The Williams Companies, Inc. [NYSE:WMB]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding The Williams Companies, Inc. [WMB], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give WMB an Outperform rating. Its stock price has been found in the range of 20.36 to 32.22. This is compared to its latest closing price of $27.71.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Williams Companies, Inc. [WMB] is sitting at 1.67. This is compared to 1 month ago, when its average rating was 1.67.
For the quarter ending in Mar-19 The Williams Companies, Inc. [WMB] generated $2.05 billion in sales. That’s 11.98% lower than the average estimate of $2.33 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Wed 7 Aug (In 83 Days).
Fundamental Analysis of The Williams Companies, Inc. [WMB]
Now let’s turn to look at profitability: with a current Operating Margin for The Williams Companies, Inc. [WMB] sitting at +23.45 and its Gross Margin at +29.77, this company’s Net Margin is now -1.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 5.39, and its Return on Invested Capital has reached 1.60%. Its Return on Equity is -1.27, and its Return on Assets is -0.33. These metrics suggest that this The Williams Companies, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, The Williams Companies, Inc. [WMB] has generated a Total Debt to Total Equity ratio of 152.89. Similarly, its Total Debt to Total Capital is 60.46, while its Total Debt to Total Assets stands at 48.29. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 152.94, and its Long-Term Debt to Total Capital is 60.33.
What about valuation? This company’s Enterprise Value to EBITDA is 14.66 and its Total Debt to EBITDA Value is 5.91. The Enterprise Value to Sales for this firm is now 6.43, and its Total Debt to Enterprise Value stands at 0.50. The Williams Companies, Inc. [WMB] has a Price to Book Ratio of 1.82, a Price to Cash Flow Ratio of 6.52.
Shifting the focus to workforce efficiency, The Williams Companies, Inc. [WMB] earns $1,632,093 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.83 and its Total Asset Turnover is 0.19. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.74 and its Current Ratio is 0.81. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
The Williams Companies, Inc. [WMB] has 1.21B shares outstanding, amounting to a total market cap of $33.57B. Its stock price has been found in the range of 20.36 to 32.22. At its current price, it has moved by -14.43% from its 52-week high, and it has moved 35.41% from its 52-week low.
This stock’s Beta value is currently 1.70, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.42. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Williams Companies, Inc. [WMB] a Reliable Buy?
The Williams Companies, Inc. [WMB] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.