Williams Companies Intrinsic Stock Value – Williams Cos. Stock Increases Wednesday, Lags Behind Market Performance
December 15, 2023
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On Wednesday, Williams ($NYSE:WMB) Cos. saw an increase in its stock, yet it continues to lag behind the performance of the market overall. Williams Cos. is a diversified energy infrastructure company with offices located across the United States, Canada, Mexico, and South America. Its operations include natural gas pipelines, midstream, gathering and processing, and liquids businesses. While the stock saw an increase on Wednesday, its performance continues to fall short of that of the overall market.
Analysts attribute this to a wide range of issues, including a general wariness among investors about the future of energy stocks in light of the global pandemic and ongoing trade tensions. Analysts caution that, while there may be short-term increases in Williams Cos. stock, until these larger issues are resolved, its long-term performance is uncertain.
Market Price
Wednesday was a positive day for Williams Cos. stock, as the company’s stock increased from the previous day’s close of $34.4 to $34.7, representing a 0.7% increase. Despite the modest gains, investors appeared encouraged by the performance of Williams Cos., as it was able to slightly outperform the market. It remains to be seen whether this trend will continue in the future or if this was a one-time event. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Williams Companies. More…
| Total Revenues | Net Income | Net Margin |
| 11.05k | 2.71k | 24.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Williams Companies. More…
| Operations | Investing | Financing |
| 5.34k | -3.47k | -658 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Williams Companies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 50.79k | 36.45k | 9.74 |
Key Ratios Snapshot
Some of the financial key ratios for Williams Companies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.6% | 18.6% | 45.4% |
| FCF Margin | ROE | ROA |
| 24.0% | 26.6% | 6.2% |
Analysis – Williams Companies Intrinsic Stock Value
At GoodWhale, we recently conducted an analysis of WILLIAMS COMPANIES. Through our proprietary Valuation Line, we determined that the intrinsic value of WILLIAMS COMPANIES shares is around $31.6. Currently, those shares are trading at $34.7, which is a fair price that is slightly overvalued by 9.8%. Our analysis indicates that this company should be a safe and attractive investment for many investors. More…
Peers
The Williams Companies Inc is a publicly traded company that is engaged in energy transportation and infrastructure development. The company operates through its subsidiaries in three segments: Williams Partners, Williams NGL and Williams Midstream. The company’s headquarters are in Tulsa, Oklahoma.
The company’s main competitors are Kinder Morgan Inc, ONEOK Inc, Enterprise Products Partners LP. These companies are all engaged in the energy transportation and infrastructure development business.
– Kinder Morgan Inc ($NYSE:KMI)
Kinder Morgan Inc., together with its subsidiaries, operates as an energy infrastructure company in North America. The company operates in three segments: Natural Gas Pipelines, Products Pipelines, and Terminals. The Natural Gas Pipelines segment owns and operates natural gas pipelines and storage facilities. This segment also transports natural gas to electric power generation facilities, local distribution companies, direct industrial users, and natural gas marketers. The Products Pipelines segment owns and operates refined petroleum products pipelines and terminals. The Terminals segment owns and operates Terminals that provide storage, handling, and other services for petroleum products, chemicals, minerals, and other bulk materials. The company was founded in 1997 and is headquartered in Houston, Texas.
– ONEOK Inc ($NYSE:OKE)
ONEOK is one of the largest energy midstream service providers in the United States. The company has a market cap of $24.88B as of 2022 and a Return on Equity of 28.78%. ONEOK provides natural gas gathering, processing, storage, and transportation services to customers in the United States and Canada. The company also owns and operates natural gas liquids (NGL) gathering, processing, fractionation, and transportation systems.
– Enterprise Products Partners LP ($NYSE:EPD)
Enterprise Products Partners LP is a publicly traded partnership that owns, operates, develops, and acquires midstream energy assets in the United States. The company’s assets include natural gas pipelines, gathering and processing facilities, and storage terminals. Enterprise Products Partners LP is headquartered in Houston, Texas.
Summary
Analysts remain optimistic about the company’s future prospects, citing its focus on cost control and diversified portfolio of energy infrastructure assets. Additionally, Williams is a major player in the natural gas value chain and has been able to benefit from the recent uptick in energy prices.
