS INC (WMB) Stock Fundamental Analysis

NYSE:WMB • US9694571004

71.71 USD
+0.59 (+0.83%)
Last: Feb 12, 2026, 12:29 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

WMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 206 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 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

  • 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.
  • Each year in the past 5 years WMB had a positive operating cash flow.
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 59.22% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 18.91%, WMB belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 6.06%, WMB is in line with its industry, outperforming 54.85% 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 21.97%.
  • 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 75.73% of its industry peers.
  • 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 81.55% of the companies in the same industry.
  • WMB's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 80.62%, WMB belongs to the top of the industry, outperforming 90.78% of the companies in the same industry.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WMB is destroying value.
  • The number of shares outstanding for WMB remains at a similar level compared to 1 year ago.
  • 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

  • Based on the Altman-Z score of 1.27, we must say that WMB is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of WMB (1.27) 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.
  • The Debt to FCF ratio of WMB (16.25) is comparable to the rest of the industry.
  • 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 79.13% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.06
Debt/FCF 16.25
Altman-Z 1.27
ROIC/WACC0.79
WACC7.62%
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.
  • WMB has a Current ratio of 0.42. This is amonst the worse of the industry: WMB underperforms 87.86% of its industry peers.
  • 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 87.86% 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

  • WMB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.63%.
  • 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%.
  • 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.
  • The Revenue is expected to grow by 8.33% on average over the next years. This is quite good.
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.
  • 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

  • A Price/Earnings ratio of 36.77 indicates a quite expensive valuation of WMB.
  • Based on the Price/Earnings ratio, WMB is valued a bit more expensive than 63.59% of the companies in the same industry.
  • WMB is valuated rather expensively when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 31.05, WMB can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WMB is on the same level as its industry peers.
  • WMB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.01.
Industry RankSector Rank
PE 36.77
Fwd PE 31.05
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

  • 67.96% 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 RankSector Rank
P/FCF 50.86
EV/EBITDA 18.34
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.
  • A more expensive valuation may be justified as WMB's earnings are expected to grow with 13.55% in the coming years.
PEG (NY)2.12
PEG (5Y)2.79
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

  • WMB has a Yearly Dividend Yield of 3.25%.
  • Compared to an average industry Dividend Yield of 3.63, WMB has a dividend in line with its industry peers.
  • WMB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
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.
  • 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

  • 101.86% of the earnings are spent on dividend by WMB. 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 (2/12/2026, 12:29:07 PM)

71.71

+0.59 (+0.83%)

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 Cap87.57B
Revenue(TTM)11.49B
Net Income(TTM)2.37B
Analysts78.62
Price Target70.72 (-1.38%)
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 36.77
Fwd PE 31.05
P/S 7.62
P/FCF 50.86
P/OCF 15.81
P/B 6.99
P/tB 15.88
EV/EBITDA 18.34
EPS(TTM)1.95
EY2.72%
EPS(NY)2.31
Fwd EY3.22%
FCF(TTM)1.41
FCFY1.97%
OCF(TTM)4.54
OCFY6.33%
SpS9.41
BVpS10.25
TBVpS4.52
PEG (NY)2.12
PEG (5Y)2.79
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 1.27
F-Score5
WACC7.62%
ROIC/WACC0.79
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%.