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Williams Co
(NYSE:WMB)
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Rating:68Neutral
Price Target:
$81.00
â–²(13.84% Upside)
Action:Downgraded
Date:07/02/26
The score is driven primarily by solid underlying profitability and an upbeat earnings outlook with strong project commercialization and guidance to the upper half of the EBITDA range. These positives are balanced by leverage/cash-conversion constraints (low free cash flow relative to earnings and higher expected leverage) and a valuation headwind from a high P/E, while technicals remain supportive with a steady uptrend.
Positive Factors
High profitability and returns
Sustained high margins and ROE indicate structural operating efficiency and pricing power across midstream assets. Durable margin profile supports internal funding for maintenance and growth, underpins dividend capacity, and provides resilience versus volume or commodity swings over multiple years.
Negative Factors
Elevated and rising leverage
Higher leverage narrows financial flexibility and increases refinancing and interest-rate sensitivity through the capex build cycle. Prolonged elevated leverage could constrain capital allocation, raise covenant or rating risk, and limit ability to fund opportunistic investments for several years.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and returns
Sustained high margins and ROE indicate structural operating efficiency and pricing power across midstream assets. Durable margin profile supports internal funding for maintenance and growth, underpins dividend capacity, and provides resilience versus volume or commodity swings over multiple years.
Read all positive factors
Williams Co Key Performance Indicators (KPIs)
Williams Co (WMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$92.06B
Dividend Yield3.35%
Average Volume (3M)7.32M
Price to Earnings (P/E)32.9
Beta (1Y)0.31
Revenue Growth9.99%
EPS Growth22.02%
CountryUS
Employees5,829
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.29
Shares Outstanding1,222,998,300
10 Day Avg. Volume7,843,307
30 Day Avg. Volume7,322,435
Financial Highlights & Ratios
PEG Ratio1.60
Price to Book (P/B)5.73
Price to Sales (P/S)6.14
P/FCF Ratio73.03
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue9.77
Enterprise Value/Gross Profit15.55
Enterprise Value/Ebitda16.43
Forecast
1Y Price Target
$85.18Price Target Upside19.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)2.36
Revenue Forecast (FY)$12.21B
Williams Co Business Overview & Revenue Model
Company Description
The Williams Companies, Inc., alongside its subsidiaries, operates as a prominent energy infrastructure entity, primarily conducting business throughout the United States. The company’s operations are organized into four key segments: Transmission...
How the Company Makes Money
Williams makes money primarily by charging fees for midstream services across the natural gas value chain. Its key revenue streams generally include: (1) Transportation: earning regulated or contract-based fees for moving natural gas on its inters...
Williams Co Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and commercial momentum—record Q1 adjusted EBITDA ($2.25B, +13%) and EPS (+22%), multiple large project wins (Neo, Atlas, Silver Spur), robust backlog and clear execution milestones—supporting the company’s long-term growth targets. Near-term risks include raised growth CapEx ($7.3B midpoint) that pushed leverage to ~4.1x, a seasonal Q2 EBITDA dip, permitting and litigation risks on certain projects, and the need to finalize financing partners or other capital solutions. Overall, the positives (record results, project commercialization, expanding backlog and confirmed long-term growth trajectory) materially outweigh the near-term financing and execution risks.Positive Updates
Record Q1 Adjusted EBITDA and EPS Growth
Reported record adjusted EBITDA of $2.25 billion in Q1 2026, up 13% year-over-year (from $1.99 billion in Q1 2025). Adjusted earnings per share increased 22% year-over-year.
Negative Updates
Near-Term Leverage Pressure
Growth CapEx midpoint for 2026 increased to $7.3 billion, pushing leverage modestly above the company's target range to ~4.1x (target range 3.5x–4.0x). Management characterized this as a timing issue primarily for 2026–2027 before expected earnings growth in 2028+.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Q1 Adjusted EBITDA and EPS Growth
Reported record adjusted EBITDA of $2.25 billion in Q1 2026, up 13% year-over-year (from $1.99 billion in Q1 2025). Adjusted earnings per share increased 22% year-over-year.
Read all positive updates
Company Guidance
On the call, management said the company is now guiding to the upper half of its original 2026 adjusted EBITDA range after a record Q1 (adjusted EBITDA $2.25 billion, +13% YoY from $1.99 billion; adjusted EPS +22%), but expects seasonally lower EBITDA in 2Q before sequential growth in H2 including partial Socrates startup beginning in 3Q; they raised 2026 growth CapEx midpoint to $7.3 billion (driven in part by Neo), noted leverage will move modestly above the 3.5–4.0x target to about 4.1x in 2026–27 (with historic earnings growth expected to delever in 2028+), and said financing plans (including partner equity, asset sales or other options) will be firmed up over the next couple months; other published metrics cited on the call included Transmission & Gulf contributing roughly +$150 million (~17%), Transco +10%, Deepwater Gulf >60%, storage +35%, Northeast G&P +$10 million (2%), West +$56 million (~16%), Sequent adjusted EBITDA $227 million (with a $72 million increase including ~$15 million from Cogentrix), exclusion of a ~$180 million book gain on the Haynesville divestiture, ~700 MMcf/d of G&P expansions sanctioned in Q1, and new/project-specific metrics — Neo: 682 MW, 12.5-year contract, ~5x build multiple, ~ $2.3 billion investment, in‑service H2 2028; Atlas: up to 164 MMcf/d, 13‑year term, in‑service by YE26, ~<$50M CapEx; Silver Spur: 275 MMcf/d, 90‑mile pipeline, targeted early 2030 in‑service; and Transco Power Express upsized to 750 MMcf/d (online 2030) — all of which management says support their 2025–30 target of 10%+ EBITDA/EPS CAGR (the current contracted book now supporting roughly 9%).Williams Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.92B | 11.95B | 10.50B | 10.91B | 10.96B | 10.63B |
| Gross Profit | 7.49B | 5.12B | 6.17B | 6.80B | 5.50B | 4.75B |
| EBITDA | 7.09B | 7.41B | 6.57B | 7.71B | 5.70B | 5.09B |
| Net Income | 2.84B | 2.62B | 2.23B | 3.18B | 2.05B | 1.52B |
Balance Sheet | ||||||
| Total Assets | 59.57B | 58.57B | 54.53B | 52.63B | 48.43B | 47.61B |
| Cash, Cash Equivalents and Short-Term Investments | 950.00M | 63.00M | 60.00M | 2.15B | 152.00M | 1.68B |
| Total Debt | 30.30B | 29.39B | 27.08B | 26.46B | 22.90B | 23.68B |
| Total Liabilities | 44.41B | 43.58B | 39.69B | 37.74B | 34.39B | 33.51B |
| Stockholders Equity | 12.99B | 12.81B | 12.44B | 12.40B | 11.48B | 11.42B |
Cash Flow | ||||||
| Free Cash Flow | 722.00M | 1.00B | 2.40B | 3.37B | 2.61B | 2.70B |
| Operating Cash Flow | 6.07B | 5.90B | 4.97B | 5.94B | 4.89B | 3.94B |
| Investing Cash Flow | -5.19B | -5.45B | -4.86B | -3.89B | -3.38B | -1.47B |
| Financing Cash Flow | -29.00M | -442.00M | -2.20B | -49.00M | -3.04B | -942.00M |
Williams Co Technical Analysis
Positive
71.15
Price Trends
73.94
Positive
73.11
Positive
66.84
Positive
Market Momentum
0.46
Negative
56.08
Neutral
45.85
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 71.15 is below the 20-day moving average (MA) of 73.91, below the 50-day MA of 73.94, and above the 200-day MA of 66.84, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 45.85 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $58.29B | 12.35 | 33.27% | 7.31% | 3.18% | 6.43% | |
72 Outperform | $72.26B | 21.74 | 10.69% | 4.27% | 12.38% | 28.17% | |
71 Outperform | $68.34B | 14.77 | 13.97% | 8.04% | 12.46% | -10.48% | |
71 Outperform | $81.78B | 13.81 | 20.04% | 6.72% | -9.49% | 1.01% | |
70 Outperform | $54.68B | 42.56 | 23.48% | 1.07% | 24.15% | -55.07% | |
68 Neutral | $92.06B | 32.95 | 22.37% | 3.35% | 9.99% | 22.02% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
WMB
Williams Co
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19.02
33.71%
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Williams Co Corporate Events
Business Operations and StrategyExecutive/Board Changes
Williams Co Adds Two Independent Directors to Board
Positive
Jul 1, 2026
On July 1, 2026, Williams expanded its Board of Directors from ten to twelve members and appointed Lloyd W. “Billy” Helms, Jr. and Robb E. Turner as independent directors, bringing the share of independent directors to eleven. Helms jo...
Business Operations and StrategyPrivate Placements and Financing
Williams Co Expands Credit Facilities to Boost Liquidity
Positive
May 20, 2026
On May 19, 2026 The Williams Companies, Inc., together with subsidiaries Northwest Pipeline and Transcontinental Gas Pipe Line, entered into a Second Amended and Restated Credit Agreement providing a syndicated revolving facility of up to $3.75 bi...
Business Operations and StrategyShareholder Meetings
Williams Co shareholders approve expanded equity compensation plans
Positive
May 4, 2026
At its 2026 Annual Meeting of Stockholders held on April 28, 2026, The Williams Companies, Inc. secured shareholder approval for a wide-ranging overhaul of its 2007 Incentive Plan, expanding the pool of issuable shares from 50 million to 85 millio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.