Williams Companies: 30% Total Return Year-to-Date, Undervalued by 5.9%?

Williams Companies has delivered a 30.7% total return over the past year and a 250% surge over the past five years. Analysts expect annual revenue and net income to climb by 8.6% and 10.9%, respectively. The valuation score is 1 out of 6, indicating the company is undervalued on one standard measure. A discounted cash flow model estimates an intrinsic value of $60.65 per share, suggesting the stock is 5.9% undervalued compared to its current market price of $57.07.

Williams Companies, Inc. (NYSE: WMB) has demonstrated impressive financial performance, with a total return of 30.7% over the past year and a staggering 250% surge over the past five years. This robust growth has been driven by a 19% year-over-year increase in quarterly revenue and a 16.23% return on equity, as reported in the latest earnings release [1].

Analysts remain optimistic about Williams Companies' future prospects. They expect annual revenue and net income to climb by 8.6% and 10.9%, respectively, over the coming year. Despite these encouraging forecasts, the company's valuation score is 1 out of 6, indicating that it is undervalued on one standard measure [1]. A discounted cash flow model estimates an intrinsic value of $60.65 per share, suggesting that the stock is 5.9% undervalued compared to its current market price of $57.07 [1].

Investor sentiment towards Williams Companies is mixed, with 86.44% of the stock held by hedge funds and other institutional investors. Some key institutional investors have adjusted their holdings in the past quarter. Credit Agricole S A, for instance, decreased its holdings by 8.4%, selling 37,337 shares, while other hedge funds such as Van Lanschot Kempen Investment Management N.V. and BI Asset Management Fondsmaeglerselskab A S increased their stakes [1].

Williams Companies recently reported earnings per share of $0.46 for the last quarter, missing estimates by $0.03, but this was accompanied by a 19% year-over-year increase in revenue. The company also declared a quarterly dividend of $0.50 per share, set to be paid on September 29th, with a 3.5% dividend yield based on the current payout ratio of 100.50% [1].

The stock has experienced some volatility, trading down $0.8110 to $56.9890 on Friday, July 19th, but it remains within its 1-year low of $43.98 and high of $63.45. The company has a market capitalization of $69.49 billion, a price-to-earnings ratio of 28.64, a PEG ratio of 1.93, and a beta of 0.66 [1].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-williams-companies-inc-the-wmb-shares-sold-by-credit-agricole-s-a-2025-08-20/