Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin37.6%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin28.5%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt35.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$30.7B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$686M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book6.90x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$244M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income157.1%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$2.8B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About The Williams Companies, Inc.
The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission, Power & Gulf, Northeast G&P, West, and Gas & NGL Marketing Services segments. The Transmission, Power & Gulf segment comprises Transco, NWP, and Mountain West interstate natural gas pipelines, and their related natural gas storage facilities, as well as natural gas gathering and processing; and crude oil production handling and transportation assets in the Gulf Coast region. The Northeast G&P segment engages in the midstream gathering, processing, and fractionation activities in the Marcellus Shale region primarily in Pennsylvania and New York, and the Utica Shale region of eastern Ohio. The West segment consists of gas gathering, processing, and treating operations in the Rocky Mountain region of Colorado and Wyoming, the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of South Texas, the Haynesville Shale region of northwest Louisiana, the Mid-Continent region that includes the Anadarko and Permian basins, and the DJ Basin of Colorado; and operates natural gas liquid (NGL) fractionation and storage assets in central Kansas near Conway. The Gas & NGL Marketing Services segment provides wholesale marketing, trading, storage, and transportation of natural gas for natural gas utilities, municipalities, power generators, and producers; asset management services; and transports and markets NGLs. The company owns and operates approximately 32,000 miles of pipelines. The Williams Companies, Inc. was founded in 1908 and is headquartered in Tulsa, Oklahoma.
The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission, Power & Gulf, Northeast G&P, West, and Gas & NGL Marketing Services segments. The Transmission, Power & Gulf segment comprises Transco, NWP, and Mountain West interstate natural gas pipelines, and their related natural gas storage facilities, as well as natural gas gathering and processing; and crude oil production handling and transportation assets in the Gulf Coast region. The Northeast G&P segment engages in the midstream gathering, processing, and fractionation activities in the Marcellus Shale region primarily in Pennsylvania and New York, and the Utica Shale region of eastern Ohio. The West segment consists of gas gathering, processing, and treating operations in the Rocky Mountain region of Colorado and Wyoming, the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of South Texas, the Haynesville Shale region of northwest Louisiana, the Mid-Continent region that includes the Anadarko and Permian basins, and the DJ Basin of Colorado; and operates natural gas liquid (NGL) fractionation and storage assets in central Kansas near Conway. The Gas & NGL Marketing Services segment provides wholesale marketing, trading, storage, and transportation of natural gas for natural gas utilities, municipalities, power generators, and producers; asset management services; and transports and markets NGLs. The company owns and operates approximately 32,000 miles of pipelines. The Williams Companies, Inc. was founded in 1908 and is headquartered in Tulsa, Oklahoma.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering The Williams Companies, Inc. at $73.12.
The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.
At $73.12, the stock trades at a 466% premium to its Graham Number of $12.92. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Gross Profit %
62.3%▼
62.9%•
N/A
Operating Margin %
37.6%▼
39.4%•
N/A
Net Income %
28.5%▲
23.0%•
N/A
Diluted EPS
0.70•
N/A•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$59.6B
$58.6B
N/A
Total Debt
$30.3B▲
$29.4B•
N/A
Working Capital
-$686M▲
-$2.9B•
N/A
Years to Pay Debt
35.03
40.04
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
$244M▲
-$405M•
N/A
Owner Earnings
$2.8B
$3.3B
N/A
CapEx % of Net Income
157.1%
269.9%
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
43,481
-57,821
Tax Rate For Calcs
0
0
Normalized EBITDA
1,910,000
2,222,000
Total Unusual Items
206,000
-241,000
Total Unusual Items Excluding Goodwill
206,000
-241,000
Net Income From Continuing Operation Net Minority Interest
865,000
734,000
Reconciled Depreciation
584,000
593,000
Reconciled Cost Of Revenue
1,142,000
1,186,000
EBITDA
2,116,000
1,981,000
EBIT
1,532,000
1,388,000
Net Interest Income
-376,000
-331,000
Interest Expense
376,000
371,000
Normalized Income
702,481
917,179
Net Income From Continuing And Discontinued Operation
865,000
734,000
Total Expenses
1,891,000
1,938,000
Total Operating Income As Reported
1,321,000
1,048,000
Diluted Average Shares
1,226,000
Basic Average Shares
1,223,000
Diluted EPS
0
Basic EPS
0
Diluted NI Availto Com Stockholders
864,000
733,000
Net Income Common Stockholders
864,000
733,000
Preferred Stock Dividends
1,000
1,000
1,000
Net Income
865,000
734,000
Minority Interests
-47,000
-39,000
Net Income Including Noncontrolling Interests
912,000
773,000
Net Income Continuous Operations
912,000
773,000
Tax Provision
244,000
244,000
Pretax Income
1,156,000
1,017,000
Other Income Expense
393,000
88,000
Other Non Operating Income Expenses
26,000
18,000
Special Income Charges
182,000
149,000
Gain On Sale Of Business
182,000
149,000
Earnings From Equity Interest
161,000
311,000
Gain On Sale Of Security
24,000
-29,000
Net Non Operating Interest Income Expense
-376,000
-331,000
Interest Expense Non Operating
376,000
371,000
Operating Income
1,139,000
1,260,000
Operating Expense
749,000
752,000
Other Operating Expenses
-9,000
-24,000
Selling General And Administration
193,000
191,000
Gross Profit
1,888,000
2,012,000
Cost Of Revenue
1,142,000
1,186,000
Total Revenue
3,030,000
3,198,000
Operating Revenue
3,389,000
3,108,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
39,000
39,000
Ordinary Shares Number
1,223,000
1,222,000
Share Issued
1,262,000
1,261,000
Net Debt
29,352,000
29,298,000
Total Debt
30,302,000
29,393,000
Tangible Book Value
6,287,000
6,009,000
Invested Capital
43,259,000
42,133,000
Working Capital
-686,000
-2,862,000
Net Tangible Assets
6,322,000
6,044,000
Capital Lease Obligations
32,000
26,000
Common Stock Equity
12,957,000
12,772,000
Preferred Stock Equity
35,000
35,000
Total Capitalization
43,046,000
40,123,000
Total Equity Gross Minority Interest
15,162,000
14,995,000
Minority Interest
2,170,000
2,188,000
Stockholders Equity
12,992,000
12,807,000
Gains Losses Not Affecting Retained Earnings
125,000
127,000
Other Equity Adjustments
125,000
127,000
Treasury Stock
1,180,000
1,180,000
Retained Earnings
-12,017,000
-12,237,000
Additional Paid In Capital
24,767,000
24,801,000
Capital Stock
1,297,000
1,296,000
Common Stock
1,262,000
1,261,000
Preferred Stock
35,000
35,000
Total Liabilities Net Minority Interest
44,407,000
43,578,000
Total Non Current Liabilities Net Minority Interest
40,401,000
37,472,000
Other Non Current Liabilities
4,942,000
4,986,000
Non Current Deferred Liabilities
5,405,000
5,170,000
Non Current Deferred Taxes Liabilities
5,405,000
5,170,000
Long Term Debt And Capital Lease Obligation
30,054,000
27,316,000
Long Term Debt
30,054,000
27,316,000
Current Liabilities
4,006,000
6,106,000
Other Current Liabilities
1,487,000
912,000
Current Deferred Liabilities
165,000
170,000
Current Deferred Revenue
165,000
170,000
Current Debt And Capital Lease Obligation
248,000
2,077,000
Current Capital Lease Obligation
32,000
26,000
Current Debt
248,000
2,045,000
Other Current Borrowings
248,000
1,345,000
Commercial Paper
0
700,000
Pensionand Other Post Retirement Benefit Plans Current
283,000
285,000
Current Provisions
103,000
91,000
Payables And Accrued Expenses
2,271,000
2,566,000
Current Accrued Expenses
342,000
350,000
Interest Payable
342,000
350,000
Payables
2,271,000
2,224,000
Accounts Payable
2,271,000
2,224,000
Total Assets
59,569,000
58,573,000
Total Non Current Assets
56,249,000
55,329,000
Other Non Current Assets
1,925,000
2,011,000
Investments And Advances
4,520,000
4,559,000
Goodwill And Other Intangible Assets
6,670,000
6,763,000
Other Intangible Assets
6,297,000
6,743,000
Goodwill
466,000
466,000
Net PPE
43,134,000
41,996,000
Accumulated Depreciation
-20,479,000
-20,014,000
Gross PPE
63,613,000
62,010,000
Construction In Progress
3,604,000
2,085,000
Other Properties
9,738,000
9,413,000
Machinery Furniture Equipment
48,668,000
45,897,000
Current Assets
3,320,000
3,244,000
Other Current Assets
260,000
256,000
Hedging Assets Current
172,000
209,000
Assets Held For Sale Current
0
318,000
1,000
Inventory
262,000
314,000
Receivables
1,676,000
2,084,000
Other Receivables
253,000
Accounts Receivable
1,423,000
2,084,000
Allowance For Doubtful Accounts Receivable
-1,000
-1,000
Gross Accounts Receivable
2,085,000
1,864,000
Cash Cash Equivalents And Short Term Investments
950,000
63,000
Cash And Cash Equivalents
950,000
63,000
Cash Flow
2026
2025
2024
Free Cash Flow
244,000
-405,000
Repayment Of Debt
-1,109,000
-1,094,000
Issuance Of Debt
2,768,000
1,946,000
Issuance Of Capital Stock
8,000
0
Capital Expenditure
-1,359,000
-1,981,000
End Cash Position
950,000
63,000
Beginning Cash Position
63,000
70,000
Changes In Cash
887,000
-7,000
Financing Cash Flow
168,000
704,000
Cash Flow From Continuing Financing Activities
168,000
704,000
Net Other Financing Charges
-158,000
-67,000
Cash Dividends Paid
-642,000
-610,000
Common Stock Dividend Paid
-642,000
-610,000
Net Common Stock Issuance
8,000
0
Common Stock Issuance
8,000
0
Net Issuance Payments Of Debt
960,000
1,381,000
Net Short Term Debt Issuance
-699,000
529,000
Net Long Term Debt Issuance
1,659,000
852,000
Long Term Debt Payments
-1,109,000
-1,094,000
Long Term Debt Issuance
2,768,000
1,946,000
Investing Cash Flow
-884,000
-2,287,000
Cash Flow From Continuing Investing Activities
-884,000
-2,287,000
Net Other Investing Changes
87,000
13,000
Net Business Purchase And Sale
19,000
-319,000
Sale Of Business
48,000
0
0
Purchase Of Business
-29,000
-319,000
Net PPE Purchase And Sale
369,000
-26,000
Capital Expenditure Reported
-1,359,000
-1,955,000
Operating Cash Flow
1,603,000
1,576,000
Cash Flow From Continuing Operating Activities
1,603,000
1,576,000
Dividend Received Cfo
223,000
200,000
Change In Working Capital
-257,000
-124,000
Change In Other Working Capital
-212,000
-63,000
Change In Other Current Liabilities
-317,000
75,000
Change In Other Current Assets
-9,000
-28,000
Change In Payables And Accrued Expense
-194,000
474,000
Change In Accrued Expense
Change In Payable
-194,000
474,000
Change In Account Payable
-194,000
474,000
Change In Inventory
50,000
21,000
Change In Receivables
425,000
-603,000
Changes In Account Receivables
425,000
-603,000
Stock Based Compensation
22,000
23,000
Asset Impairment Charge
2,000
215,000
Deferred Tax
235,000
302,000
Deferred Income Tax
235,000
302,000
Depreciation Amortization Depletion
584,000
593,000
Depreciation And Amortization
593,000
565,000
Operating Gains Losses
-118,000
-406,000
Earnings Losses From Equity Investments
-161,000
-311,000
Gain Loss On Investment Securities
225,000
-95,000
Gain Loss On Sale Of Business
0
127,000
Net Income From Continuing Operations
912,000
773,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $3.0B▼ $3.0B-0.6%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 59.7%▲ 62.3%+2.6pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 37.4%▲ 37.6%+0.2pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 22.7%▲ 28.5%+5.9pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$3.0B/qtr (≈$12.1B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.83x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$244M
vs Positive
Operating Cash Flow
$1.6B
Latest quarter · Buffett's cash reality check
ROIC
1.6%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
5.9x
Net Assets: $15.2B
Asset Context — Oil & Gas Midstream
Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.
Peers & Industry
No auto-detected peers for Oil & Gas Midstream. You can manually compare WMB against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.45%
Low — management has little skin in the game
Return on Equity (ROE)
6.7%
Weak — poor returns on equity
Return on Assets (ROA)
1.5%
Poor — assets are not generating adequate returns
Debt Trend YoY
+3.1% YoY
Debt is roughly stable
Leadership Team
Chad Zamarin
CEO, President & Director
Age 48
Pay: $2,351,960
0.272% of net income
John Porter CPA
Executive VP & CFO
Age 55
Pay: $1,649,221
0.191% of net income
Larry Larsen
Executive VP & COO
Age 50
Pay: $1,581,423
0.183% of net income
Robert Wingo
Executive Vice President of Corporate Strategic Development
Age 46
Pay: $1,925,077
0.223% of net income
Danilo Marcelo Juvane
Vice President of Investor Relations
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
9.16%
111,870,176
Vanguard Capital Management LLC
6.50%
79,356,001
State Street Corporation
5.98%
72,988,408
Bank of America Corporation
3.64%
44,461,236
Vanguard Portfolio Management LLC
3.54%
43,269,040
Morgan Stanley
2.76%
33,740,119
Geode Capital Management, LLC
2.42%
29,593,870
ClearBridge Investments, LLC
1.90%
23,238,857
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.60
Low volatility — more stable than the market
Short Interest
2.0% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
2.00x
Moderate leverage
Current Ratio
0.83x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $55.82Current: $73.12High: $80.08
Currently at 71% of 52-week range
The Williams Companies, Inc. (WMB) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $12.92. Margin of safety: 0%. Gross profit margin: 62.3%. Operating margin: 37.6%. Net margin: 28.5%. Market cap: $89.4B. Sector: Energy. Industry: Oil & Gas Midstream. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.