Williams Co (WMB) AI Stock Analysis

• Market Cap: $73.24B
• Dividend Yield: 3.21%
• Average Volume (3M): 7.81M
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.68
• Revenue Growth: 8.06%
• EPS Growth: -30.11%
• Country: US
• Employees: 5,829
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.82
• Shares Outstanding: 1,220,685,700
• 10 Day Avg. Volume: 5,672,007
• 30 Day Avg. Volume: 7,810,468
• PEG Ratio: 3.78
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.36
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $61.69
• Price Target Upside: 2.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

Williams Co scores well due to solid financial performance and strategic initiatives underscored by a positive earnings outlook. Strong profitability and strategic investments bolster the stock's prospects. However, high valuation and technical indicators suggest some caution is warranted. The recent corporate events further support its growth trajectory, making it an attractive option within its industry.

Positive Factors

Growth and Expansion

WMB raises its 2025 growth capex estimate significantly, showing strong commitment to future growth.

Project Announcements

WMB formally announced a $1.6B BTM project with an unnamed, large IG customer, which is viewed favorably.

Negative Factors

Contractual Concerns

The BTM project is backed by a 10-year fixed price power purchase agreement, which is shorter than the 15-year contract investors expected.

Financial Performance

Free cash flow per share was below estimates due to higher dividends paid to non-controlling interests, resulting in a cash shortfall.

Williams Co Business Overview & Revenue Model

Company Description

Williams Co (WMB) is a leading energy infrastructure company primarily engaged in the transportation, processing, and storage of natural gas. The company operates across the United States and focuses on connecting North America's significant natural gas supply areas to growing markets for natural gas. Its core services include the operation of interstate natural gas pipelines and the management of various natural gas processing and storage facilities.

How the Company Makes Money

Williams Co generates revenue through its extensive network of natural gas pipelines, primarily by charging fees for the transportation of natural gas. The company also earns income from its processing and storage facilities by providing essential services to producers and consumers of natural gas. Key revenue streams include long-term, fee-based contracts that ensure stable cash flow and reduce exposure to commodity price volatility. Additionally, strategic partnerships with other energy companies and investments in infrastructure expansion contribute to Williams Co's earnings by enhancing its capacity and market reach.

Williams Co Financial Statement Overview

Summary

Williams Co demonstrates strong profitability and operational efficiency, with competitive margins and effective cost management. However, the decline in revenue and free cash flow growth points to potential challenges in sustaining growth. The balance sheet indicates moderate leverage, which is manageable but requires careful monitoring to mitigate financial risk.

Income Statement

Williams Co displayed strong gross and net profit margins in 2024, with a gross profit margin of 80.24% and a net profit margin of 21.18%. However, the revenue growth rate was negative at -3.71% compared to 2023, indicating a decline in sales. EBIT and EBITDA margins were robust at 31.79% and 35.42%, respectively, underscoring effective cost management despite the revenue dip.

Balance Sheet

Williams Co maintains a stable balance sheet with a debt-to-equity ratio of 2.16, reflecting moderate leverage. The return on equity was strong at 17.89%, showcasing efficient use of equity to generate profits. However, the equity ratio stood at 22.80%, indicating a higher reliance on debt, which could pose risks in a volatile market.

Cash Flow

The company experienced a decrease in free cash flow growth of -28.77% in 2024, but maintained a healthy operating cash flow to net income ratio of 2.23, indicating strong cash generation capability. The free cash flow to net income ratio was 1.08, suggesting reasonable cash flow coverage of earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.50B	10.91B	10.96B	10.63B	7.72B
	Gross Profit
8.43B	6.80B	3.68B	3.21B	3.06B
	EBIT
3.34B	4.31B	3.02B	2.63B	2.20B
	EBITDA
6.57B	7.77B	5.70B	5.09B	4.58B
	Net Income Common Stockholders
2.23B	3.18B	2.05B	1.52B	211.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
60.00M	2.15B	152.00M	1.68B	142.00M
	Total Assets
54.53B	52.63B	48.43B	47.61B	44.16B
	Total Debt
26.94B	26.46B	22.90B	23.68B	22.34B
	Net Debt
26.88B	24.31B	22.75B	22.00B	22.20B
	Total Liabilities
39.69B	37.74B	34.39B	33.51B	29.58B
	Stockholders Equity
12.44B	12.40B	11.48B	11.42B	11.77B
Cash Flow		Free Cash Flow
2.40B	3.37B	2.61B	2.70B	2.22B
	Operating Cash Flow
4.97B	5.94B	4.89B	3.94B	3.50B
	Investing Cash Flow
-4.86B	-3.89B	-3.38B	-1.47B	-1.56B
	Financing Cash Flow
-2.20B	-49.00M	-3.04B	-942.00M	-2.08B

Williams Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.00
• 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 is above the 20-day moving average (MA) of 57.64, above the 50-day MA of 57.66, and above the 200-day MA of 52.12, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 77.97 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	83 Outperform	$53.04B	12.32	31.78%	6.97%	4.30%	10.45%
ET	79 Outperform	$57.20B	12.98	13.40%	7.71%	5.20%	18.35%
EPD	76 Outperform	$65.97B	11.44	20.78%	6.96%	9.03%	―
OKE	74 Outperform	$51.71B	16.16	16.04%	4.83%	40.55%	19.24%
KMI	73 Outperform	$59.62B	23.20	8.43%	4.30%	2.02%	5.40%
WMB	72 Outperform	$73.24B	33.02	17.92%	3.21%	8.06%	-30.11%
Sector *	56 Neutral	$7.00B	3.42	-4.37%	5.89%	-0.12%	-48.35%

Williams Co Corporate Events

Williams Co Holds Annual Stockholders Meeting

On April 29, 2025, The Williams Companies, Inc. held its Annual Meeting of Stockholders where several key proposals were voted on. Stockholders elected eleven director nominees for a one-year term, approved the compensation of named executive officers on an advisory basis, and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to maintain the company’s governance and financial oversight, ensuring continuity in its strategic direction.

Spark’s Take on WMB Stock

According to Spark, TipRanks’ AI Analyst, WMB is a Outperform.

Williams Co scores well due to solid financial performance and strategic initiatives underscored by a positive earnings outlook. Strong profitability and strategic investments bolster the stock’s prospects. However, high valuation and technical indicators suggest some caution is warranted. The recent corporate events further support its growth trajectory, making it an attractive option within its industry.

To see Spark’s full report on WMB stock, click here.

Williams Co Appoints New Executive Vice President

On April 24, 2025, Williams Co. announced the appointment of Larry Larsen as Executive Vice President and Chief Operating Officer, effective May 3, 2025. Larsen, who has been with the company since 1999, brings extensive experience in various leadership roles, including his recent position as Senior Vice President of Gathering and Processing. His appointment is expected to ensure a seamless transition and continuity in leadership, enhancing Williams’ competitive advantage and supporting its long-term growth strategy.

Spark’s Take on WMB Stock

According to Spark, TipRanks’ AI Analyst, WMB is a Neutral.

Williams Co scores well due to its strong financial performance and strategic initiatives, notably the new power infrastructure agreement. The earnings call highlighted robust growth prospects, although high valuation and limited technical momentum dampen the overall score. The company’s leverage and reliance on debt also pose potential risks.

To see Spark’s full report on WMB stock, click here.

Williams Co Announces COO Retirement in 2025

On March 13, 2025, Williams announced that Micheal G. Dunn, Executive Vice President and Chief Operating Officer, will retire on May 2, 2025. During his tenure, Dunn transformed the company into a cohesive operating entity, completed significant infrastructure projects, and enhanced regulatory compliance, positioning Williams to continue its natural gas-focused strategy. Efforts are underway to find a suitable successor, with Dunn participating in the process.

Williams Co Announces Major Power Infrastructure Agreement

On February 28, 2025, Williams Co entered into a significant agreement with a large investment-grade company to provide natural gas and power generation infrastructure, investing approximately $1.6 billion. This project, expected to complete in the second half of 2026, marks Williams Co’s first power innovation project, backed by a 10-year fixed-price power purchase agreement, and raises its 2025 growth capex by $925 million, impacting its leverage ratio.