Aureus
FRed Flag

Williams Companies, Inc. (The)(WMB)

F

Financial data as of Dec 31, 2025Declining · Energy

FCF Margin6.7%Free Cash Flow / Revenue
Cash Conversion225.3%Operating CF / Net Income
Free Cash Flow$899.0M
Revenue$11.9B
Net Cash-$29.3BNet debt position
Debt / FCF36.5xElevated debt burden
Current Ratio0.53Tight short-term liquidity
YoY FCF Growth-200.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-2Extreme debt-to-FCF ratio (36.5x; 24.3x sector-adjusted)
→
-1Current ratio below 1.0 (0.53)
→
-1Significant YoY FCF decline (-200.0%)
→
-0.5Highly volatile FCF (consistency: 1.40)
→
+0.25Solid revenue growth (16.6% YoY)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (225%)

Concerns

  • Low FCF margin (6.7%)
  • Heavy debt position ($29.3B net debt, 36.5x FCF)
  • High debt-to-FCF ratio (36.5x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Significant YoY FCF decline (-200.0%)
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.1B stock-based compensation (10% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin6.7%
Net Margin21.9%
Operating CF Margin49.4%
CapEx Ratio41.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$29.3BNet debt position
Debt / FCF36.5xElevated debt burden
Current Ratio0.53Tight liquidity
Debt / Equity2.30High leverage

Quarterly FCF Trend

-200.0% YoYDeclining (-200.0%)

Free cash flow per quarter

Sector Comparison — Energy

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameWilliams Companies, Inc. (The)
SectorEnergy
Free Cash Flow$899.0M
Revenue$11.9B
Net Income$2.6B
Operating Cash Flow$5.9B
Capital Expenditure$5.0B
FCF Margin6.7%
Cash Conversion Rate225.3%
Net Margin21.9%
Total Debt$29.4B
Total Cash$63.0M
Net Cash-$29.3B
Current Ratio0.53
Debt / Equity2.30
Debt / FCF36.5x
YoY FCF Growth-200.0%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeF
Data SourceYahoo Finance

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