WMB
Williams Companies
$71.29
▼ 0.7%Updated Aug 7, 11:30 AM ET
WMB at a glance — five pillars scored 0–100 from real filed financials.
Overall: 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.
▲ Up 23.7% over the last 12 months
Market Cap
$87.42B
P/E
31.23x
Forward P/E (est.)
25.6x
ROE
22.0%
Revenue Growth
10.7%
EPS Growth
22.0%
Profit Margin
23.4%
FCF Yield
5.7%
Debt / Equity
2.29x
ROIC
26.0%
Interest Coverage
3.39x
Current Ratio
0.83x
Dividend Yield
2.8%
Implied Growth (rev. DCF)
7.8%
Rating Score
59/100
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.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some 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
26.0% 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 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 $71.29, 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. Over the last month WMB found buyers near $70.02 (support) and sellers near $79.00 (resistance); its 52-week range is $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. It updates daily as the price and indicators change.
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.
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 26.0%. Margins this wide usually signal pricing power or a cost advantage.
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 0.8x. That is elevated leverage, which raises risk if earnings or rates move against it.
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.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
Coverage 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.
P/E
31.23x
P/S
7.32x
P/B
5.72x
EV / EBITDA
—
WMB trades at 31.2x trailing earnings (about 25.6x on estimated forward earnings), 7.3x sales, and 5.7x 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.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$20.52
Current price
$71.29
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.
Where WMB sits versus its Energy sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 47 Energy companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How WMB stacks up against its Energy peers — valuation, profitability, and growth versus the sector median.
In the Energy sector (57 S&P 500 companies), WMB ranks #16 of 57 by our overall rating. It trades at a premium versus the sector on earnings (31.2x P/E vs. 19.4x 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
31.2x
median 19.4x
ROE vs sector
22.0%
median 13.3%
Growth vs sector
10.7%
median 0.7%
Sector rank
#16
of 57 by rating
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. Sector median is across all 57 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $71.29 today · expected 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 | $2.38 | $2.64 | $2.93 | $3.25 | $3.61 |
| Share price (low) | $45.22 | $50.19 | $55.71 | $61.84 | $68.64 |
| Share price (high) | $73.77 | $81.89 | $90.89 | $100.89 | $111.99 |
| CAGR (low–high) | -37% / 3% | -16% / 7% | -8% / 8% | -3% / 9% | -1% / 9% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
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).
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.
Valuation risk — at 31.2x 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.
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 31.2x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 29 Wall Street analysts covering WMB recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
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.
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 grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — 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.