A Business at a Glance
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WILLIAMS COMPANIES, INC.
WMB
$90.4B
Mkt Cap
$74.00
-1.66%
WILLIAMS COMPANIES, INC. (WMB) has a current P/E ratio of 34.6, compared to its historical median P/E of 20.9. The stock is currently considered Fair based on its historical valuation range.
WILLIAMS COMPANIES, INC. (WMB) has a 5-year average return on invested capital (ROIC) of 7.5%. This is below average and may indicate limited pricing power.
WILLIAMS COMPANIES, INC. (WMB) has a market capitalization of $93.4B. It is classified as a large-cap stock.
Yes, WILLIAMS COMPANIES, INC. (WMB) pays a dividend with a trailing twelve-month yield of 2.65%.
Based on historical P/E analysis, WILLIAMS COMPANIES, INC. (WMB) appears fair. The current P/E of 34.6 is 65% above its historical median of 20.9. The estimated fair value CAGR (P/E method) is 43.7%.
WILLIAMS COMPANIES, INC. (WMB) operates in the Natural Gas Transmission industry, within the Utilities sector.
WILLIAMS COMPANIES, INC. (WMB) reported annual revenue of $11.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
Williams is an energy infrastructure company that operates over 32,000 miles of natural gas pipelines across 24 states and the Gulf of America, along with 35 natural gas processing facilities, 9 NGL fractionation facilities, and significant storage capacity. The company earns revenues through four primary segments: natural gas gathering and processing (fee-based and commodity-based contracts with approximately 253 customers), interstate transmission and storage services (regulated by FERC with long-term firm reservation contracts), NGL marketing and trading, and natural gas marketing services. Williams' gathering and processing business is substantially focused on gas-directed drilling basins with long-term agreements ranging from month-to-month to the life of the producing lease, generating revenues primarily through volume-based fees and NGL margins; approximately 93 percent of NGL production volumes are under fee-based contracts. The company's transmission assets, including the 9,600-mile Transco system and 3,900-mile Northwest Pipeline system, serve a broad mix of customers including local distribution companies, utilities, industrial users, and power generators, with most businesses fully contracted under long-term firm reservation agreements with high credit quality customers. Williams' marketing businesses provide natural gas and NGL asset management, trading, and optimization services, with the company bearing commodity price risk on marketed volumes and using derivatives to hedge exposures. The company's competitive advantages include its extensive integrated pipeline network spanning from supply basins to demand centers, long-term contracted cash flows, and strategic positioning to serve emerging demand from data centers, LNG exports, and industrial reshoring.
【Strong project execution and earnings growth】 Management expects continued high-return project execution across its portfolio with a robust backlog of fully contracted opportunities extending beyond 2030, supporting a targeted 10% compound annual growth rate for EBITDA and EPS from 2025 through 2030. The company is advancing five major power innovation projects at an attractive 5x EBITDA build multiple, with projects expected to come online in 2027 and 2028, which will drive significant earnings growth and naturally de-lever the balance sheet despite temporary leverage moving modestly above the 3.5x–4.1x target range in 2026 and 2027. Natural gas demand is rising across the company's footprint driven by data center power needs, LNG export growth, and industrial reshoring, with management sanctioning approximately 700 million cubic feet per day of new expansion projects in the first quarter alone and expecting continued strong demand pull on supply basins like the Haynesville. The company remains committed to disciplined capital allocation and dividend growth while managing leverage through the near-term period, with management expecting to provide detailed financing plans and additional project commercialization updates in the coming months.
| Metric | Target | Period |
|---|---|---|
| Adjusted EBITDA CAGR | 10% | 2025 through 2030 |
| EPS CAGR | 10% | 2025 through 2030 |
| Growth CapEx | $3.95 billion–$4.25 billion | FY2025 |
| Power Innovation Project Investment (NEO) | approximately $2.3 billion | Project NEO |
| Total Power Innovation Committed Capital | approximately $5.1 billion | As of Q2 FY2025 |
| Adjusted EBITDA (FY2025 guidance upper half) | upper half of original guidance | FY2026 |
Adjusted EBITDA CAGR (2025 through 2030): “+10% CAGRs for EBITDA and EPS for 2025 through 2030 is what we're targeting”
EPS CAGR (2025 through 2030): “+10% CAGRs for EBITDA and EPS for 2025 through 2030 is what we're targeting”
Growth CapEx (FY2025): “we have shifted the range upward to $3.95 billion-$4.25 billion”
Power Innovation Project Investment (NEO) (Project NEO): “the project is expected to represent an investment of approximately $2.3 billion”
Total Power Innovation Committed Capital (As of Q2 FY2025): “total power innovation committed capital now stands at approximately $5.1 billion at a targeted 5x EBITDA build multiple”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call, Q4 FY2024 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 11.9B | 11.9B | 10.5B | 10.9B | 17.8B | 10.6B |
| Net Income | 2.8B | 2.6B | 2.2B | 3.2B | 2.0B | 1.5B |
| EPS | $2.21 | $2.14 | $1.82 | $2.60 | $1.67 | $1.24 |
| Free Cash Flow | 828M | 1.0B | 2.4B | 3.4B | 2.6B | 2.7B |
| ROIC | 7.9% | 7.9% | 6.9% | 9.4% | 7.4% | 5.9% |
| Gross Margin | - | 72.9% | 72.6% | 75.9% | 76.6% | 58.4% |
| Debt/Equity | 2.33 | 2.30 | 2.18 | 2.15 | 2.01 | 2.09 |
| Dividends/Share | $1.96 | $2.00 | $1.90 | $1.79 | $1.70 | $1.64 |
| Operating Income | 4.4B | 4.2B | 3.3B | 4.3B | 3.0B | 2.6B |
| Operating Margin | 37.1% | 35.1% | 31.8% | 39.5% | 17.0% | 24.8% |
| ROE | 21.5% | 20.7% | 17.9% | 26.6% | 17.9% | 13.1% |
| Shares Outstanding | 1,262M | 1,222M | 1,221M | 1,222M | 1,225M | 1,221M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 7.6B | 7.4B | 7.5B | 8.0B | 8.7B | 8.2B | 7.7B | 10.6B | 17.8B | 10.9B | 10.5B | 11.9B | 11.9B |
| Gross Margin | 54.4% | 50.9% | 58.0% | 54.0% | 48.1% | 65.6% | 72.0% | 58.4% | 76.6% | 75.9% | 72.6% | 72.9% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 661M | 741M | 722M | 594M | 569M | 558M | 466M | 558M | 636M | 665M | 708M | 721M | 720M |
| EBIT | 1.6B | 226M | 689M | 927M | 768M | 1.9B | 2.2B | 2.6B | 3.0B | 4.3B | 3.3B | 4.2B | 4.4B |
| Op. Margin | 20.5% | 3.1% | 9.2% | 11.5% | 8.8% | 23.4% | 28.5% | 24.8% | 17.0% | 39.5% | 31.8% | 35.1% | 37.1% |
| Net Income | 2.1B | -571M | -424M | 2.2B | -156M | 847M | 208M | 1.5B | 2.0B | 3.2B | 2.2B | 2.6B | 2.8B |
| Net Margin | 27.7% | -7.8% | -5.7% | 27.1% | -1.8% | 10.3% | 2.7% | 14.2% | 11.5% | 29.1% | 21.2% | 21.9% | 23.4% |
| Non-Recurring | -56M | 1.1B | 0 | 1.1B | 692M | -2.0M | 187M | 0 | 0 | 139M | 10M | 212M | 212M |
| Returns on Capital | |||||||||||||
| ROIC | 4.5% | 0.7% | 2.4% | 3.2% | 1.4% | 3.6% | 4.5% | 5.9% | 7.4% | 9.4% | 6.9% | 7.9% | 7.9% |
| ROE | 31.0% | -7.7% | -7.9% | 30.4% | -1.3% | 6.0% | 1.7% | 13.1% | 17.9% | 26.6% | 17.9% | 20.7% | 21.5% |
| ROA | 5.4% | -1.1% | -0.9% | 4.7% | -0.3% | 1.9% | 0.5% | 3.3% | 4.3% | 6.3% | 4.1% | 4.6% | 4.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.1B | 2.7B | 4.2B | 3.1B | 3.3B | 3.7B | 3.5B | 3.9B | 4.9B | 5.9B | 5.0B | 5.9B | 6.1B |
| Free Cash Flow | -1.9B | -459M | 2.1B | 690M | 37M | 1.6B | 2.3B | 2.7B | 2.6B | 3.4B | 2.4B | 1.0B | 828M |
| Owner Earnings | 886M | 888M | 2.3B | 1.3B | 1.5B | 1.9B | 1.7B | 2.0B | 2.8B | 3.8B | 2.7B | 3.5B | 3.6B |
| CapEx | 4.0B | 3.2B | 2.1B | 2.4B | 3.3B | 2.1B | 1.2B | 1.2B | 2.3B | 2.5B | 2.6B | 4.9B | 5.2B |
| Maint. CapEx | 1.2B | 1.7B | 1.8B | 1.7B | 1.7B | 1.7B | 1.7B | 1.8B | 2.0B | 2.1B | 2.2B | 2.3B | 2.3B |
| Growth CapEx | 2.9B | 1.4B | 288M | 663M | 1.5B | 395M | 0 | 0 | 244M | 445M | 354M | 2.5B | 2.9B |
| D&A | 1.2B | 1.7B | 1.8B | 1.7B | 1.7B | 1.7B | 1.7B | 1.8B | 2.0B | 2.1B | 2.2B | 2.3B | 2.3B |
| CapEx/OCF | 190.6% | 118.3% | 55.7% | 77.7% | 98.9% | 57.1% | 35.4% | 31.4% | 46.1% | 42.4% | 51.7% | 83.0% | 86.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 1.4B | 1.8B | 1.3B | 992M | 1.4B | 1.8B | 1.9B | 2.0B | 2.1B | 2.2B | 2.3B | 2.4B | 2.5B |
| Dividend Yield | 7.6% | 9.7% | 12.0% | 6.4% | 7.9% | 8.5% | 10.8% | 8.0% | 6.1% | 6.1% | 4.6% | 3.5% | 2.6% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.0M | 130M | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% | 0.3% | N/A | N/A | 0.0% |
| Stock-Based Comp | 53M | 82M | 73M | 78M | 55M | 57M | 52M | 81M | 73M | 77M | 99M | 93M | 85M |
| Debt Repayment | 1.8B | 6.5B | 7.1B | 5.9B | 3.2B | 909M | 3.8B | 894M | 2.9B | 634M | 2.9B | 2.8B | 2.8B |
| Balance Sheet | |||||||||||||
| Net Debt | 21.3B | 24.4B | 23.3B | 20.0B | 22.2B | 22.2B | 22.4B | 22.2B | 22.9B | 24.5B | 27.0B | 29.4B | 29.4B |
| Cash & Equiv. | 240M | 100M | 170M | 899M | 168M | 289M | 142M | 1.7B | 152M | 2.1B | 60M | 63M | 950M |
| Long-Term Debt | 20.8B | 23.8B | 22.6B | 20.4B | 22.4B | 20.1B | 21.5B | 21.6B | 21.9B | 23.4B | 24.7B | 27.3B | 30.1B |
| Debt/Equity | 2.46 | 3.98 | 5.06 | 2.17 | 1.53 | 1.68 | 1.91 | 2.09 | 2.01 | 2.15 | 2.18 | 2.30 | 2.33 |
| Interest Coverage | 2.1 | 0.2 | 0.6 | 0.9 | 0.7 | 1.6 | 1.9 | 2.2 | 2.6 | 3.5 | 2.4 | 2.9 | 3.0 |
| Equity | 8.8B | 6.1B | 4.6B | 9.7B | 14.7B | 13.4B | 11.8B | 11.4B | 11.5B | 12.4B | 12.4B | 12.8B | 13.0B |
| Total Assets | 50.5B | 49.0B | 46.8B | 46.4B | 45.3B | 46.0B | 44.2B | 47.6B | 48.4B | 52.6B | 54.5B | 58.6B | 59.6B |
| Total Liabilities | 5.5B | 5.3B | 5.3B | 3.6B | 2.6B | 29.7B | 4.0B | 33.5B | 5.1B | 37.7B | 6.4B | 7.1B | 138M |
| Intangibles | 10.5B | 10.0B | 0 | 8.7B | 7.8B | 7.8B | 0 | 7.4B | 7.4B | 7.1B | 6.7B | 6.3B | 0 |
| Retained Earnings | -5.5B | -8.0B | -9.6B | -8.4B | -10.0B | -11.0B | -12.7B | -13.2B | -13.3B | -12.3B | -12.4B | -12.2B | -12.0B |
| Working Capital | -677M | -970M | -1.5B | -467M | -347M | -2.4B | -890M | -423M | -1.1B | -1.3B | -2.7B | -2.9B | -686M |
| Current Assets | 1.9B | 1.5B | 1.5B | 2.2B | 1.5B | 1.6B | 1.4B | 4.5B | 3.8B | 4.5B | 2.7B | 3.2B | 3.3B |
| Current Liabilities | 2.6B | 2.5B | 2.9B | 2.6B | 1.8B | 4.0B | 2.3B | 5.0B | 4.9B | 5.8B | 5.3B | 6.1B | 4.0B |
| Per Share Data | |||||||||||||
| EPS | 2.92 | -0.76 | -0.57 | 2.62 | -0.16 | 0.70 | 0.17 | 1.24 | 1.67 | 2.60 | 1.82 | 2.14 | 2.21 |
| Owner EPS | 1.22 | 1.18 | 3.12 | 1.54 | 1.55 | 1.59 | 1.41 | 1.66 | 2.29 | 3.10 | 2.18 | 2.83 | 2.88 |
| Book Value | 12.12 | 8.18 | 6.24 | 11.64 | 15.04 | 11.04 | 9.62 | 9.36 | 9.37 | 10.15 | 10.19 | 10.48 | 10.29 |
| Cash Flow/Share | 2.92 | 3.60 | 5.59 | 3.72 | 3.38 | 3.05 | 2.86 | 3.23 | 3.99 | 4.86 | 4.07 | 4.83 | 4.07 |
| Dividends/Share | 1.96 | 2.45 | 1.68 | 1.20 | 1.36 | 1.52 | 1.60 | 1.64 | 1.70 | 1.79 | 1.90 | 2.00 | 1.96 |
| Shares Out. | 724.0M | 751.3M | 743.9M | 829.8M | 975.0M | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.3B |
| Valuation | |||||||||||||
| P/E Ratio | 8.4 | N/A | N/A | 7.5 | N/A | 24.3 | 92.6 | 17.6 | 17.2 | 12.4 | 28.6 | 27.8 | 33.5 |
| P/FCF | N/A | N/A | 6.8 | 23.6 | 383.8 | 13.0 | 8.5 | 9.8 | 13.3 | 11.5 | 26.5 | 72.4 | 112.8 |
| EV/EBIT | 24.7 | 154.6 | 53.5 | 38.8 | 47.3 | 23.1 | 19.2 | 17.8 | 17.5 | 13.7 | 25.9 | 23.2 | 27.8 |
| Price/Book | 2.0 | 1.7 | 3.1 | 1.7 | 1.0 | 1.5 | 1.6 | 2.3 | 3.1 | 3.2 | 5.1 | 5.7 | 7.2 |
| Price/Sales | 2.4 | 2.6 | 1.4 | 1.9 | 2.0 | 2.6 | 2.3 | 2.3 | 3.1 | 3.3 | 4.8 | 5.9 | 7.8 |
| FCF Yield | -10.8% | -4.3% | 14.7% | 4.2% | 0.3% | 7.7% | 11.7% | 10.2% | 7.5% | 8.7% | 3.8% | 1.4% | 0.9% |
| Market Cap | 17.7B | 10.6B | 14.3B | 16.3B | 14.2B | 20.5B | 19.3B | 26.6B | 35.1B | 39.5B | 63.7B | 72.7B | 93.4B |
| Avg. Price | 25.66 | 25.11 | 14.15 | 18.61 | 18.09 | 17.81 | 14.72 | 20.30 | 27.62 | 29.24 | 41.03 | 57.71 | 74.00 |
| Year-End Price | 24.49 | 14.17 | 19.19 | 19.65 | 14.57 | 16.98 | 15.74 | 21.78 | 28.65 | 32.31 | 52.14 | 59.52 | 74.00 |
WILLIAMS COMPANIES, INC. passes 6 of 9 quality checks, suggesting mixed fundamentals.
WILLIAMS COMPANIES, INC. trades at 34.6x trailing earnings, compared to its 15-year median P/E of 20.9x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 89.9x vs a median of 13.0x. The company's 5-year average ROIC is 7.5% with a gross margin of 71.3%. Total shareholder yield (dividends) is 2.6%. At current prices, the estimated annualized return to fair value is +17.7%.
WILLIAMS COMPANIES, INC. (WMB) has a net profit margin of 21.9%. This is a strong margin indicating high profitability.
WILLIAMS COMPANIES, INC. (WMB) generated $1.0 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
WILLIAMS COMPANIES, INC. (WMB) has a debt-to-equity ratio of 2.30. This indicates higher leverage, which may increase financial risk.
WILLIAMS COMPANIES, INC. (WMB) reported earnings per share (EPS) of $2.14 in its most recent fiscal year.
WILLIAMS COMPANIES, INC. (WMB) has a return on equity (ROE) of 20.7%. This indicates the company generates strong returns for shareholders.
WILLIAMS COMPANIES, INC. (WMB) has a 5-year average gross margin of 71.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for WILLIAMS COMPANIES, INC. (WMB), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
WILLIAMS COMPANIES, INC. (WMB) has a book value per share of $10.48, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued high-return project execution across its portfolio with a robust backlog of fully contracted opportunities extending beyond 2030, supporting a targeted 10% compound annual growth rate for EBITDA and EPS from 2025 through 2030. The company is advancing five major power innovation projects at an attractive 5x EBITDA build multiple, with projects expected to come online in 2027 and 2028, which will drive significant earnings growth and naturally de-lever the balance sheet despite temporary leverage moving modestly above the 3.5x–4.1x target range in 2026 and 2027. Natural gas demand is rising across the company's footprint driven by data center power needs, LNG export growth, and industrial reshoring, with management sanctioning approximately 700 million cubic feet per day of new expansion projects in the first quarter alone and expecting continued strong demand pull on supply basins like the Haynesville. The company remains committed to disciplined capital allocation and dividend growth while managing leverage through the near-term period, with management expecting to provide detailed financing plans and additional project commercialization updates in the coming months.
Based on recent SEC filings and earnings calls, WILLIAMS COMPANIES, INC. (WMB) has provided the following forward guidance: Adjusted EBITDA CAGR: 10% (2025 through 2030); EPS CAGR: 10% (2025 through 2030); Growth CapEx: $3.95 billion–$4.25 billion (FY2025); Power Innovation Project Investment (NEO): approximately $2.3 billion (Project NEO); Total Power Innovation Committed Capital: approximately $5.1 billion (As of Q2 FY2025), plus 1 additional metric.
Adjusted EBITDA (FY2025 guidance upper half) (FY2026): “we are currently pointing toward the upper half of our full-year EBITDA guidance”