Williams Companies Inc (WMB) Stock Analysis
Verdict: WATCH (do not buy)
AI power demand drives WMB's long-term gas growth, but a 28.5x P/E peer premium and 4.1x Net Debt/EBITDA limit near-term upside.
Investment score: 56/100
Analysis as of
Is Williams Companies Inc stock worth reviewing? The TradeMates thesis
Williams Companies benefits from secular natural gas demand and strong 40.3% operating margins, but trades at a rich valuation premium to peers with significant debt leverage.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 65/100 (weight 15%)
- Technical Momentum: 58/100 (weight 15%)
- Earnings Quality: 72/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Williams Companies Inc opportunities and risks
What speaks for WMB
- Secular AI Data Center Power Demand
What speaks against WMB
- Substantial Valuation Premium over Peers
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| WMB | 28.5x | 7.2x | 15.9x | 73.6% | 25.2% | -0.2% |
| EPD | 13.4x | 1.4x | 11.1x | 13.2% | 10.8% | 4.1% |
| ET | 13.0x | 0.7x | 9.7x | 24.1% | 5.6% | 7.3% |
| KMI | 20.3x | 3.9x | 12.7x | 54.9% | 19.3% | 5.5% |
| TRGP | 27.7x | 3.7x | 17.2x | 36.6% | 13.5% | 1.2% |
| MPLX | 12.8x | 4.7x | 11.6x | 52.2% | 36.7% | 7.3% |
| Peer median | 13.4x | 3.7x | 11.6x | 36.6% | 13.5% | 5.5% |
Frequently asked questions about Williams Companies Inc (WMB)
Is WMB stock a good investment?
The TradeMates model rates Williams Companies Inc as WATCH (do not buy) with an investment score of 56/100. Williams Companies benefits from secular natural gas demand and strong 40.3% operating margins, but trades at a rich valuation premium to peers with significant debt leverage. This is algorithmic model output, not personal investment advice.
Is WMB stock a buy?
The TradeMates model verdict for WMB is WATCH (do not buy) with an investment score of 56/100. Treat this as a model signal to review, not a personal buy recommendation.