Williams Cos Inc
Exchange: NYSESector: EnergyIndustry: Oil & Gas Midstream
Williams is committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use.
Did you know?
Pays a 2.65% dividend yield.
Current Price
$75.41
-0.17%GoodMoat Value
$83.31
10.5% undervaluedProfile
Valuation (TTM)
Market Cap$92.09B
P/E35.22
EV$118.97B
P/B7.19
Shares Out1.22B
P/Sales7.71
Revenue$11.95B
EV/EBITDA16.68
Williams Cos Inc (WMB) Stock Analysis
GoodMoat Analysis
Williams Cos Inc (WMB) is a large midstream energy operator with a strong regional moat in natural gas infrastructure, but its valuation appears full. The company's high leverage and low free cash flow yield present quality concerns that warrant caution for a value investor.
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Williams Cos Inc (WMB) operates a vast network of natural gas pipelines and processing assets, primarily in the Transco corridor and key basins like the Haynesville. Applying the GoodMoat framework, the business demonstrates a durable competitive advantage, likely scoring high on Moat criteria such as Regulatory Barriers (scarce pipeline permits), Scale Privilege in critical infrastructure, and Strategic Partnerships with producers. This aligns with its robust 35.1% operating margin and 20.4% ROE, which exceeds the 15-20% high-quality threshold. However, the Quality Indicators present mixed signals. While profitability is strong, the Debt/Equity ratio of 2.29 is high, and the Free Cash Flow Yield of 1.0% is below the desirable >10-15% FCF margin benchmark, indicating capital intensity and limited owner earnings. The current P/E of 34.5x is elevated for a company with 8.7% revenue growth, and the stock trades at a 12% discount to the GoodMoat Target of $83.31, which falls into the 'Marginal' 10-20% Margin of Safety band. Per the Decision Framework, the business likely passes the Moat & Quality Gate but enters the Valuation & Risk Gate 'With Caution' due to the marginal safety margin, high leverage, and low FCF conversion. For a value investor, WMB represents a high-quality, moat-protected infrastructure asset, but further investigation should focus on the sustainability of its cash flows relative to its debt load and whether a more attractive entry price emerges.
Market Cap$92.09B
Current Price$75.41
P/E Ratio35.22
Forward P/E—
PEG Ratio0.65
EPS$2.14
Book Value$10.49
P/B Ratio7.19
WMB Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -9.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 29.3B
Revenue
8.2B
FY19
7.7B
FY20
10.6B
FY21
11.0B
FY22
10.9B
FY23
10.5B
FY24
11.9B
FY25
Net Income
850M
FY19
211M
FY20
1.5B
FY21
2.0B
FY22
3.2B
FY23
2.2B
FY24
2.6B
FY25
WMB 52-Week Range
$55.18
$76.31
50-Day MA: $73.11200-Day MA: $63.36
Did you know?
Currently trading near its 52-week high — in the top 4% of its range.
Williams Cos Inc (WMB) Financial Summary
Williams Cos Inc (WMB) is a Energy company in the Oil & Gas Midstream industry, listed on NYSE. The stock currently trades at $75.41 with a market capitalization of $92.09B.
Key valuation metrics include a P/E ratio of 35.22, price-to-book ratio of 7.19, and EPS of $2.14. The company reports a profit margin of 21.9% and return on equity of 20.4%.
WMB Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $92.09B |
| P/E Ratio | 35.22 |
| EPS | $2.14 |
| P/B Ratio | 7.19 |
| P/S Ratio | 7.71 |
| EV/EBITDA | 16.68 |
| Dividend Yield | 2.65% |
| Profit Margin | 21.9% |
| Return on Equity | 20.4% |
| Debt/Equity | 2.29 |
WMB Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $8.20B | $850.00M |
| FY20 | $7.72B | $211.00M |
| FY21 | $10.63B | $1.52B |
| FY22 | $10.96B | $2.05B |
| FY23 | $10.91B | $3.18B |
| FY24 | $10.50B | $2.23B |
| FY25 | $11.95B | $2.62B |
Williams Cos Inc (WMB) Valuation
Based on GoodMoat's DCF model, Williams Cos Inc has a fair value estimate of $83.31. At the current price of $75.41, the stock appears 9.5% undervalued relative to our intrinsic value estimate.
WMB Quality Indicators
Williams Cos Inc maintains a profit margin of 21.9% and an operating margin of 35.1%. Return on equity stands at 20.4%. The current ratio is 0.53. Debt-to-equity ratio is 2.29.
About Williams Cos Inc
Williams is committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use.
WMB Free Cash Flow
Williams Cos Inc generated $899.00M in trailing twelve-month free cash flow, representing an FCF yield of 0.98%. This low FCF yield may reflect heavy reinvestment or growth spending.
WMB Shares Outstanding
Williams Cos Inc has 1.22 billion shares outstanding at a share price of $75.41, giving it a market capitalization of $92.09B.
WMB Recent Insider Trades
Recent insider transactions at Williams Cos Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Wilson Terrance Lane (SVP & General Counsel) | SELL | 2,000 | $152700.00 |
| Wilson Terrance Lane (SVP & General Counsel) | SELL | 2,000 | $143500.00 |
| Fazel Payvand (Senior Vice President) | SELL | 2,898 | $211988.70 |