WILLIAMS COMPANIES, INC. (WMB) Stock Analysis

Analysis from 10-Q filed 2025-11-03. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 8.5%. FCF margin -0.9%. D/E 2.3x. Source: 10-Q filed 2025-11-03.

Metric	Value	Context
ROIC	8.5%	Near cost of capital
FCF Margin	-0.9%	Cash flow pressure
Debt/Equity	2.3x	Elevated debt

ROIC 8.5% — Top 25% of sector peers. FCF margin -0.9% — Bottom 50%.

Explore WILLIAMS COMPANIES, INC.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for WMB: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: WILLIAMS COMPANIES, INC. earns 8.5% ROIC, Top 25% in Utilities

ROIC TTM 8.5%, sector median 5.3%, Top 25%. DuPont: NOPAT margin 29.2% × asset turnover 0.2x. Gross margin 82.4%. Operating margin 38.2%. Source: 10-Q filed 2025-11-03.

Metric	WMB	Rating	Context
Return on Invested Capital (ROIC)	8.5%	Adequate	Above sector median of 5.3%
Return on Equity (ROE)	24.0%	Excellent	Efficient use of shareholder equity
Gross Margin	82.4%	Excellent	Strong pricing power
Operating Margin	38.2%	Excellent	Efficient operations

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Cash Flow: WILLIAMS COMPANIES, INC. generates $-108.0M FCF at -0.9% margin, positive NaN/8 quarters

FCF TTM $-108.0M. FCF margin -0.9%, Bottom 50%. OCF/Net income 2.0x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-03.

Metric	WMB	Rating	Context
Free Cash Flow Margin	-0.9%	Red flag	Thin cash margins
Free Cash Flow (TTM)	$-108.0M	Red flag	Cash burn
OCF/Net Income	2.0x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: WILLIAMS COMPANIES, INC. at 2.3x leverage

Debt/Equity 2.3x. Total debt $30.8B, cash & investments $203.0M. Source: 10-Q filed 2025-11-03.

Metric	WMB	Rating	Context
Debt to Equity	2.3x	Warning	Elevated leverage
Net Cash Position	$-30.6B	Warning	Net debt position

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Valuation: WILLIAMS COMPANIES, INC. trades at 29.6x earnings

P/E 29.6x. EV/Sales 9.0x. FCF yield -0.1%. Dividend yield 2.8%. Source: 10-Q filed 2025-11-03.

Metric	WMB	Rating	Context
P/E Ratio	29.6x	Adequate	Premium valuation
EV/Sales	9.0x	Adequate	Growth premium priced in
FCF Yield	-0.1%	Warning	Lower cash yield
Dividend Yield	2.8%	Adequate	Growth focus over income

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Capital Allocation: WILLIAMS COMPANIES, INC. returns 2.8% shareholder yield

Total shareholder yield 2.8% (div 2.8%). Capital returned $2.5B TTM. Source: 10-Q filed 2025-11-03.

Metric	WMB	Rating	Context
Total Shareholder Yield	2.8%	Adequate	Dividend + buyback yield combined
Total Capital Returned (TTM)	$2.5B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	8.5%	Top 25%	1.6x above
Free Cash Flow Margin	-0.9%	Bottom 50%	-
Gross Margin	82.4%	Top 25%	1.5x above
Operating Margin	38.2%	Top 10%	1.8x above
Return on Equity (ROE)	24.0%	Top 5%	2.6x above
P/E Ratio	29.6x	N/A	-

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Financial Scorecard

Metric	WMB	Rating	Sector Context
Return on Invested Capital (ROIC)	8.5%	Adequate	Top 25% of sector (median: 5.3%)
Free Cash Flow Margin	-0.9%	Red flag	Bottom 50% of sector (median: 0.0%)
Gross Margin	82.4%	Excellent	Top 25% of sector (median: 56.6%)
Debt to Equity Ratio	233.5%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	29.6x	Adequate	Growth premium
Free Cash Flow Yield	-0.1%	Red flag	Growth-focused valuation

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Frequently Asked Questions

Q: What is WILLIAMS COMPANIES, INC.'s Return on Invested Capital (ROIC)?

WILLIAMS COMPANIES, INC. (WMB) has a trailing twelve-month Return on Invested Capital (ROIC) of 8.5%. Sector median 5.3%. Source: 10-Q filed 2025-11-03.

Q: What is WILLIAMS COMPANIES, INC.'s Free Cash Flow Margin?

WILLIAMS COMPANIES, INC. (WMB) has a free cash flow margin of -0.9%, generating $-108.0 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-03.

Q: What is WILLIAMS COMPANIES, INC.'s P/E ratio and how does it compare to peers?

WILLIAMS COMPANIES, INC. (WMB) trades at a P/E ratio of 29.6x, which is above the sector median of N/A. EV/Sales 9.0x. Source: 10-Q filed 2025-11-03.

Q: Does WILLIAMS COMPANIES, INC. pay a dividend?

WILLIAMS COMPANIES, INC. (WMB) currently pays a dividend yield of 2.8%. Total shareholder yield (dividend + buybacks) 2.8%. Source: 10-Q filed 2025-11-03.

Q: How much debt does WILLIAMS COMPANIES, INC. have?

WILLIAMS COMPANIES, INC. (WMB) has a debt-to-equity ratio of 2.3x with total debt of $30.8 billion. Net debt $30.6 billion. Source: 10-Q filed 2025-11-03.

Q: What is WILLIAMS COMPANIES, INC.'s revenue and earnings growth?

WILLIAMS COMPANIES, INC. (WMB) grew revenue by 8.7% year-over-year. EPS +26.4% YoY. Source: 10-Q filed 2025-11-03.

Q: How does WILLIAMS COMPANIES, INC. compare to competitors in Utilities?

Compared to other companies in Utilities, WILLIAMS COMPANIES, INC. (WMB) shows: ROIC 8.5%, sector median 5.3% (Top 25%). FCF margin -0.9%, sector median 0.0% (Bottom 50%). Gross margin 82.4%, 25.8pp above sector median. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.

Q: What warning signs should I watch for with WILLIAMS COMPANIES, INC.?

Quantitative warning flags for WILLIAMS COMPANIES, INC. (WMB): 1) FCF margin -0.9% (below 5%); 2) debt/equity 2.3x (above 1.5x threshold). Source: 10-Q filed 2025-11-03.

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Data Source: Data sourced from 10-Q filed 2025-11-03. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.