Williams Co (WMB) AI Stock Analysis

• Market Cap: $69.01B
• Dividend Yield: 3.43%
• Average Volume (3M): 7.50M
• Price to Earnings (P/E): 29.2
• 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: 9,652,973
• 30 Day Avg. Volume: 7,503,470
• 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: 1.56
• Enterprise Value/Revenue: 9.40
• Enterprise Value/Gross Profit: 15.68
• Enterprise Value/Ebitda: 15.48
• 1Y Price Target: $70.33
• Price Target Upside: 21.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $64.00 ▲(10.46% Upside)

Williams Co's overall stock score is driven by strong earnings call performance and strategic growth initiatives, despite high leverage and cash flow challenges. Technical indicators suggest weak market momentum, and the stock appears overvalued, but the dividend yield provides some investor appeal.

Positive Factors

Strategic Partnerships

The partnership with Woodside Energy for a major pipeline and LNG terminal enhances Williams Co's market position and growth potential, securing long-term revenue streams.

EBITDA Growth

The significant increase in adjusted EBITDA indicates strong operational performance and the ability to generate higher earnings, supporting long-term financial health.

Pipeline Capacity Expansion

Increasing pipeline capacity strengthens Williams Co's infrastructure, enhancing its ability to meet growing demand and secure stable cash flows.

Negative Factors

High Leverage

Significant leverage poses risks in volatile markets, potentially straining financial flexibility and impacting long-term stability.

Declining Free Cash Flow

The decline in free cash flow raises concerns about cash generation efficiency, which could affect the company's ability to fund growth initiatives.

Cost Inflation

Rising costs in Power Innovation projects could impact project economics and profitability, challenging Williams Co's margin sustainability.

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. The company operates an extensive network of pipelines that facilitate the movement of these energy products from production sites to various markets. Key revenue streams include fees charged for the transportation of natural gas, which are typically based on the volume transported and the distance covered. Additionally, WMB earns revenue from processing natural gas to separate valuable byproducts, such as ethane and propane, which are sold to various industrial customers. Significant partnerships with major energy producers and utilities enhance the company's earnings potential, as they secure long-term contracts and commitments for pipeline capacity, providing a stable cash flow. Furthermore, the company's strategic investments in infrastructure projects and its ability to adapt to market dynamics contribute to its overall financial performance.

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: Negative
• Last Price: 57.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 57.94 is below the 20-day moving average (MA) of 59.96, below the 50-day MA of 60.25, and below the 200-day MA of 58.04, indicating a bearish trend. The MACD of -1.11 indicates Positive momentum. The RSI at 41.92 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$52.07B	10.85	34.35%	7.66%	5.19%	11.09%
EPD	75 Outperform	$65.43B	11.44	―	6.97%	-6.41%	―
ET	69 Neutral	$56.81B	12.77	12.91%	7.79%	-4.67%	-8.06%
WMB	68 Neutral	$69.01B	29.24	19.00%	3.43%	11.48%	-17.82%
KMI	68 Neutral	$57.49B	21.18	8.87%	4.46%	8.54%	7.22%
LNG	67 Neutral	$44.50B	11.50	67.52%	0.99%	17.12%	14.58%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Williams Co Corporate Events

Williams Co Announces $3.1 Billion Power Investment

On September 30, 2025, Williams Co announced a $3.1 billion investment in two new power innovation projects, with completion expected by the first half of 2027. These projects, supported by 10-year fixed-price agreements, increase the company’s total committed capital for power innovation to $5 billion and raise its 2025 growth capex by $875 million, impacting its leverage ratio midpoint to 3.7x.

The most recent analyst rating on (WMB) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Williams Co stock, see the WMB Stock Forecast page.