Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Williams Companies, Inc.

WMB · NYSE · Energy

Fundamental quality

REASONABLE

73

out of 100

Williams Companies, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 23.3%) with wide margins (net margin 25.2%) and a business that keeps growing (8.7% a year). On fundamental quality it scores 73 out of 100, profiling it as a company of reasonable quality. Its weakest area is its financial strength (net debt 4.07× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Williams Companies owns one of America's largest natural-gas pipeline networks, crowned by Transco: the gas highway feeding the East Coast. It doesn't drill or speculate on gas prices: it charges tolls for moving it, like a highway with decades-long contracts.

What will shape its future

  • Data centers' electricity demand, translating into more gas transported.
  • Permits for new pipelines, the eternal regulatory battle of every expansion.
  • The generous dividend, the stock's reason for being for its typical shareholder.

Breakdown by area

I.Growth
95

EPS growth: 63.2% · Revenue growth: 8.7%

II.Profitability
92

Net margin: 25.2% · ROE: 23.3% · ROIC: 8.6%

III.Financial health
33

Net debt/EBITDA: 4.07x · FCF: -0.9%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its financial strength drags it down the most.

Versus its sector

Percentile against the other 30 Energy companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 97%
ROEbeats 77%
Growthbeats 27%
Cash generationbeats 7%
Less debtbeats 29%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Williams Companies, Inc. strengths

  • Growing earnings per share (63.2% annualized).
  • Expanding margins: net margin has risen from 3% to 22% in recent years.
  • Exceptional net margin (25.2%), high even for its sector: the business is clearly profitable.
  • Strong return on equity (ROE of 23.3%): it puts shareholder capital to good use.

Williams Companies, Inc. risks and weaknesses

  • Negative free cash flow: the business burns cash.
  • High leverage (net debt of 4.07× EBITDA): more exposed to rates and to a rough patch.

Williams Companies, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20207,7192112,25722,202
202110,6271,5172,70621,995
202210,9652,0492,63622,402
202310,9073,1793,42223,563
202410,5032,2252,40126,396
202511,9502,6181,00528,598

Between 2020 and 2025, revenue went from $7,719M to $11,950M (+55%) and net income went from $211M to $2,618M (+1141%). Meanwhile, its margins have widened (from 3% to 22%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+4.4%
  • Net income+36.8%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score7773
  • Net margin23.4%25.2%
  • ROE21.5%23.3%
  • FCF margin6.9%-0.9%
  • Net debt/EBITDA4.3×4.07×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$1.99

per share, yearly

93.3% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Williams Companies, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Williams Companies, Inc. a good company to invest in?

In terms of business quality, Williams Companies, Inc. scores 73 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Williams Companies, Inc. a profitable company?

Very. Williams Companies, Inc. shows a net margin of 25.2% and an ROE of 23.3%, typical of a highly profitable business.

Does Williams Companies, Inc. have a lot of debt?

Yes, its leverage is high: net debt is 4.07 times its EBITDA.

Is Williams Companies, Inc. growing?

Its revenue has grown 8.7% annualized in recent years and its earnings per share 63.2%.

Does Williams Companies, Inc. generate cash?

Over the last twelve months its free cash flow was negative.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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