Williams Companies (WMB)
Energy · $88.1B market cap · SEC CIK 0000107263
fundamentals score out of 100
Next reports on Nov 2, 2026, before the open, with analysts expecting $0.54 in earnings per share.
The case for WMB
- 25% of revenue drops through to net profit.
- Revenue growing 8.7% year over year.
- Earnings per share up 26.3%.
- Pays a 2.8% dividend while you wait.
- Return on equity of 24%.
- Gross margin of 82% absorbs cost shocks.
The case against
- Priced at 7.2× sales with revenue growing only 8.7%.
- Only 38% of FY2025's $2.6B profit arrived as free cash.
- Current liabilities exceed current assets (ratio 0.48).
- Dividend takes 82% of earnings, leaving little cushion.
- Free cash flow is only 1.1% of its market value, a thin cash return for the price.
- P/E of 28.7× is higher than 90% of Energy companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Energy companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 27 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 50 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 69 |
| Momentumhow the price has behaved lately | 59 |
| Stabilityhow violently it moves, what it owes and what it pays you | 46 |
- Each factor except momentum is half fixed thresholds, half rank among the 21 Energy companies.
Key numbers
| Price / earnings | 28.7× |
|---|---|
| Price / book | 6.89× |
| Price / sales | 7.2× |
| Revenue growth (YoY) | +8.7% |
| EPS growth (YoY) | +26.3% |
| Gross margin | 82% |
| Operating margin | 38% |
| Net margin | 25% |
| Return on equity | 24% |
| Debt / equity | 2.33× |
| Current ratio | 0.48 |
| Dividend yield | 2.78% |
| Beta | 0.65 |
| 52-week range | $56.19 – $80.08 |
| Position in that range | 62% of the way up |
| 3-month return | -2.0% |
| 1-year return | +19.2% |
Five years of financials, as filed
Pulled from Williams Companies's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $14.9B | $12.6B | $12.0B | $17.8B | $12.8B |
| Operating income | $4.2B | $3.3B | $4.3B | $3.0B | $2.6B |
| Net income | $2.6B | $2.2B | $3.2B | $2.0B | $1.5B |
| Operating cash flow | $5.9B | $5.0B | $5.9B | $4.9B | $3.9B |
| Capital expenditure | $4.9B | $2.6B | $2.5B | $2.3B | $1.2B |
| Total assets | $58.6B | $54.5B | $52.6B | $48.4B | $47.6B |
| Shareholder equity | $12.8B | $12.4B | $12.4B | $11.5B | $11.4B |
| Cash | $63.0M | $60.0M | $2.1B | $152M | $1.7B |
| Free cash flow | $1.0B | $2.4B | $3.4B | $2.6B | $2.7B |
| Operating margin | 28.2% | 26.4% | 35.9% | 17.0% | 20.6% |
| Net margin | 17.6% | 17.6% | 26.5% | 11.5% | 11.9% |
| Diluted shares | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B |
Share count is essentially flat over 4 years.
What Williams Companies says it does
This report includes information for multiple registrants, specifically The Williams Companies, Inc. (Williams), as well as Transcontinental Gas Pipe Line Company, LLC (Transco) and Northwest Pipeline LLC (NWP) both of which are wholly owned subsidiaries of Williams (collectively, the Registrants). References to subsidiaries by name, including equity-method investees, Transco, and NWP, refer exclusively to those businesses and operations. General Williams is an energy company committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Williams has operations in 11 supply areas that provide natural gas gathering and processing (G&P), transmission and storage services; NGL fractionation, transportation, and storage services; and marketing services to approximately 800 customers. Williams owns an interest in and operates over 32,000 miles of pipelines in 24…
Risk factors WMB lists in its 10-K
- Product sales and service revenues – commodity consideration
- Product costs and net processing commodity expenses,
- Service revenues - commodity consideration
- Product costs and net processing commodity expenses
- Net gain (loss) from commodity derivatives
- Depreciation, depletion, and amortization expenses
- General and administrative expenses
- Impairment or write-off of certain assets
- Other investing income (loss) – net
- Provision (benefit) for income taxes
- Net gain from Energy Transfer litigation judgment
- Income (loss) from discontinued operations
- Period-Over-Period Operating Results – Williams’ Segments
- Transmission, Power & Gulf Modified EBITDA