WMB

Williams CompaniesNYSE:WMB Stock Report

Market Cap

US$30.7b

7D

4.1%

1Y

21.9%

Updated

19 Sep, 2021

Data

Company Financials +
WMB fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance5/6
Financial Health1/6
Dividends4/6

WMB Overview

The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States.

Share Price & News

How has Williams Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WMB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WMB's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.1%

WMB

2.8%

US Oil and Gas

-0.6%

US Market


1 Year Return

21.9%

WMB

52.5%

US Oil and Gas

33.8%

US Market

Return vs Industry: WMB underperformed the US Oil and Gas industry which returned 52.5% over the past year.

Return vs Market: WMB underperformed the US Market which returned 33.8% over the past year.


Shareholder returns

WMBIndustryMarket
7 Day4.1%2.8%-0.6%
30 Day5.2%7.9%1.0%
90 Day-5.5%-8.8%3.4%
1 Year30.3%21.9%61.4%52.5%35.8%33.8%
3 Year11.3%-9.3%-19.5%-31.1%60.0%50.1%
5 Year11.3%-16.7%-3.6%-23.3%123.0%98.7%

Long-Term Price Volatility Vs. Market

How volatile is Williams Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Williams Companies Fundamentals Summary

How do Williams Companies's earnings and revenue compare to its market cap?
WMB fundamental statistics
Market CapUS$30.71b
Earnings (TTM)US$1.15b
Revenue (TTM)US$8.92b

26.7x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WMB income statement (TTM)
RevenueUS$8.92b
Cost of RevenueUS$3.99b
Gross ProfitUS$4.93b
ExpensesUS$3.77b
EarningsUS$1.15b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.95
Gross Margin55.22%
Net Profit Margin12.91%
Debt/Equity Ratio162.9%

How did WMB perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

171%

Payout Ratio

Valuation

Is Williams Companies undervalued compared to its fair value and its price relative to the market?

26.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WMB ($25.28) is trading above our estimate of fair value ($23.33)

Significantly Below Fair Value: WMB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WMB is poor value based on its PE Ratio (26.7x) compared to the US Oil and Gas industry average (18.2x).

PE vs Market: WMB is poor value based on its PE Ratio (26.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WMB is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: WMB is overvalued based on its PB Ratio (2.7x) compared to the US Oil and Gas industry average (1.8x).


Future Growth

How is Williams Companies forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMB's forecast earnings growth (8.3% per year) is above the savings rate (2%).

Earnings vs Market: WMB's earnings (8.3% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: WMB's earnings are forecast to grow, but not significantly.

Revenue vs Market: WMB's revenue (1.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: WMB's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WMB's Return on Equity is forecast to be low in 3 years time (18.9%).


Past Performance

How has Williams Companies performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMB has high quality earnings.

Growing Profit Margin: WMB's current net profit margins (12.9%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: WMB has become profitable over the past 5 years, growing earnings by 20.2% per year.

Accelerating Growth: WMB's earnings growth over the past year (705.6%) exceeds its 5-year average (20.2% per year).

Earnings vs Industry: WMB earnings growth over the past year (705.6%) exceeded the Oil and Gas industry -19.4%.


Return on Equity

High ROE: WMB's Return on Equity (8.5%) is considered low.


Financial Health

How is Williams Companies's financial position?


Financial Position Analysis

Short Term Liabilities: WMB's short term assets ($2.6B) do not cover its short term liabilities ($3.8B).

Long Term Liabilities: WMB's short term assets ($2.6B) do not cover its long term liabilities ($27.5B).


Debt to Equity History and Analysis

Debt Level: WMB's debt to equity ratio (162.9%) is considered high.

Reducing Debt: WMB's debt to equity ratio has reduced from 175.6% to 162.9% over the past 5 years.

Debt Coverage: WMB's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: WMB's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

What is Williams Companies's current dividend yield, its reliability and sustainability?

6.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WMB's dividend (6.49%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: WMB's dividend (6.49%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: WMB's dividends per share have been stable in the past 10 years.

Growing Dividend: WMB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (170.8%), WMB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WMB's dividends in 3 years are not forecast to be well covered by earnings (124.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Murray Armstrong (59 yo)

10.67yrs

Tenure

US$12,171,958

Compensation

Mr. Alan S. Armstrong, also known as Murray, has been Chief Executive Officer of WPZ GP LLC since December 31, 2014. Mr. Armstrong has been the Chief Executive Officer and President of The Williams Compani...


CEO Compensation Analysis

Compensation vs Market: Murray's total compensation ($USD12.17M) is about average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Murray's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WMB's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: WMB's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Williams Companies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Williams Companies, Inc.
  • Ticker: WMB
  • Exchange: NYSE
  • Founded: 1908
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$30.714b
  • Shares outstanding: 1.21b
  • Website: https://www.williams.com

Number of Employees


Location

  • The Williams Companies, Inc.
  • One Williams Center
  • Suite 4700
  • Tulsa
  • Oklahoma
  • 74102-2400
  • United States

Listings


Biography

The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission & Gulf of Mexico, Northeast G&P,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.