Stock of the Day

July 24, 2019

Williams Companies (WMB)

$57.44
-$1.02 (-1.7%)
Market Cap: $71.25B

About Williams Companies

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, West, and Gas & NGL Marketing Services segments. The Transmission & Gulf of Mexico segment comprises natural gas pipelines; Transco, Northwest pipeline, MountainWest, and related natural gas storage facilities; and natural gas gathering and processing, and crude oil production handling and transportation assets in the Gulf Coast region. The Northeast G&P segment engages in the midstream gathering, processing, and fractionation activities in the Marcellus Shale region primarily in Pennsylvania and New York, and the Utica Shale region of eastern Ohio. The West segment consists of gas gathering, processing, and treating operations in the Rocky Mountain region of Colorado and Wyoming, the Barnett Shale region of north-central Texas, the Eagle Ford Shale region of South Texas, the Haynesville Shale region of northwest Louisiana, the Mid-Continent region that includes the Anadarko and Permian basins, and the DJ Basin of Colorado; and operates natural gas liquid (NGL) fractionation and storage facilities in central Kansas near Conway. The Gas & NGL Marketing Services segment provides wholesale marketing, trading, storage, and transportation of natural gas for natural gas utilities, municipalities, power generators, and producers; asset management services; and transports and markets NGLs. The company owns and operates 33,000 miles of pipelines. The Williams Companies, Inc. was founded in 1908 and is headquartered in Tulsa, Oklahoma.

Williams Companies Bull Case

Here are some ways that investors could benefit from investing in The Williams Companies, Inc.:

  • The Williams Companies, Inc. recently reported a quarterly earnings per share (EPS) of $0.47, meeting analysts' expectations, which indicates stable financial performance.
  • The company has increased its quarterly dividend to $0.50 per share, reflecting a commitment to returning value to shareholders, with an annualized yield of 3.51%.
  • Analysts have a consensus price target of $53.29 for the stock, suggesting potential upside from the current trading price of $57.00.
  • Institutional investors and hedge funds own 86.44% of the company's stock, indicating strong confidence from large financial entities in The Williams Companies, Inc.
  • The company has a solid net margin of 27.36%, which demonstrates effective cost management and profitability in its operations.

Williams Companies Bear Case

Investors should be bearish about investing in The Williams Companies, Inc. for these reasons:

  • The company has a debt-to-equity ratio of 1.67, which suggests a higher level of debt compared to equity, potentially increasing financial risk.
  • Despite the recent dividend increase, the payout ratio stands at 80.17%, indicating that a significant portion of earnings is being distributed as dividends, which may limit reinvestment in growth opportunities.
  • The current ratio of 0.57 and quick ratio of 0.51 indicate potential liquidity issues, as the company may struggle to cover short-term liabilities with its current assets.
  • Recent stock performance shows a decline of 0.8%, which may raise concerns about the company's market stability and investor sentiment.
  • One analyst has rated the stock with a sell rating, which could signal caution for potential investors regarding future performance.

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