Williams Companies (WMB)

Energy · $82.8B market cap · SEC CIK 0000107263

Next reports on Feb 8, 2027, after the close, with analysts expecting $0.63 in earnings per share.

52-week range $57.80 to $80.08. 16% below its 52-week high and 17% above its low.

The case for WMB

• 25% of revenue drops through to net profit.
• Revenue growing 8.8% year over year.
• Pays a 2.8% dividend while you wait.
• Return on equity of 23%.
• Gross margin of 82% absorbs cost shocks.
• Moves less than the market (beta 0.67).

The case against

• Pricey for its growth: 28.1× mid-cycle earnings, where 6%+ a year of growth plus a 2.8% dividend would justify about 21×.
• Priced at 6.6× sales with revenue growing only 8.8%.
• Only 18% of FY2025's $2.6B profit arrived as free cash.
• Current liabilities exceed current assets (ratio 0.75).
• Dividend takes 82% of earnings, leaving little cushion.
• Free cash flow is only 0.6% of its market value, a thin cash return for the price.

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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Its profits follow commodity prices, so its earnings and margin are read as half the latest year and half the average of the years on file (5), and last year's change in earnings per share is not counted as growth.
• Each factor except momentum is half fixed thresholds, half rank among the 21 Energy companies.

The financials

The financials, five years deep

Pulled from Williams Companies's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

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

• Significant prolonged changes in natural gas prices could affect supply and demand for Transco and NWP and cause a reduction in or termination of their long-term transportation and storage contracts or throughput on their systems
• Williams, Transco, and NWP are exposed to the credit risk of customers and counterparties, and credit risk management will not be able to completely eliminate such risk
• Williams, Transco, and NWP may not be able to grow or effectively manage growth, including the pursuit and operational implementation of power innovation projects
• The energy industry is highly competitive, and increased competitive pressure could adversely affect Williams’, Transco’s, and NWP’s businesses and operating results
• Some of Williams’, Transco’s, and NWP’s businesses are exposed to supplier concentration risks arising from dependence on a single or a limited number of suppliers
• Failure of service providers or disruptions to outsourcing relationships might negatively impact Williams’, Transco’s, and NWP’s ability to conduct their businesses
• An impairment of Williams’ assets, including property, plant, and equipment, intangible assets, and/or equity-method investments, could reduce Williams’ earnings
• Williams, Transco, and NWP may be subject to physical and financial risks associated with climate change
• Williams’, Transco’s, and NWP’s operations are subject to operational risks and hazards that might result in accidents and unforeseen interruptions
• Williams’, Transco’s, and NWP’s assets and operations, as well as their customers’ assets and operations, can be adversely affected by weather and other natural phenomena
• Williams’, Transco’s, and NWP’s businesses could be negatively impacted by acts of terrorism and related disruptions
• Williams’ operating results for certain components of its business might fluctuate on a seasonal basis
• Williams, Transco, and NWP do not own all of the land on which their pipelines and facilities are located, which could disrupt operations
• Williams’ business could be negatively impacted as a result of stockholder activism
• Williams’ costs and funding obligations for defined benefit pension plans and other postretirement benefit plans, and Transco’s and NWP’s allocations regarding the same, are affected by factors beyond Williams’ control
• Difficult conditions in the global financial markets and the economy in general could negatively affect Williams’, Transco’s, and NWP’s businesses and results of operations
• Restrictions in Williams’, Transco’s, and NWP’s debt agreements and the amount of their indebtedness may affect their future financial and operating flexibility
• Williams’ hedging activities might not be effective and could increase the volatility of Williams’ results
• Access to capital could be affected by financial institutions’ policies concerning fossil fuel related businesses
• Williams can exercise substantial control over Transco’s and NWP’s distribution policies, businesses, and operations and may do so in a manner that is adverse to Transco’s and NWP’s interests
• Williams, Transco, and NWP do not insure against all potential risks and losses and could be seriously harmed by unexpected liabilities or by the inability of their insurers to satisfy their claims
• Failure to attract and retain an appropriately qualified workforce could negatively impact Williams’, Transco’s, and NWP’s results of operations
• Holders of Williams’ common stock may not receive dividends in the amount expected or any dividends

Filings

Other Energy companies