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Williams Companies Inc WMB

Morningstar Rating
$34.94 +0.04 (0.11%)
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Company Report

Williams Earnings: Making the Case for Certainty in Uncertain LNG Environment

Williams’ fourth-quarter results met our expectations, with full-year EBITDA at $6.8 billion, which matched our forecast. 2023 EBITDA is up about 6% over 2022 levels primarily due to acquisitions-led growth from Mountain West and NorTex. Our 2024 and 2025 EBITDA forecasts of $7.1 billion and $7.3 billion also look realistic given Williams’ guided midpoints of $6.95 billion and $7.4 billion, respectively. We expect to maintain our $36 fair value estimate and narrow moat rating.

Price vs Fair Value

WMB is trading at a 3% discount.
Price
$34.94
Fair Value
$82.00
Uncertainty
Medium
1-Star Price
$22.30
5-Star Price
$87.40
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

A large, well-positioned network allows Williams to invest in high-return growth projects with minimal regulatory hurdles.

Bears

Williams is focused almost exclusively on natural gas, meaning any upside in other energy prices will have little impact on earnings or valuation.

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News

Trading Information

Previous Close Price
$34.90
Day Range
$34.6735.07
52-Week Range
$27.8037.45
Bid/Ask
$34.43 / $35.10
Market Cap
$42.51 Bil
Volume/Avg
5.7 Mil / 7.2 Mil

Key Statistics

Price/Earnings (Normalized)
16.87
Price/Sales
3.71
Dividend Yield (Trailing)
5.12%
Dividend Yield (Forward)
5.44%
Total Yield
5.41%

Company Profile

Williams Companies is a midstream energy company that owns and operates the large Transco and Northwest pipeline systems and associated natural gas gathering, processing, and storage assets. In August 2018, the firm acquired the remaining 26% ownership of its limited partner, Williams Partners.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Mid Core
Total Number of Employees
5,601

Competitors

Valuation

Metric
WMB
ENB
KMI
Price/Earnings (Normalized)
16.8716.1115.05
Price/Book Value
3.251.721.22
Price/Sales
3.712.122.41
Price/Cash Flow
6.917.796.97
Price/Earnings
WMB
ENB
KMI

Financial Strength

Metric
WMB
ENB
KMI
Quick Ratio
0.650.620.23
Current Ratio
0.770.830.35
Interest Coverage
4.503.042.78
Quick Ratio
WMB
ENB
KMI

Profitability

Metric
WMB
ENB
KMI
Return on Assets (Normalized)
4.67%3.23%3.46%
Return on Equity (Normalized)
19.77%10.46%7.89%
Return on Invested Capital (Normalized)
8.25%6.00%6.00%
Return on Assets
WMB
ENB
KMI
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Oil & Gas Midstream Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ENB
Enbridge IncMngpr$74.1 Bil
EPD
Enterprise Products Partners LPZlvs$60.1 Bil
ET
Energy Transfer LPQzwr$50.1 Bil
OKE
ONEOK IncMcvjjct$42.5 Bil
TRP
TC Energy CorpBtkrjb$41.3 Bil
MPLX
MPLX LP Partnership UnitsKdlzdy$39.7 Bil
KMI
Kinder Morgan Inc Class PLmbpp$38.3 Bil
LNG
Cheniere Energy IncTkz$37.0 Bil
CQP
Cheniere Energy Partners LPBqqp$25.2 Bil

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