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Williams Companies Inc (WMB)

Overvalued
EnergyOil & Gas MidstreamUnited States

Fundamental

62

Price

$67.97

Market Cap

$84.37B

Part 1 · What the company is worth

Overview

The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission, Power & Gulf, Northeast G&P, West, and Gas & NGL Marketing Services segments. The Transmission, Power & Gulf segment comprises Transco, NWP, and Mountain West interstate natural gas pipelines, and their related natural gas storage facilities, as well as natural gas gathering and processing; and crude oil production handling and transportation assets in the Gulf Coast region. The Northeast G&P segment engages in the midstream gathering, processing, and fractionation activities in the Marcellus Shale region primarily in Pennsylvania and New York, and the Utica Shale region of eastern Ohio. The West segment consists of gas gathering, processing, and treating operations in the Rocky Mountain region of Colorado and Wyoming, the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of South Texas, the Haynesville Shale region of northwest Louisiana, the Mid-Continent region that includes the Anadarko and Permian basins, and the DJ Basin of Colorado; and operates natural gas liquid (NGL) fractionation and storage assets in central Kansas near Conway. The Gas & NGL Marketing Services segment provides wholesale marketing, trading, storage, and transportation of natural gas for natural gas utilities, municipalities, power generators, and producers; asset management services; and transports and markets NGLs. The company owns and operates approximately 32,000 miles of pipelines. The Williams Companies, Inc. was founded in 1908 and is headquartered in Tulsa, Oklahoma.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$15.43B

Trailing 12 months (through 6/30/2026)

Net Income

$3.07B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$1.00B

Total Equity

$12.81B

Total Liabilities

$43.58B

Current Ratio

0.48

Interest Coverage

3.13

Debt/EBITDA

4.71

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

CyclicalOvervalued

Fair Value

$52.39

Current Price

$67.97

Margin of Safety

-29.7%

Fair Value Range

$34.06 - $70.73

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$85.61
Discounted cash flow (DCF):Not applicable to this type of company
Earnings multiple (P/E):$70.13
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):$37.14
Justified P/B:Not applicable to this type of company
Dividend discount (Gordon):Not applicable to this type of company
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:$30.67
Revenue multiple:Not applicable to this type of company
Analyst Consensus:Strong Buy (22B / 4H / 1S)
Last Earnings Surprise:+30.15%

Valuation Metrics

P/E Ratio

27.08

ROE

20.4%

P/B Ratio

6.30

P/FCF

83.95

Gross Margin

-

ROIC

6.8%

Profitability Radar

Value Creation (Economic Moat)

ROIC

6.8%

WACC

6.9%

ROIC − WACC

-0.1 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • Price CAGR 8.87%
  • ROIC 6.8%
  • Debt/Equity ratio
  • Operating Margin 30.2%
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 23.9%
  • Revenue Growth 5Y 9.1%
  • Analyst Consensus 81% Buy
  • Earnings Surprise avg 13.3%
  • PEG Ratio 0.44
  • Earnings Quality (OCF/NI) 1.95
  • Share Dilution 0.1%
  • Net Margin Trend 19.9% vs 17.3%
  • Piotroski F-Score 7/9

Failed (7)

  • EPS CAGR 1.52%
  • P/FCF 83.95
  • P/B Ratio 6.30
  • Positive Free Cash Flow
  • Current Ratio
  • Price below Graham Number
  • DCF valuation (Overvalued)

Unavailable (3)

  • Gross Margin NaN%
  • Dividend Payout NaN%
  • CapEx intensity

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.95

High quality: earnings backed by cash

Share Dilution

0.1%

Share count is stable

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Chad J. ZamarinCEO, President & Director48
Mr. Larry C. LarsenExecutive VP & COO50
Judge Terence Lane Wilson J.D.Senior VP & General Counsel58
Mr. Robert R. WingoExecutive Vice President of Corporate Strategic Development46
Ms. Mary A. HausmanVP, Chief Accounting Officer & Controller52
Ms. Caroline SardellaDirector of Investor Relations-
Ms. Debbie L. PickleSenior VP of Communications & Corporate Social Responsibility and Chief Human Resource Officer47
Mr. Eric J. OrmondSenior Vice President of Project Execution38
Mr. Donald R. Cravins Jr.Head of Government Affairs & Outreach-
Mr. Thomas F. McCoySenior Vice President of Upstream62

Audit Risk

4

Board Risk

3

Compensation Risk

2

Shareholder Rights Risk

6

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-24

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-03

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-10

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for WMB, sourced from Markets Gazette.

  • 8/3/2026POSITIVE
    Williams Agrees to Buy Momentum Midstream for $5.5 Billion

    Williams Companies has agreed to acquire Momentum Midstream LLC from EnCap Flatrock Midstream for up to $5.5 billion. This strategic acquisition significantly expands Williams' natural gas pipeline network along the U.S. Gulf Coast, a key region for energy infrastructure. The deal is expected to enhance Williams' midstream capabilities and market position, potentially leading to increased cash flows and operational synergies. Investors will be watching for the integration progress and the impact on the company's growth trajectory.

  • 6/28/2026NEUTRAL
    Williams Said to Near $5.5 Billion Deal for Momentum Midstream

    Williams Companies is reportedly in advanced negotiations to acquire Momentum Midstream for approximately $5.5 billion. This potential transaction represents one of Williams' most significant acquisitions to date. The deal, if finalized, would expand Williams' natural gas pipeline infrastructure. Investors will be monitoring the final terms and strategic rationale for this acquisition, as it could impact the company's debt levels and future growth trajectory.

  • 5/25/2026POSITIVE
    If You Invested $100 In Williams Companies Stock 5 Years Ago, You Would Have This Much Today

    An investment of $100 in Williams Companies (WMB) five years ago would have yielded a significant return, illustrating the company's performance in the energy infrastructure sector. While specific figures are not provided in the prompt, such an analysis typically highlights total returns including stock price appreciation and dividends. Williams Companies, a major player in natural gas processing and transportation, has likely benefited from stable demand for energy infrastructure services. Investors considering WMB should evaluate its current valuation, dividend yield, and growth prospects within the evolving energy landscape.

  • 4/11/2026POSITIVE
    Data centers and gas demand make boring pipelines great again

    Williams Companies Inc. is emerging as a key player in the energy infrastructure sector, benefiting from a surge in demand for natural gas pipelines and power generation. The company is positioned as a prime example of growth driven by the current construction boom, particularly for data centers which are increasing energy consumption. This trend suggests a robust outlook for Williams, as the demand for reliable energy infrastructure intensifies. Investors may see this as a positive sign for the company's future revenue streams and market position.

  • 3/2/2026POSITIVE
    A Glimpse Into The Expert Outlook On Williams Companies Through 10 Analysts

    Williams Companies (WMB) continues to garner strong support from financial analysts, as evidenced by recent ratings. In March 2022, Stifel maintained its "Buy" rating, while in February, Barclays affirmed "Overweight" and Raymond James reiterated "Strong Buy." These consistent positive recommendations from prominent investment firms signal a robust confidence in the company's future prospects. For investors, the sustained favorable outlook suggests that market consensus anticipates potential growth or solid stability for WMB stock, positioning it as an attractive option for those seeking energy sector exposure backed by expert approval.

via Markets Gazette