Reading the tape
NYSE: WMB
The Williams Companies, Inc.
Energy · Oil & Gas Midstream
Market Cap
$92.22B
52w High
$76.87
52w Low
$55.82
P/E
33.03
Volume
7.57M
Outstanding Shares
1.22B
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inModerate confidence
1Y Price: 25.33%Revenue (TTM): 10.58%FCF (TTM): -65.62%P/FCF: 100th pct
What changed
The stock rose 25.33% over the last year. Revenue grew 10.58% over the trailing twelve months. Operating margin moved from 31.73% to 38.79%. Free cash flow declined 65.62% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (100th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 38.79% — continued expansion would be needed to justify the premium. Revenue growth of 10.58% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States.
CEOChad J. Zamarin
SectorEnergy
IndustryOil & Gas Midstream
Employees5,829
IPO dateDec 31, 1981
Valuation
Forward P/E—
EV/EBITDA13.85
Enterprise value$102.69B
Stock splits
Jan 3, 2012↑ Forward
Every 1019 shares became 1250
Apr 24, 2001↑ Forward
Every 459 shares became 500
Dec 30, 1997↑ Forward
Every 1 shares became 2
Dec 31, 1996↑ Forward
Every 2 shares became 3
Nov 8, 1993↑ Forward
Every 1 shares became 2
Mar 3, 1975↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth-0.59%
Gross margin62.85%▼26.99%vs FY2024
Operating margin38.79%▲15.85%vs FY2024
ROE20.44%▲14.25%vs FY2024
Analyst consensus
RatingBuy
Target price$79.00▲4.76%
27
Buy
7
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Aug 3, 2026
Q3 FY26 · EPS est $0.54 · Revenue est $3.01B
View
Dividends
$2.05/shareQuarterly8yr growth streakAt RiskWMB pays a dividend with a 2.73% declared yield, 8 consecutive years of growth, growing at 4.56% annually, covered 0.4× by free cash flow.
Declared Yield
2.73%
Annual Div / Share
$2.05
5yr CAGR
+4.56%
Doubles every ~15.5yr
Payout Ratio
88.61%
At Risk
Dividend Growth Rate
3yr CAGR
+5.57%
5yr CAGR
+4.56%
10yr CAGR
-2.01%
Dividend Safety
1/10At Risk
Dividend History
Annual dividends paid per share
YearAnnual DivYoY
2025$2.00+5.3%
2024$1.90+6.1%
2023$1.79+5.3%
2022$1.70+3.7%
2021$1.64+2.5%
2020$1.60+5.3%
2019$1.52+11.8%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$27/yr
$2/mo
In 5 yrs
$34/yr+25%
$3/mo
In 10 yrs
$43/yr+56%
$4/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$27/yr $2/mo | $34/yr+25% $3/mo | $43/yr+56% $4/mo |
Yield-on-cost grows from 2.73% → 4.26% over 10yr
Analysis
Dividend Strengths
No strong strength signal stands out from the latest period pair.
Risks to Watch
High payout ratio
With 88.61% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.
Dividend exceeds free cash flow
Free cash flow covers only 0.41× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.