NYSE:WMB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

WMB

-1.7%

US Oil and Gas

0.5%

US Market


1 Year Return

-12.3%

WMB

-21.6%

US Oil and Gas

6.8%

US Market

Return vs Industry: WMB exceeded the US Oil and Gas industry which returned -21.6% over the past year.

Return vs Market: WMB underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

WMBIndustryMarket
7 Day-0.3%-1.7%0.5%
30 Day-6.8%-6.4%-0.8%
90 Day-15.6%-9.4%-0.9%
1 Year-7.2%-12.3%-18.7%-21.6%9.2%6.8%
3 Year-11.6%-23.3%-8.2%-16.4%45.6%36.2%
5 Year-42.4%-56.9%-24.8%-35.2%63.2%45.4%

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

Valuation

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

440.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WMB ($23.04) is trading above our estimate of fair value ($22.53)

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 (440.3x) compared to the Oil and Gas industry average (9.8x).

PE vs Market: WMB is poor value based on its PE Ratio (440.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: WMB is poor value based on its PEG Ratio (36.6x)


Price to Book Ratio

PB vs Industry: WMB is overvalued based on its PB Ratio (2x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Williams Companies forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMB's forecast earnings growth (12% per year) is above the savings rate (2.7%).

Earnings vs Market: WMB's earnings (12% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: WMB's revenue (6.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WMB's revenue (6.2% 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 (11.9%).


Next Steps

Past Performance

How has Williams Companies performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WMB's earnings have declined by -5.9% per year over the past 5 years.

Accelerating Growth: WMB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WMB had negative earnings growth (-97%) over the past year, making it difficult to compare to the Oil and Gas industry average (22.6%).


Return on Equity

High ROE: WMB's Return on Equity (1.1%) is considered low.


Return on Assets

ROA vs Industry: WMB's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: WMB has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Williams Companies's financial position?


Financial Position Analysis

Short Term Liabilities: WMB's short term assets ($2.0B) do not cover its short term liabilities ($3.4B)

Long Term Liabilities: WMB's short term assets (2.0B) do not cover its long term liabilities (26.0B)


Debt to Equity History and Analysis

Debt Level: WMB's debt to equity ratio (130.4%) is considered high

Reducing Debt: WMB's debt to equity ratio has reduced from 135.9% to 130.4% over the past 5 years.

Debt Coverage: WMB's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: WMB's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: WMB has a high level of physical assets or inventory.

Debt Coverage by Assets: WMB's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

6.60%

Current Dividend Yield


Dividend Yield vs Market

company6.6%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years7.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WMB's dividend (6.6%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WMB's dividend (6.6%) is in the top 25% of dividend payers in the US market (3.73%)

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 (2751.8%), 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 (143.1% payout ratio).


Next Steps

Management

What is the CEO of Williams Companies's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Murray Armstrong (57yo)

8.8yrs

Tenure

US$10,691,375

Compensation

Mr. Alan S. Armstrong, also known as Murray, has been Chief Executive Officer of Access Midstream Partners GP, L.L.C. since December 31, 2014. Mr. Armstrong has been the Chief Executive Officer and Preside ...


CEO Compensation Analysis

Compensation vs. Market: Murray's total compensation ($USD10.69M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.7yrs

Average Tenure

52yo

Average Age

Experienced Management: WMB's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: WMB's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: WMB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$229,86323 Aug 19
Stephen Bergstrom
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceUS$22.99
BuyUS$232,19115 Aug 19
Michael Creel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$23.22
BuyUS$94,40009 Aug 19
Terence Wilson
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares4,000
Max PriceUS$23.60
BuyUS$234,65308 Aug 19
Alan Armstrong
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$23.47
BuyUS$232,39607 Aug 19
John Chandler
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares10,000
Max PriceUS$23.24
BuyUS$239,30007 Aug 19
Stephen Chazen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$23.93
SellUS$130,27530 May 19
Ted Timmermans
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares5,000
Max PriceUS$26.06
BuyUS$273,27521 May 19
Stephen Chazen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$27.33
SellUS$263,36021 Feb 19
Kathleen Cooper
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,615
Max PriceUS$27.39
SellUS$249,85630 Nov 18
Kathleen Cooper
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,760
Max PriceUS$25.60
BuyUS$64,21806 Nov 18
Chad Zamarin
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Strategic Development
Shares2,500
Max PriceUS$25.69
BuyUS$63,84202 Nov 18
Shio Chau Dunn
EntityIndividual
Shares2,500
Max PriceUS$25.54
BuyUS$644,28302 Nov 18
Michael Creel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$25.78
BuyUS$259,42202 Nov 18
John Chandler
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares10,000
Max PriceUS$25.94
BuyUS$25,75002 Nov 18
Terence Wilson
EntityIndividual
Role
Chief Legal Officer
Senior VP & General Counsel
Shares1,000
Max PriceUS$25.75

Ownership Breakdown


Management Team

  • Murray Armstrong (57yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$10.69m
  • John Chandler (49yo)

    Senior VP & CFO

    • Tenure: 2.1yrs
    • Compensation: US$3.70m
  • Ted Timmermans (62yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 14.3yrs
  • Mike Dunn (53yo)

    Executive VP & COO

    • Tenure: 2.7yrs
    • Compensation: US$5.10m
  • Chad Zamarin (42yo)

    Senior Vice President of Corporate Strategic Development

    • Tenure: 2.3yrs
    • Compensation: US$3.72m
  • Jim Scheel (54yo)

    Senior Vice President of Northeast Gathering & Processing

    • Tenure: 5.8yrs
    • Compensation: US$2.56m
  • Terence Wilson (52yo)

    Senior VP & General Counsel

    • Tenure: 2.5yrs
  • John Porter (49yo)

    Vice President of Enterprise Financial Planning & Analysis and Investor Relations

    • Tenure: 14.8yrs
  • Brett Krieg

    Assistant Director Investor Relations

    • Tenure: 0yrs
  • Debbie Cowan (41yo)

    Senior VP & Chief Human Resource Officer

    • Tenure: 1yrs

Board Members

  • Steve Bergstrom (62yo)

    Independent Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: US$505.01k
  • Steve Chazen (72yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$285.00k
  • Scott Sheffield (66yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$290.00k
  • Mike Creel (65yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$275.00k
  • Casey Cogut (72yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$285.00k
  • Bill Spence (62yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$305.00k
  • Murray Armstrong (57yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$10.69m
  • Murray Smith (69yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$295.50k
  • Peter Ragauss (61yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$315.00k
  • Kathleen Cooper (74yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$306.00k

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$27.925b
  • Shares outstanding: 1.21b
  • Website: https://co.williams.com

Number of Employees


Location

  • The Williams Companies, Inc.
  • One Williams Center
  • Tulsa
  • Oklahoma
  • 74172
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMBNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
WMBDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
0LXBLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968

Biography

The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The company’s Northeast G&P segment engages in the natural gas gathering, compression, and processi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:46
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.