Data last refreshed 16 days ago — analysis may not reflect the latest market data

WMBWMB

US

CAUTIOUS

$74.34

P/E

32.64

PEG

1.48

FCF Yield

Rev Growth YoY

+10.7% YoY

Gross Margin

82.3%

Health Score

6/10

D/E Ratio

2.29

Confidence

MEDIUM


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Business Snapshot

Williams Companies (WMB) is a midstream energy infrastructure company primarily engaged in natural gas gathering, processing, transportation, and storage across the United States. It operates in the North American natural gas market, a sector driven by growing LNG export demand and power generation needs, where it holds a significant position due to its extensive pipeline network connecting major supply basins to demand centers. The company's market cap and TTM revenue are not available for this analysis, but its substantial infrastructure footprint classifies it as a large-cap player in the energy space. A defining characteristic is its highly integrated and regulated asset base, which provides a stable, fee-based revenue stream that is less exposed to volatile commodity prices.

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Financial Health

Gross margin is a robust 82.3%, highlighting the low variable cost nature of its pipeline and processing operations. Net margin stands at a solid 23.4%, indicating strong profitability relative to revenue...

Risk Assessment

  • VALUATION — P/E of 32.64x trades at a 48% premium to the sector average of 22x, leaving the stock vulnerable to multiple compression if growth disappoints.
  • DEBT / LIQUIDITY — Debt-to-equity of 2.29x and a current ratio of 0.53x indicate a heavily leveraged balance sheet and potential difficulty covering short-term obligations.
  • FCF / CASH BURN — Free cash flow data is unavailable, preventing an assessment of the company's ability to service its large debt load and fund its dividend sustainably.
  • TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
  • INSIDER — Insiders have sold 3 times versus 0 buys in the last 90 days, a net selling pattern that often signals a lack of confidence from those closest to the business....

Gross margin is a robust 82.3%, highlighting the low variable cost nature of its pipeline and processing operations. Net margin stands at a solid 23.4%, indicating strong profitability relative to revenue. However, the balance sheet is a key concern, with a high debt-to-equity ratio of 2.29x and a very low current ratio of 0.53x, pointing to significant financial leverage and potential liquidity constraints. Free cash flow and FCF yield data are unavailable, so the company's true cash generation and its ability to cover capital expenditures and dividends cannot be fully assessed. Overall, the company exhibits excellent operational margins but carries a stretched balance sheet that limits financial flexibility and increases vulnerability to rising interest rates or a downturn.

- VALUATION — P/E of 32.64x trades at a 48% premium to the sector average of 22x, leaving the stock vulnerable to multiple compression if growth disappoints. - DEBT / LIQUIDITY — Debt-to-equity of 2.29x and a current ratio of 0.53x indicate a heavily leveraged balance sheet and potential difficulty covering short-term obligations. - FCF / CASH BURN — Free cash flow data is unavailable, preventing an assessment of the company's ability to service its large debt load and fund its dividend sustainably. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER — Insiders have sold 3 times versus 0 buys in the last 90 days, a net selling pattern that often signals a lack of confidence from those closest to the business.

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Full 8-section analysis includes:

Financial Health
Growth Momentum
Valuation Snapshot
Risk Flags
Sentiment & News
Technical Snapshot
Full Verdict with Confidence Rating
Last updated 400 hours ago · Data sourced from FMP & Finnhub · Not financial advice