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

3.0%

NYSE:WMB

2.1%

US Oil and Gas

2.1%

US Market


1 Year Return

-21.6%

NYSE:WMB

-23.1%

US Oil and Gas

-0.04%

US Market

WMB outperformed the Oil and Gas industry which returned -22.7% over the past year.

WMB underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

WMBIndustryMarket
7 Day3.0%2.1%2.1%
30 Day-13.6%-8.8%-3.2%
90 Day-12.6%-7.5%2.8%
1 Year-17.3%-21.6%-20.3%-23.1%2.2%-0.04%
3 Year-3.2%-15.3%-6.6%-15.0%41.5%32.3%
5 Year-46.7%-59.8%-33.6%-42.6%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

450.98x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Williams Companies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Williams Companies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Williams Companies is overvalued based on earnings compared to the US Oil and Gas industry average.

Williams Companies is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Williams Companies is poor value based on expected growth next year.


Price Based on Value of Assets

Williams Companies is overvalued based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

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

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Williams Companies's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

Williams Companies's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).

Williams Companies's revenue growth is positive but not above the United States of America market average.

Williams Companies's earnings growth is positive but not above the United States of America market average.

Williams Companies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Williams Companies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Williams Companies's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Williams Companies's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Williams Companies's 1-year earnings growth is negative, it can't be compared to the US Oil and Gas industry average.


Return on Equity

Williams Companies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Williams Companies used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Williams Companies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Williams Companies's financial position?


Financial Position Analysis

Williams Companies's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Williams Companies's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Williams Companies's level of debt (130.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (135.9% vs 130.4% today).

Debt is not well covered by operating cash flow (15.9%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

7.26%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Williams Companies before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Williams Companies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Williams Companies's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.7x coverage).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Murray Armstrong (57yo)

8.6yrs

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

Murray's remuneration is about average for companies of similar size in United States of America.

Murray's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

52yo

Average Age

The tenure for the Williams Companies management team is about average.


Board Age and Tenure

3.0yrs

Average Tenure

65.5yo

Average Age

The average tenure for the Williams Companies board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Williams Companies individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$232,19115 Aug 19
Michael Creel
EntityIndividual
Role
Member of the Board of Directors
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
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
Director
Shares10,000
Max PriceUS$27.33
SellUS$263,36021 Feb 19
Kathleen Cooper
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,615
Max PriceUS$27.39
SellUS$249,85630 Nov 18
Kathleen Cooper
EntityIndividual
Role
Member of the Board of Directors
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
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: 8.6yrs
    • Compensation: US$10.69m
  • John Chandler (49yo)

    Senior VP & CFO

    • Tenure: 1.9yrs
    • Compensation: US$3.70m
  • Ted Timmermans (62yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 14.1yrs
  • Mike Dunn (53yo)

    Executive VP & COO

    • Tenure: 2.5yrs
    • Compensation: US$5.10m
  • Chad Zamarin (42yo)

    Senior Vice President of Corporate Strategic Development

    • Tenure: 2.2yrs
    • Compensation: US$3.72m
  • Jim Scheel (54yo)

    Senior Vice President of Northeast Gathering & Processing

    • Tenure: 5.6yrs
    • Compensation: US$2.56m
  • Terence Wilson (52yo)

    Senior VP & General Counsel

    • Tenure: 2.3yrs
  • John Porter (49yo)

    Vice President of Enterprise Financial Planning & Analysis and Investor Relations

    • Tenure: 14.6yrs
  • Brett Krieg

    Assistant Director Investor Relations

    • Tenure: 0.0yrs
  • Debbie Cowan (41yo)

    Senior VP & Chief Human Resource Officer

    • Tenure: 0.8yrs

Board Members

  • Steve Bergstrom (62yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$505.01k
  • Steve Chazen (72yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$285.00k
  • Scott Sheffield (66yo)

    Director

    • Tenure: 3.0yrs
    • Compensation: US$290.00k
  • Mike Creel (65yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$275.00k
  • Casey Cogut (72yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$285.00k
  • Bill Spence (62yo)

    Director

    • Tenure: 3.0yrs
    • Compensation: US$305.00k
  • Murray Armstrong (57yo)

    President

    • Tenure: 8.6yrs
    • Compensation: US$10.69m
  • Murray Smith (69yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: US$295.50k
  • Peter Ragauss (61yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$315.00k
  • Kathleen Cooper (74yo)

    Director

    • Tenure: 12.9yrs
    • 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$28.604b
  • Shares outstanding: 1.21b
  • Website: https://www.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 Analysis2019/08/22 23:45
End of Day Share Price2019/08/22 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.