Williams Co (WMB) AI Stock Analysis

• Market Cap: $90.02B
• Dividend Yield: 3.35%
• Average Volume (3M): 7.57M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.50
• Revenue Growth: 11.48%
• EPS Growth: -17.82%
• Country: US
• Employees: 5,829
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.55
• Shares Outstanding: 1,221,563,100
• 10 Day Avg. Volume: 6,570,359
• 30 Day Avg. Volume: 7,566,895
• PEG Ratio: 1.59
• Price to Book (P/B): 5.73
• Price to Sales (P/S): 6.14
• P/FCF Ratio: 73.03
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 9.90
• Enterprise Value/Gross Profit: 17.32
• Enterprise Value/Ebitda: 15.94
• 1Y Price Target: $79.88
• Price Target Upside: 8.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 2.3
• Revenue Forecast (FY): $12.75B

• Rating: 67 Neutral
• Price Target: $80.00 ▲(8.56% Upside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is driven by strong technical momentum and steady profitability, offset by elevated leverage and weaker 2025 free cash flow conversion. Valuation is on the expensive side for the current fundamentals, while the recent refinancing event modestly supports near-term balance-sheet flexibility.

Positive Factors

Fee-based, contract-backed revenues

Williams' core revenue streams are fee-based and supported by firm transportation and long-term contracts across pipelines, gathering, processing and storage. That contract structure provides durable, predictable cash flows and downside protection for 2–6 months and beyond versus commodity-only businesses.

Revenue growth and strong margins

The company resumed revenue growth in 2025 and maintains solid net margins (~21.9%), indicating resilient demand for midstream services and operational efficiency. Sustained top-line expansion with healthy margins supports cash generation and funds ongoing infrastructure investment over the medium term.

Improved operating cash flow

Improved operating cash flow in 2025 demonstrates the business’s ability to convert operations into cash, supporting maintenance capex and contractual obligations. Strong OCF is a durable source of liquidity even if free cash flow timing fluctuates due to capex or working-capital swings.

Negative Factors

Elevated leverage

Net leverage at multi-year highs reduces financial flexibility and increases vulnerability to interest-rate moves or volume shocks. High debt burdens constrain capacity to absorb operational setbacks, limit strategic optionality, and heighten refinancing and covenant risk over the coming months.

Weak free cash flow conversion

A steep FCF decline and poor conversion versus net income limits the company’s ability to pay down debt, fund incremental investment, or increase discretionary returns. Persistently weak FCF conversion would force greater reliance on external financing or cutbacks in capex/dividends.

Reliance on debt markets for maturity management

The recent large senior-note issuance to cover 2026 maturities underscores dependence on public debt markets to manage the maturity profile. This reliance raises execution and funding risk if market conditions tighten and increases interest-cost exposure over time.

Williams Co Business Overview & Revenue Model

Company Description

The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments. The Transmission & Gulf of Mexico segment comprises Transco and Northwest natural gas pipelines; and natural gas gathering and processing, and crude oil production handling and transportation assets in the Gulf Coast region, as well as various petrochemical and feedstock pipelines. 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 comprises 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, and the Mid-Continent region, which includes the Anadarko, Arkoma, and Permian basins; and operates natural gas liquid (NGL) fractionation and storage facilities 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; risk and asset management; and NGL marketing services. The company owns and operates 30,000 miles of pipelines, 29 processing facilities, 7 fractionation facilities, and approximately 23 million barrels of NGL storage capacity. The Williams Companies, Inc. was founded in 1908 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

WMB primarily makes money by charging fees for midstream natural gas services under contracts with producers, utilities, power generators, LNG exporters, marketers, and other shippers. Its key revenue streams typically include: (1) Transmission & storage fees: Earnings from transporting natural gas on interstate pipeline systems and providing storage/related services; revenues are largely fee-based and often supported by firm transportation or long-term agreements that reserve capacity. (2) Gathering revenues: Fees for collecting natural gas from wellheads and delivering it into processing plants or pipeline systems; contract structures may include fixed-fee gathering, acreage dedications, and minimum volume commitments depending on basin and customer arrangements. (3) Processing & NGL-related revenues: Income from processing raw natural gas to remove impurities and separate natural gas liquids (NGLs); depending on contract type, the company may earn fixed fees or retain a portion of extracted NGLs/natural gas as compensation, which can introduce commodity-price exposure when commodity-linked arrangements apply. (4) Other midstream services: Additional fees from compression, treating, and other ancillary services that support pipeline and processing operations. Overall, WMB’s earnings are driven mainly by throughput volumes on its pipelines and gathering systems, the level of contracted capacity and contract terms (e.g., firm commitments, duration, and rate structures), and—to the extent it has commodity-linked processing arrangements—prevailing prices for natural gas and NGLs.

Williams Co Financial Statement Overview

Summary

Profitability and revenue are solid with a return to growth in 2025, but the overall quality is held back by elevated leverage and a sharp decline in free cash flow in 2025, which reduces financial flexibility and raises execution risk.

Income Statement

Revenue has been relatively steady with a return to growth in 2025 (+4.1% after a small dip in 2024), and profitability remains strong for the period (2025 net margin ~21.9%). However, margins have cooled from the 2023 peak (net margin ~29.1% in 2023), and 2025 gross profit was notably lower versus 2024 despite higher revenue, pointing to some cost/mix pressure. Overall, the earnings profile is solid but not as strong as the best recent year.

Balance Sheet

The balance sheet shows meaningful leverage: debt-to-equity has risen to ~2.29 in 2025 from ~2.13 in 2023, with total debt also increasing over the period. Equity has grown modestly, and returns on equity are strong (about 20% in 2025), but that return is supported by high leverage, which reduces financial flexibility if operating conditions weaken.

Cash Flow

Operating cash flow is healthy and improved in 2025, but free cash flow weakened materially in 2025 (down ~44%), with free cash flow covering only ~17% of net income versus much stronger conversion in 2022–2024. Cash generation still supports the business, but the recent drop in free cash flow suggests higher spending, working-capital drag, or less favorable cash timing, which is a key near-term watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.95B	10.50B	10.91B	10.96B	10.63B
Gross Profit	5.12B	6.17B	6.80B	5.50B	4.75B
EBITDA	7.41B	6.57B	7.71B	5.70B	5.09B
Net Income	2.62B	2.23B	3.18B	2.05B	1.52B
Balance Sheet
Total Assets	58.57B	54.53B	52.63B	48.43B	47.61B
Cash, Cash Equivalents and Short-Term Investments	63.00M	60.00M	2.15B	152.00M	1.68B
Total Debt	29.36B	27.08B	26.46B	22.90B	23.68B
Total Liabilities	43.58B	39.69B	37.74B	34.39B	33.51B
Stockholders Equity	12.81B	12.44B	12.40B	11.48B	11.42B
Cash Flow
Free Cash Flow	1.00B	2.40B	3.37B	2.61B	2.70B
Operating Cash Flow	5.90B	4.97B	5.94B	4.89B	3.94B
Investing Cash Flow	-5.45B	-4.86B	-3.89B	-3.38B	-1.47B
Financing Cash Flow	-442.00M	-2.20B	-49.00M	-3.04B	-942.00M

Williams Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMB, the sentiment is Positive. The current price of 73.69 is above the 20-day moving average (MA) of 73.55, above the 50-day MA of 68.11, and above the 200-day MA of 60.96, indicating a bullish trend. The MACD of 1.45 indicates Positive momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 32.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WMB.

Williams Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNG	80 Outperform	$52.87B	8.01	79.10%	1.07%	17.12%	14.58%
MPLX	80 Outperform	$59.23B	11.07	34.93%	7.31%	5.19%	11.09%
EPD	70 Outperform	$81.15B	12.07	19.84%	6.72%	-6.46%	-0.87%
KMI	70 Outperform	$74.02B	20.01	9.92%	4.27%	8.54%	7.22%
WMB	67 Neutral	$90.02B	28.03	20.84%	3.35%	11.48%	-17.82%
ET	67 Neutral	$64.64B	12.28	14.09%	8.04%	-4.67%	-8.06%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Williams Co Corporate Events

Williams Co Prices $2.75 Billion Senior Notes Offering

On January 5, 2026, Williams priced a $2.75 billion public offering of senior notes, comprising $500 million of additional 5.650% notes due 2033, $1.25 billion of 5.150% notes due 2036 and $1 billion of 5.950% notes due 2056, with settlement expected on January 8, 2026 and the new 2033 tranche fungible with an existing $750 million issue for a combined $1.25 billion outstanding. The company plans to use the proceeds primarily to repay near-term debt, including $1.1 billion of 5.400% notes maturing in 2026, and for general corporate purposes, a move that should help manage its maturity profile and support balance sheet flexibility while sustaining investment in its natural gas infrastructure business.

The most recent analyst rating on (WMB) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Williams Co stock, see the WMB Stock Forecast page.