Rankings Oil & gas Williams Companies
Williams Companies
63
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Multiples vs own history and peers−20
- Cash flow−7
- Debt−5
Strengths
- Estimates+2
- Contracted and regulated earnings+2
How the score is built
From 100 to 63, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 71.19 USD
- Median analyst target
- 85.00 USD
- Upside to median
- +19.4%
- Analysts
- 25
- Target range
- 69.00 – 103.00 USD
- 52-week change
- +23%
- P/E (trailing)
- 28.0
- Forward P/E
- 26.9
- PEG
- 1.32
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−4 of −30
- −1ROICROIC is 7.95% vs a WACC of 6.6%. It has risen from 5.4% (2021) to 6.5% (2024) and 7.8% (2025), but the spread over the cost of capital is only about 1.4 percentage points in a very capital-heavy business.
- −1Quality of earningsThe TTM result (EPS $2.51) is lifted by gains of about $320m in total from the sale of South Mansfield ($194m, January) and Brazos Permian II ($126m, June). Adjusted EPS in Q2 was $0.50 (+8%), and consensus for 2026 is $2.42.
- −2Capital allocationGrowth investments of $7.3–7.9bn in 2026 clearly exceed operating cash flow ($6.0bn TTM), and a growing share goes to Power Innovation: behind-the-meter gas-fired power plants at data centres, outside the core pipeline business. The Blackstone JV ($5.34bn) shares the risk, but also the returns.
Price
Today's multiples against the company's own history and its peers. · 1 finding−20 of −35
- −20Multiples vs own history and peersP/E 27.5 vs 13.3–29.7 in 2021–25 (average 22.3); forward P/E 28.7 is above the whole 5-year range of 18.2–27.2; EV/EBITDA 16.4 vs 10.9–16.9 (average 13.7); P/B 6.4 is a record (2.2–4.9). Peers trade at about 15 times earnings according to Simply Wall St. That is a growth price for a leveraged pipeline business with about 11% EBITDA growth.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−17 of −35
- −7Cash flowFCF has fallen from $3.37bn (2023) to 2.30bn (2024), 0.90bn (2025) and −0.17bn TTM, and analysts expect −$1.78bn in 2026. The $2.5bn annual dividend is therefore effectively paid with new debt (net borrowing $2.24bn TTM). Management's AFFO coverage of 2.26x ignores the growth investments.
- −5DebtDebt $30.8bn (debt/EBITDA 4.33, interest cover 3.15x, current ratio 0.48, Altman Z 1.18). On 8/9 $2.75bn of bonds were issued at 5.0–6.4%, and the Momentum acquisition is funded with about $3.5bn of cash/debt. Management itself guides to leverage of about 3.75x.
- −3Regulation and permits (NESE)On 8/9/2026 the federal appeals court (Third Circuit) vacated New Jersey's water-quality permit for NESE, a roughly $1bn project under construction with a pipeline under Raritan Bay. The case has been sent back to NJDEP, and environmental groups are pressing the governor to stop the project entirely.
- −2Insider tradingOnly sales in 2026: 14 sales totalling about $9.2m, including CFO John Porter ($3.8m in May), COO Larry Larsen ($0.9m) and the chief accounting officer ($0.8m). No purchases. The amounts are small relative to market value.
Plus
Only documented strengths. · 2 findings+4 of +15
- +2EstimatesEBITDA guidance for 2026 raised to $8.3–8.5bn (+$200m at the midpoint, partly from Momentum), and the long-term EBITDA growth target has been lifted from 10+% to 11+% a year to 2030. Adjusted EBITDA rose 6% in Q2 and 10% year to date.
- +2Contracted and regulated earningsThe Transco system (Transmission & Gulf of Mexico, $5.1bn of revenue) is FERC-regulated with long-term capacity contracts, and management describes the project portfolio as fully contracted to beyond 2030. That gives visibility and a low beta (0.62).
Caveats
What the score does not capture, or where the data is weak.
Negative FCF (−$0.17bn TTM, analysts expect about −$1.8bn in 2026), so the dividend is debt-funded while growth investment ($7.3–7.9bn) continues. The share trades near the top of its own 5-year history on all multiples. The NESE pipeline's water permit in New Jersey has been revoked (8/9), and the Momentum acquisition (up to $5.5bn) plus $2.75bn of new bonds add to debt.
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