Williams Co (WMB) AI Stock Analysis

• Market Cap: $89.76B
• Dividend Yield: 3.35%
• Average Volume (3M): 7.55M
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.51
• 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: 6,275,445
• 30 Day Avg. Volume: 7,548,902
• 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: 1.33
• Enterprise Value/Revenue: 10.02
• Enterprise Value/Gross Profit: 17.53
• Enterprise Value/Ebitda: 16.14
• 1Y Price Target: $78.31
• Price Target Upside: 5.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 2.25
• Revenue Forecast (FY): $12.79B

• Rating: 70 Outperform
• Price Target: $75.00 ▲(1.39% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

Strong technical uptrend and a positive forward outlook from the latest earnings call support the score, but it is tempered by weaker 2025 free cash flow and meaningful leverage, while valuation remains demanding due to a high P/E despite a moderate dividend yield.

Positive Factors

Fee-based contracts / stable cash flows

Williams' fee-for-service midstream model yields predictable cash flows insulated from commodity price swings. Long-term contracts and strategic partnerships enhance revenue visibility, supporting steady cash generation for capex, dividends, and debt service over multi-year horizons.

Sustained EBITDA growth and guidance

Consistent adjusted EBITDA expansion and maintained guidance reflect durable operating leverage from new pipeline and processing capacity. A multi-year EBITDA CAGR target (9%) signals management confidence in project-driven revenue growth and longer-term earnings power.

Strategic LNG and infrastructure partnerships

Large-scale partnerships and completed transmission projects expand Williams' system scale and contracted capacity, strengthening market position. Collaborations like the Woodside tie-up lock in demand, de-risk revenues and accelerate utilization of fixed-cost infrastructure.

Negative Factors

Elevated leverage

Material leverage reduces financial flexibility and increases sensitivity to rate or cash-flow shocks. High debt levels can constrain ability to fund opportunistic investments, raise costs of capital, and amplify downside risk if commodity or volume trends weaken.

Weak free cash flow conversion

A sharp FCF decline and poor conversion ratio highlight pressure on internally generated liquidity. This limits self-funded growth, raises reliance on external financing for capex or maturities, and constrains margin of safety for dividends or deleveraging plans.

High and rising capital intensity

Sustained multi‑billion annual growth capex commitments strain cash flow and keep leverage elevated. Large ongoing project spend raises execution and cost inflation risk, prolonging the period before projects fully convert to excess free cash flow.

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

Profitability and revenue trends are solid (2025 revenue back to growth and net margin ~21.9%), but elevated leverage (debt-to-equity ~2.29) and a sharp 2025 free-cash-flow step-down (~44% decline; low conversion vs net income) reduce financial flexibility and quality of earnings.

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: 73.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 73.97 is above the 20-day moving average (MA) of 69.90, above the 50-day MA of 64.36, and above the 200-day MA of 60.18, indicating a bullish trend. The MACD of 2.70 indicates Negative momentum. The RSI at 78.20 is Negative, neither overbought nor oversold. The STOCH value of 90.46 is Negative, 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	80 Outperform	$59.89B	12.22	34.70%	7.31%	5.19%	11.09%
LNG	71 Outperform	$47.56B	12.29	67.52%	1.07%	17.12%	14.58%
WMB	70 Outperform	$89.76B	34.43	20.74%	3.35%	11.48%	-17.82%
EPD	70 Outperform	$78.51B	13.67	―	6.72%	-6.46%	-0.87%
KMI	70 Outperform	$72.73B	23.90	9.85%	4.27%	8.54%	7.22%
ET	67 Neutral	$64.68B	15.54	12.75%	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.

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.