The Williams Companies, Inc. (WMB) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Energy · Oil & Gas Midstream
Is The Williams Companies, Inc. a safe investment right now?
The Williams Companies, Inc.'s Altman Z-Score of 1.34 places it in the distress zone. Our fair value estimate is $62.60 (Fairly Valued). Moat rating: 3.3/5 stars.
Could The Williams Companies, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 1.34 falls below the 1.8 distress threshold, indicating significant financial stress.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives WMB's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0489 | 1.2 | -0.06 |
| B · Retained Earnings / Total Assets | RE / TA | -0.2089 | 1.4 | -0.29 |
| C · EBIT / Total Assets | EBIT / TA | 0.0865 | 3.3 | 0.29 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.9952 | 0.6 | 1.2 |
| E · Revenue / Total Assets | Rev / TA | 0.204 | 1.0 | 0.2 |
How has WMB's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 1.58 | Distress |
| 2023 | 1.59 | Distress |
| 2024 | 1.39 | Distress |
| 2025 | 1.34 | Distress |
Source: Calculated from WMB's latest 10-K filing on SEC EDGAR.
What is The Williams Companies, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $2.22 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $2.14 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $2.35 | 23 analysts consensus |
| Trailing P/E | 33.2x | Current market pricing |
| Fair P/E (β discount) | 28.2x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $79.68 (23 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does The Williams Companies, Inc. have a durable competitive advantage?
Moat rating: 3.3/5.
What makes up WMB's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 3/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is WMB's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 10.7% | — |
| 2023 | 14.5% | Rising |
| 2024 | 11.1% | Declining |
| 2025 | 12.0% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is The Williams Companies, Inc.'s dividend safe?
Can The Williams Companies, Inc. afford its dividend?
Payout ratio is 93.5%. FCF covers the dividend 1.3x. 45 consecutive years of payments.
The Williams Companies, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $11.9B | $10.5B | $11.0B | Rising |
| Net Income | $2.6B | $2.2B | $2.0B | Rising |
| Free Cash Flow | $0.9B | $2.3B | $2.6B | Declining |
| Gross Margin | 62.0% | 58.7% | 50.1% | Rising |
Recent events that affect our WMB analysis
WMB earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.62. Revenue estimate: $3.26B. Our current Fair Value: $62.60 — a significant beat or miss could shift this estimate.
WMB analyst consensus: 84% bullish (21 of 25 analysts)
5 Strong Buy, 16 Buy, 3 Hold, 0 Sell, 1 Strong Sell. Consensus target: $79.68 (12.1% upside). Compare with our independent Fair Value: $62.60.
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB paid $0.5250/share dividend
Dividend Safety Grade: B. Payout ratio: 93.5%.
WMB filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
WMB missed EPS estimates by 1.4%
Reported EPS: $0.55 vs estimate $0.56. Our Fair Value of $62.60 may face downward pressure if the trend continues.
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB paid $0.5000/share dividend
Dividend Safety Grade: B. Payout ratio: 93.5%.
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB missed EPS estimates by 1.0%
Reported EPS: $0.53 vs estimate $0.54. Our Fair Value of $62.60 may face downward pressure if the trend continues.
WMB filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB paid $0.5000/share dividend
Dividend Safety Grade: B. Payout ratio: 93.5%.
WMB missed EPS estimates by 6.0%
Reported EPS: $0.46 vs estimate $0.49. Our Fair Value of $62.60 may face downward pressure if the trend continues.
WMB filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB paid $0.5000/share dividend
Dividend Safety Grade: B. Payout ratio: 93.5%.
WMB beat EPS estimates by 8.4%
Reported EPS: $0.60 vs estimate $0.55. Earnings strength supports our Fair Value of $62.60 (12.0% below current price).
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB paid $0.5000/share dividend
Dividend Safety Grade: B. Payout ratio: 93.5%.
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
WMB beat EPS estimates by 4.1%
Reported EPS: $0.47 vs estimate $0.45. Earnings strength supports our Fair Value of $62.60 (12.0% below current price).
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
WMB filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about The Williams Companies, Inc.
What is The Williams Companies, Inc. stock price today?
The Williams Companies, Inc. (WMB) stock price is $71.10 as of the latest market close, traded on the NYSE exchange.
What does The Williams Companies, Inc. do?
The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission, Power & Gulf, Northeast G&P, West, and Gas & NGL Marketing Services segments. The Transmission, Power & Gulf segment comprises Transco, NWP, and Mountain West interstate natural gas pipelines, and their related natural gas storage facilities, as well as natural gas gathering and processing; and crude oil production handling and transportation assets in the Gulf Coast region.
What is The Williams Companies, Inc. market cap?
The Williams Companies, Inc. has a market capitalization of $86.95B, classifying it as a large-cap stock in the Energy sector.
What sector and industry is WMB in?
The Williams Companies, Inc. operates in the Energy sector, specifically within the Oil & Gas Midstream industry. It trades on the NYSE under the ticker symbol WMB.
Is WMB stock overvalued or undervalued?
Based on our valuation model, The Williams Companies, Inc. trades 13.6% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $62.60
- Current Price: $71.10
- Valuation Zone: Fairly Valued
What is WMB stock forecast and analyst target price?
Based on 23 Wall Street analysts, the consensus price target for The Williams Companies, Inc. is $79.68, implying upside of 12.1% from the current price.
- Analyst High Target: $90.00
- Analyst Low Target: $60.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is The Williams Companies, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for The Williams Companies, Inc.:
- Revenue growth (current year est.): 6.9%
- EPS growth (current year est.): 11.9%
- Revenue growth (next year est.): 9.9%
- EPS growth (next year est.): 11.1%
What are The Williams Companies, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $11.9B | Rising |
| Net Income | $2.6B | Rising |
| Free Cash Flow | $0.9B | Declining |
| Gross Margin | 62.0% | Rising |
What is WMB's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 33.2x
- Forward P/E (next 12 months est.): 27.2x
- FairValueLabs Fair P/E: 28.2x
How volatile is WMB stock?
The Williams Companies, Inc. has a beta of 0.65, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does The Williams Companies, Inc. have?
The Williams Companies, Inc.'s balance sheet shows:
- Total Cash: $63.0M
- Total Debt: $29.54B
- Net Cash Position: $-29.48B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is The Williams Companies, Inc.'s free cash flow?
The Williams Companies, Inc. generated $-353.5M in trailing twelve-month free cash flow (from $5.90B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does The Williams Companies, Inc. pay a dividend, and is it safe?
Yes, The Williams Companies, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.8%
- Payout Ratio: 93.5%
- Consecutive Years Paid: 45
- 5-Year Dividend Growth: -20.4%
- FairValueLabs Safety Grade: B
Is The Williams Companies, Inc. at risk of going bankrupt?
The Williams Companies, Inc.'s Altman Z-Score is 1.34, placing it in the distress zone (below 1.8) — elevated bankruptcy risk. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does The Williams Companies, Inc. have a durable competitive advantage?
The Williams Companies, Inc. scores 3.3/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 3/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is WMB's return on equity (ROE)?
The Williams Companies, Inc.'s return on equity is 18.6%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy WMB stock?
WMB shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol WMB
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is WMB a value stock or speculative?
FairValueLabs classifies The Williams Companies, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of The Williams Companies, Inc.?
The current CEO of The Williams Companies, Inc. is Mr. Chad J. Zamarin.
What is WMB's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $2.14
- Forward EPS (next 12 months est.): $2.61
- Analyst consensus EPS (this year): $2.35
- Analyst consensus EPS (next year): $2.61
Other Energy companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
WMB analysis methodology: How we calculate fair value, Z-Scores, and moat ratings