Williams Co (WMB) AI Stock Analysis

• Market Cap: $74.14B
• Dividend Yield: 3.35%
• Average Volume (3M): 6.26M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.53
• Revenue Growth: 11.48%
• EPS Growth: -17.82%
• Country: US
• Employees: 5,829
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.49
• Shares Outstanding: 1,221,218,900
• 10 Day Avg. Volume: 6,753,119
• 30 Day Avg. Volume: 6,261,659
• PEG Ratio: -0.98
• Price to Book (P/B): 5.31
• Price to Sales (P/S): 6.28
• P/FCF Ratio: 27.48
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 9.40
• Enterprise Value/Gross Profit: 15.68
• Enterprise Value/Ebitda: 15.48
• 1Y Price Target: $68.29
• Price Target Upside: 13.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 2.29
• Revenue Forecast (FY): $12.46B

• Rating: 71 Outperform
• Price Target: $67.00 ▲(11.13% Upside)

The score is driven primarily by strong profitability and a positive earnings outlook with reiterated guidance and major growth projects, offset by high leverage and weakening free-cash-flow conversion. Technicals are mildly supportive, while valuation is a headwind due to the elevated P/E despite the dividend yield.

Positive Factors

High Profitability

Williams displays durable, high midstream margins (EBIT >40%, net >21% TTM). Such elevated margins reflect stable fee-based contracts, operational scale and processing margins that support cash generation across commodity cycles and fund reinvestment and dividends.

Fee-based Contracted Revenue

A large share of revenue is fee-based and under long-term contracts, insulating cash flows from commodity price swings. This predictable revenue mix supports capital planning, debt servicing and underpins long-term EBITDA stability even during volatile commodity markets.

Strategic Growth Projects & Partnerships

Large, long-tenor growth investments and partnerships (Woodside LNG, major pipeline projects, Power Innovation projects backed by 10-year agreements) expand capacity and contracted cash flows, diversifying earnings and positioning Williams to capture secular gas and LNG demand growth.

Negative Factors

High Leverage

A debt-to-equity ratio of ~2.3 and management guidance implying leverage near ~3.7x raise sensitivity to interest rates and cash-flow volatility. Elevated leverage constrains strategic flexibility, increases interest burden and heightens refinancing risk across economic cycles.

Weakening Free Cash Flow Conversion

Although operating cash flow is solid, FCF conversion has declined ~4.05% TTM. Coupled with heavy 2025 growth capex guidance (~$3.95–4.25B), the declining FCF conversion pressures deleveraging ability and reduces cushion for discretionary investments or dividend growth.

Increased Debt & Covenant/Refinancing Risk

Recent large note issuances and private placements (e.g., $2.75B public, $1.7B private) plus a refinancing credit agreement with covenants raise interest and covenant exposure. These financings can increase fixed costs and limit flexibility if cash flows soften or markets tighten.

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

Williams Co generates revenue primarily through the transportation and processing of natural gas and natural gas liquids. Its key revenue streams include fee-based contracts for pipeline transportation services, which provide a stable income regardless of commodity price fluctuations. Additionally, the company earns revenue from its processing facilities, where it separates hydrocarbons into marketable products. Strategic partnerships with major energy producers enhance its operational capacity and market reach, while long-term contracts with customers help secure predictable cash flows. The company's focus on expanding its pipeline infrastructure and increasing its processing capabilities further supports its earnings potential.

Williams Co Financial Statement Overview

Summary

Williams Co shows strong profitability and efficient equity utilization, but faces challenges with high leverage and declining free cash flow. The company remains stable with consistent revenue growth, yet needs to address cost pressures and improve cash flow conversion to sustain long-term financial health.

Income Statement

Williams Co demonstrates strong profitability with a consistent EBIT margin of over 40% and a net profit margin exceeding 21% in the TTM period. Revenue growth is modest at 2.41% TTM, indicating stable operations. However, the slight decline in gross profit margin from previous years suggests some pressure on cost management.

Balance Sheet

The company maintains a high debt-to-equity ratio of 2.30, indicating significant leverage, which could pose risks in volatile market conditions. However, a return on equity of 19.51% TTM reflects efficient use of equity to generate profits. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow remains robust, but free cash flow has decreased by 4.05% TTM, raising concerns about cash generation efficiency. The operating cash flow to net income ratio is healthy at 0.89, but the free cash flow to net income ratio has declined, indicating potential challenges in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.48B	10.50B	10.91B	10.96B	10.63B	7.72B
Gross Profit	6.88B	6.17B	6.80B	5.50B	4.75B	4.38B
EBITDA	6.97B	6.57B	7.71B	5.70B	5.09B	3.17B
Net Income	2.37B	2.23B	3.18B	2.05B	1.52B	211.00M
Balance Sheet
Total Assets	55.74B	54.53B	52.63B	48.43B	47.61B	44.16B
Cash, Cash Equivalents and Short-Term Investments	70.00M	60.00M	2.15B	152.00M	1.68B	142.00M
Total Debt	27.99B	27.08B	26.46B	22.90B	23.68B	22.34B
Total Liabilities	40.88B	39.69B	37.74B	34.39B	33.51B	29.58B
Stockholders Equity	12.52B	12.44B	12.40B	11.48B	11.42B	11.77B
Cash Flow
Free Cash Flow	1.80B	2.40B	3.37B	2.61B	2.70B	2.22B
Operating Cash Flow	5.54B	4.97B	5.94B	4.89B	3.94B	3.50B
Investing Cash Flow	-4.27B	-4.86B	-3.89B	-3.38B	-1.47B	-1.56B
Financing Cash Flow	-1.96B	-2.20B	-49.00M	-3.04B	-942.00M	-2.08B

Williams Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 60.29 is above the 20-day moving average (MA) of 59.90, above the 50-day MA of 59.74, and above the 200-day MA of 58.62, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 63.30 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
MPLX	81 Outperform	$56.41B	11.75	34.35%	7.31%	5.19%	11.09%
ET	73 Outperform	$60.08B	14.01	13.09%	8.04%	-4.67%	-8.06%
EPD	73 Outperform	$70.29B	12.30	19.98%	6.72%	-6.46%	-0.87%
WMB	71 Outperform	$74.14B	31.41	19.00%	3.35%	11.48%	-17.82%
LNG	71 Outperform	$42.99B	11.11	67.52%	1.07%	17.12%	14.58%
KMI	68 Neutral	$61.25B	22.57	8.87%	4.27%	8.54%	7.22%
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.

Williams Co Refinances Senior Notes with New Credit Agreement

On December 1, 2025, Northwest Pipeline LLC entered into a Credit Agreement with PNC Bank and other lenders to refinance its 7.125% senior notes due on the same date. The agreement allows the company to borrow $250 million for various purposes, including working capital and acquisitions. The loans mature three years from the effective date, with interest rates based on the company’s senior unsecured debt ratings. The agreement includes covenants and default events that could impact the company’s operations if breached.

The most recent analyst rating on (WMB) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Williams Co stock, see the WMB Stock Forecast page.

Williams Co Completes $1.7 Billion Senior Notes Placement

On November 20, 2025, Transcontinental Gas Pipe Line Company, LLC, a subsidiary of The Williams Companies, Inc., successfully completed a private placement of $1.7 billion in senior notes. This issuance, consisting of $1.0 billion in 5.100% Senior Notes due 2036 and $700 million in 5.750% Senior Notes due 2056, aims to strengthen the company’s financial positioning by offering senior unsecured obligations. The notes are subject to specific covenants and redemption options, and the company has committed to a Registration Rights Agreement to facilitate an exchange offer within a year, potentially impacting its financial flexibility and stakeholder relations.

The most recent analyst rating on (WMB) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Williams Co stock, see the WMB Stock Forecast page.