WMB Williams Companies
$70.11
▲ 1.3%Updated Oct 16, 2:25 PM ET
Report Card
WMB at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Favorable · 59/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 23.7% in the year to Jul 6, 2026
Key Metrics
Market Cap
$87.42B
P/E
30.72x
Forward P/E (est.)
25.17x
ROE
22.0%
Revenue Growth
10.7%
EPS Growth
22.0%
Profit Margin
23.4%
FCF Yield
5.7%
Debt / Equity
2.29x
ROIC
25.0%
Interest Coverage
3.39x
Current Ratio
0.48x
Dividend Yield
2.8%
Implied Growth (rev. DCF)
7.8%
Rating Score
59/100
Business Overview
Williams Companies (WMB) is a large-cap company in the Oil & Gas Storage & Transportation industry, part of the Energy sector of the S&P 500, with a market value around $87.42B.
In its latest reported year it generated about $11.95B in revenue and $2.62B in net profit.
Our model rates WMB Favorable (59/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (10 years of history).
Profit margins and economic moats, explainedSome durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
35.5% average over the last 3 years
±10.3 pts around 24.0% across 10 years
grew in 5 of the last 9 year-over-year periods
positive in 10 of 10 years
25.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what WMB's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. WMB trades near $70.11, around its 50-day average ($74.05) and 200-day average ($67.39). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 56 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. WMB's is $2.11 (~3.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, WMB found buyers near $70.02 (support) and sellers near $79.00 (resistance); its 52-week range then was $55.82–$80.08. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
3.0%
Revenue moved from $7.50B in 2016 to $11.95B in 2025, a 5.3% compound annual growth rate. The most recent year grew a steady 10.7% year over year. Consistent top-line growth is one sign of healthy demand.
Profitability
Gross Margin
82.3%
Operating Margin
35.1%
Net Margin
21.9%
ROE
22.0%
Williams Companies keeps about 23.4% of each sales dollar as net profit, with a 82.3% gross margin and 35.1% operating margin. Return on equity is 22.0% and return on invested capital about 25.0%. Margins this wide usually signal pricing power or a cost advantage.
Debt Analysis
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
2.29x
Leverage: debt-to-equity is 2.3x, and operating profit covers interest about 3.4x, with a current ratio of 0.5x. That is elevated leverage, which raises risk if earnings or rates move against it.
Cash Flow Analysis
Operating CF
$5.90B
Free Cash Flow
$1.00B
FCF Margin
8.4%
In the latest year Williams Companies produced about $5.90B of operating cash flow and $1.00B of free cash flow after capital spending. That is a free-cash-flow yield of about 5.7% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockCoverage is weak, the payout was cut recently, or it's being financed rather than earned — treat the current yield as fragile.
Dividend yield
2.8%
Per share (latest FY)
$2.00
Total paid (latest FY)
$2.44B
History on record
10 years
dividend uses 243% of free cash flow
93% of net income paid out
total dividends increased 8 years in a row
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
30.72x
P/S
7.32x
P/B
5.62x
EV / EBITDA
—
WMB trades at 30.7x trailing earnings (about 25.2x on estimated forward earnings), 7.3x sales, and 5.6x book value. Reverse-engineering today's price implies the market expects roughly 7.8% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
$20.52
Current price
$70.11
Starting FCF (latest 10-K)
$1.00B
Growth, years 1–5
10.7%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where WMB sits versus the Energy companies we cover.
Bands show the middle half (25th–75th percentile) of the 47 Energy companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How WMB stacks up against its Energy peers — valuation, profitability, and growth versus the sector median.
Among the 47 rated Energy companies we cover, WMB ranks #16 by our overall rating. It trades at a premium versus the sector on earnings (30.7x P/E vs. 21.4x median) with a higher return on equity (22.0% vs. 13.3%) and faster revenue growth (10.7% vs. 0.7%).
P/E vs sector
30.7x
median 21.4x
ROE vs sector
22.0%
median 13.3%
Growth vs sector
10.7%
median 0.7%
Sector rank
#16
of 47 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Energy companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 47 rated companies among the 57 Energy stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$67.50 – $110.14
vs. $70.11 today · implied CAGR -1% – 9%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $13.26B | $14.72B | $16.34B | $18.14B | $20.14B |
| Net income | $2.92B | $3.24B | $3.60B | $3.99B | $4.43B |
| EPS | $2.34 | $2.60 | $2.88 | $3.20 | $3.55 |
| Share price (low) | $44.47 | $49.36 | $54.79 | $60.81 | $67.50 |
| Share price (high) | $72.55 | $80.53 | $89.39 | $99.22 | $110.14 |
| CAGR (low–high) | -37% / 3% | -16% / 7% | -8% / 8% | -3% / 9% | -1% / 9% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for WMB:
- Revenue is growing 10.7% a year, a sign of real demand.
- High net margins (23.4%) point to pricing power or efficiency.
- Strong return on equity (22.0%) shows capital is put to work well.
- Healthy free-cash-flow yield (~5.7%) funds buybacks and dividends.
- Pays a 2.8% dividend on top of any price gains.
- Our model's overall read is Favorable (59/100).
Bear Case
The case against WMB:
- Elevated leverage (debt/equity 2.3x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Valuation risk — at 30.7x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 2.3x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: Williams Companies is a large-cap energy business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 30.7x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Latest SEC Filings
WMB's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
WMB — frequently asked questions
Is WMB a good stock to buy?
We don't give buy or sell advice. Our model rates Williams Companies Favorable (59/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is WMB's rating on The Stocks School?
Williams Companies currently scores 59/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does WMB's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Williams Companies's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for WMB calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this WMB analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell WMB. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.