Williams Companies
Market Cap
US$29.3b
Last Updated
2021/03/05 23:36 UTC
Data Sources
Company Financials +
Executive Summary
The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. More Details
Rewards
Risk Analysis
Dividend of 6.76% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Average dividend payer with moderate growth potential.
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
Stable Share Price: WMB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: WMB's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
6.2%
WMB
9.8%
US Oil and Gas
-0.4%
US Market
1 Year Return
39.0%
WMB
24.7%
US Oil and Gas
36.3%
US Market
Return vs Industry: WMB exceeded the US Oil and Gas industry which returned 14% over the past year.
Return vs Market: WMB exceeded the US Market which returned 31.2% over the past year.
Shareholder returns
| WMB | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.2% | 9.8% | -0.4% |
| 30 Day | 10.7% | 23.2% | -1.3% |
| 90 Day | 7.9% | 29.9% | 4.9% |
| 1 Year | 51.0%39.0% | 33.5%24.7% | 39.2%36.3% |
| 3 Year | 3.8%-13.4% | -6.2%-19.4% | 48.7%39.2% |
| 5 Year | 100.0%51.5% | 11.8%-10.0% | 117.0%92.8% |
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
4 days ago | Simply Wall St
Should You Be Worried About The Williams Companies, Inc.'s (NYSE:WMB) 1.4% Return On Equity?3 weeks ago | Simply Wall St
Are Dividend Investors Getting More Than They Bargained For With The Williams Companies, Inc.'s (NYSE:WMB) Dividend?1 month ago | Simply Wall St
Williams Companies' (NYSE:WMB) Shareholders Are Down 32% On Their SharesValuation
Is Williams Companies undervalued compared to its fair value and its price relative to the market?
141.55x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WMB ($24.26) is trading above our estimate of fair value ($22.26)
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 (141.6x) compared to the US Oil and Gas industry average (11.7x).
PE vs Market: WMB is poor value based on its PE Ratio (141.6x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: WMB is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: WMB is overvalued based on its PB Ratio (2.5x) compared to the US Oil and Gas industry average (1.5x).
Next Steps
Future Growth
How is Williams Companies forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
43.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WMB's forecast earnings growth (43.2% per year) is above the savings rate (2%).
Earnings vs Market: WMB's earnings (43.2% per year) are forecast to grow faster than the US market (19.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WMB's revenue (0.5% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: WMB's revenue (0.5% 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 (14.2%).
Next Steps
Past Performance
How has Williams Companies performed over the past 5 years?
25.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WMB has a large one-off loss of $1.4B impacting its December 31 2020 financial results.
Growing Profit Margin: WMB's current net profit margins (2.7%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: WMB has become profitable over the past 5 years, growing earnings by 25.9% per year.
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 (-75.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (-38.8%).
Return on Equity
High ROE: WMB's Return on Equity (1.4%) is considered low.
Next Steps
Financial Health
How is Williams Companies's financial position?
Financial Position Analysis
Short Term Liabilities: WMB's short term assets ($1.4B) do not cover its short term liabilities ($2.3B).
Long Term Liabilities: WMB's short term assets ($1.4B) do not cover its long term liabilities ($27.3B).
Debt to Equity History and Analysis
Debt Level: WMB's debt to equity ratio (153.2%) is considered high.
Reducing Debt: WMB's debt to equity ratio has increased from 150.8% to 153.2% over the past 5 years.
Debt Coverage: WMB's debt is not well covered by operating cash flow (15.6%).
Interest Coverage: WMB's interest payments on its debt are not well covered by EBIT (2.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Williams Companies's current dividend yield, its reliability and sustainability?
6.76%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: WMB's dividend (6.76%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: WMB's dividend (6.76%) is in the top 25% of dividend payers in the US market (3.72%)
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 (933.6%), 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 (132.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Murray Armstrong (58 yo)
10.17yrs
Tenure
US$15,590,339
Compensation
Mr. Alan S. Armstrong, also known as Murray, has been Chief Executive Officer of WPZ GP LLC (formerly known as Access Midstream Partners GP, L.L.C.) since December 31, 2014. Mr. Armstrong has been the Chie...
CEO Compensation Analysis
Compensation vs Market: Murray's total compensation ($USD15.59M) is above average for companies of similar size in the US market ($USD10.58M).
Compensation vs Earnings: Murray's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 10.17yrs | US$15.59m | 0.10% $ 29.6m | |
| Senior VP & CFO | 3.5yrs | US$4.77m | 0.019% $ 5.5m | |
| Executive VP & COO | 4.08yrs | US$6.61m | 0.0016% $ 471.2k | |
| Senior Vice President of Corporate Strategic Development | 3.75yrs | US$5.27m | 0.021% $ 6.0m | |
| VP, Chief Accounting Officer | 1.17yrs | no data | 0.0024% $ 702.3k | |
| Assistant Director Investor Relations | no data | no data | no data | |
| Vice President of Investor Relations | 0.50yr | no data | no data | |
| Senior VP & General Counsel | 3.92yrs | no data | 0.013% $ 3.7m | |
| Senior VP & Chief Human Resource Officer | 2.42yrs | no data | 0.0046% $ 1.3m | |
| Senior Vice President of Gathering & Processing | 6.17yrs | no data | 0.015% $ 4.4m | |
| Senior Vice President of Transmission & Gulf of Mexico | 2.17yrs | no data | 0.0088% $ 2.6m | |
| Senior Vice President of Project Execution | 0.92yr | no data | 0.0046% $ 1.3m |
3.5yrs
Average Tenure
50yo
Average Age
Experienced Management: WMB's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 10.17yrs | US$15.59m | 0.10% $ 29.6m | |
| Independent Director | 0.25yr | no data | 0.00034% $ 99.5k | |
| Independent Chairman of the Board | 3.83yrs | US$485.01k | 0.0075% $ 2.2m | |
| Independent Director | 4.5yrs | US$300.00k | 0.0053% $ 1.6m | |
| Independent Director | 4.58yrs | US$295.00k | 0.0021% $ 605.8k | |
| Independent Director | 4.25yrs | US$280.00k | 0.0073% $ 2.1m | |
| Independent Director | 2.67yrs | US$275.00k | 0.0017% $ 491.6k | |
| Independent Director | 4.25yrs | US$275.00k | 0.000080% $ 23.4k | |
| Independent Director | 4.58yrs | US$300.00k | 0.0026% $ 760.9k | |
| Independent Director | 9.17yrs | US$295.00k | 0.0034% $ 989.1k | |
| Independent Director | 2.75yrs | US$285.00k | 0.0017% $ 506.3k | |
| Independent Director | 4.5yrs | US$325.00k | 0.0020% $ 588.2k |
4.4yrs
Average Tenure
63yo
Average Age
Experienced Board: WMB's board of directors are considered experienced (4.4 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.
Recent Insider Transactions
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$29.264b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WMB | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1968 |
| WMB | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1968 |
| WMB | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Jan 1968 |
| 0LXB | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1968 |
| W1MB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/05 23:36 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.