Williams Companies Inc
NYSE:WMB
Intrinsic Value
The Williams Cos., Inc. operates as an energy infrastructure company, which explores, produces, transports, sells and processes natural gas and petroleum products. [ Read More ]
The intrinsic value of one WMB stock under the Base Case scenario is 39.81 USD. Compared to the current market price of 38.97 USD, Williams Companies Inc is Undervalued by 2%.
Valuation Backtest
Williams Companies Inc
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Fundamental Analysis
Raised EBITDA Guidance Amid Strong Q3 Results
2023-Q3 Earnings Call
Despite a 68% slump in natural gas prices during Q3 2023 and a year-to-date price drop of 63%, the company delivered a 6% increase in base business EBITDA for Q3 and a 9% rise year-to-date, implying sound operational resilience. The Transmission & Gulf of Mexico business posted a 12% jump, buoyed notably by acquisitions. Northeast gathering and processing volumes grew by 4% in spite of low shoulder season prices. Leveraging this steady base business performance, the company confidently upgraded its full-year adjusted EBITDA guidance to $6.6 - $6.8 billion, with a midpoint shift to $6.7 billion. With an improved balance sheet showcasing a debt to adjusted EBITDA of 3.45 times, improved from last year's 3.68 times, and anticipation of a significant legal settlement, the outlook remains positive with growth forecasted for 2024 and a larger expansion expected in 2025.
Balance Sheet Decomposition
Williams Companies Inc
Current Assets | 4.5B |
Cash & Short-Term Investments | 2.2B |
Receivables | 1.7B |
Other Current Assets | 708m |
Non-Current Assets | 48.1B |
Long-Term Investments | 4.6B |
PP&E | 34.3B |
Intangibles | 7.6B |
Other Non-Current Assets | 1.6B |
Current Liabilities | 5.8B |
Accounts Payable | 1.4B |
Accrued Liabilities | 1.3B |
Short-Term Debt | 725m |
Other Current Liabilities | 2.4B |
Non-Current Liabilities | 34.4B |
Long-Term Debt | 23.4B |
Other Non-Current Liabilities | 11B |
Earnings Waterfall
Williams Companies Inc
Revenue
|
10.9B
USD
|
Cost of Revenue
|
-2B
USD
|
Gross Profit
|
8.9B
USD
|
Operating Expenses
|
-4.7B
USD
|
Operating Income
|
4.2B
USD
|
Other Expenses
|
-1B
USD
|
Net Income
|
3.2B
USD
|
Free Cash Flow Analysis
Williams Companies Inc
What is Free Cash Flow?
WMB Profitability Score
Profitability Due Diligence
Williams Companies Inc's profitability score is 65/100. The higher the profitability score, the more profitable the company is.
Score
Williams Companies Inc's profitability score is 65/100. The higher the profitability score, the more profitable the company is.
WMB Solvency Score
Solvency Due Diligence
Williams Companies Inc's solvency score is 26/100. The higher the solvency score, the more solvent the company is.
Score
Williams Companies Inc's solvency score is 26/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
WMB Price Targets Summary
Williams Companies Inc
According to Wall Street analysts, the average 1-year price target for WMB is 39.51 USD with a low forecast of 35.35 USD and a high forecast of 45.15 USD.
Ownership
WMB Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
WMB Price
Williams Companies Inc
Average Annual Return | 11.64% |
Standard Deviation of Annual Returns | 26.52% |
Max Drawdown | -66% |
Market Capitalization | 47.4B USD |
Shares Outstanding | 1 216 749 952 |
Percentage of Shares Shorted | 1.77% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
The Williams Cos., Inc. operates as an energy infrastructure company, which explores, produces, transports, sells and processes natural gas and petroleum products. The company is headquartered in Tulsa, Oklahoma and currently employs 4,783 full-time employees. The Company’s segments include Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services. Transmission & Gulf of Mexico segment comprised of its interstate natural gas pipelines, Transco and Northwest Pipeline, as well as natural gas gathering and processing and crude oil production handling and transportation assets in the Gulf Coast region. The Northeast G&P segment comprised its midstream gathering, processing and fractionation businesses in the Marcellus Shale region, and the Utica Shale region of eastern Ohio. West segment comprised its 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, and the Mid-Continent region. The Gas & NGL Marketing Services segment includes its natural gas liquids (NGL) and natural gas marketing services.
Contact
IPO
Employees
Officers
The intrinsic value of one WMB stock under the Base Case scenario is 39.81 USD.
Compared to the current market price of 38.97 USD, Williams Companies Inc is Undervalued by 2%.