WILLIAMS COMPANIES, INC. (WMB) Stock Analysis

Analysis from 10-Q filed 2025-11-03. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 8.6%. FCF margin 6.9%. D/E 2.3x. Source: 10-Q filed 2025-11-03.

Metric	Value	Context
ROIC	8.6%	Near cost of capital
FCF Margin	6.9%	Healthy cash flow
Debt/Equity	2.3x	Elevated debt

ROIC 8.6% — Top 25% of sector peers. FCF margin 6.9% — Top 50%.

Explore WILLIAMS COMPANIES, INC.: Earnings History | Filings | ROIC Analysis

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.

---

Profitability: WILLIAMS COMPANIES, INC. earns 8.6% ROIC, Top 25% in Utilities

ROIC TTM 8.6%, sector median 5.6%, Top 25%. DuPont: NOPAT margin 28.3% × asset turnover 0.2x. Operating margin 37.1%. Source: 10-Q filed 2025-11-03.

Metric	WMB	Rating	Context
Return on Invested Capital (ROIC)	8.6%	Adequate	Above sector median of 5.6%
Return on Equity (ROE)	22.1%	Excellent	Efficient use of shareholder equity
Operating Margin	37.1%	Excellent	Efficient operations

---

Cash Flow: WILLIAMS COMPANIES, INC. generates $828.0M FCF at 6.9% margin, positive NaN/8 quarters

FCF TTM $828.0M. FCF margin 6.9%, Top 50%. OCF/Net income 2.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-03.

Metric	WMB	Rating	Context
Free Cash Flow Margin	6.9%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$828.0M	Good	Positive cash generation
OCF/Net Income	2.2x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

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

Debt/Equity 2.3x. Total debt $30.1B, cash & investments $950.0M. Source: 10-Q filed 2025-11-03.

Metric	WMB	Rating	Context
Debt to Equity	2.3x	Warning	Elevated leverage
Net Cash Position	$-29.1B	Warning	Net debt position

---

Valuation: WILLIAMS COMPANIES, INC. trades at 31.9x earnings

P/E 31.9x. EV/Sales 9.7x. FCF yield 0.9%. Dividend yield 2.8%. Source: 10-Q filed 2025-11-03.

Metric	WMB	Rating	Context
P/E Ratio	31.9x	Adequate	Premium valuation
EV/Sales	9.7x	Adequate	Growth premium priced in
FCF Yield	0.9%	Warning	Lower cash yield
Dividend Yield	2.8%	Adequate	Growth focus over income

---

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

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	8.6%	Top 25%	1.5x above
Free Cash Flow Margin	6.9%	Top 50%	-
Operating Margin	37.1%	Top 25%	1.8x above
Return on Equity (ROE)	22.1%	Top 5%	2.3x above
P/E Ratio	31.9x	N/A	-

---

Financial Scorecard

Metric	WMB	Rating	Sector Context
Return on Invested Capital (ROIC)	8.6%	Adequate	Top 25% of sector (median: 5.6%)
Free Cash Flow Margin	6.9%	Adequate	Top 50% of sector (median: 0.0%)
Debt to Equity Ratio	231.3%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	31.9x	Adequate	Growth premium
Free Cash Flow Yield	0.9%	Red flag	Growth-focused valuation

---

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 8.6%. Sector median 5.6%. 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 6.9%, generating $828.0 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 31.9x, which is above the sector median of N/A. EV/Sales 9.7x. FCF yield 0.9%. 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 $30.1 billion. Net debt $29.1 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 10.7% year-over-year. EPS +22.1% 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 8.6%, sector median 5.6% (Top 25%). FCF margin 6.9%, sector median 0.0% (Top 50%). 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) debt/equity 2.3x (above 1.5x threshold). Source: 10-Q filed 2025-11-03.

---

Data Source: Data sourced from 10-Q filed 2025-11-03. TTM metrics as of Q1 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.